Southern Palladium takes next step for Bengwenyama PGM project
12 August 2024 - 18:45
by Lindiwe Tsobo
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Junior Australian miner Southern Palladium on Monday announced the submission of its environmental impact assessment (EIA) report for the Bengwenyama project in SA.
The EIA report, which was submitted on July 10, was compiled by independent consultants OMI Solutions in accordance with the EIA regulations. The report was acknowledged by the department of mineral resources & energy on July 22, paving the way for a detailed review process to begin.
“This acknowledgment is a critical step, as it confirms that the core parameters of the EIA submission have been met correctly by the company, allowing the [department] to proceed with the review,” the statement read. “This milestone marks a crucial step forward for the company, demonstrating its commitment to environmental stewardship and sustainable mining practices.”
The Bengwenyama project, situated on the eastern side of the Bushveld Complex, has the potential to produce palladium, rhodium, platinum and iridium. Bushveld contains about 70% of the world’s known platinum group metal (PGM) resources.
The company said additional permit applications were in progress, including for waste management and water use for the project.
The EIA submission, along with the other licence submissions, form part of the comprehensive review process for Southern Palladium’s mining right application. Both licence applications are scheduled to be completed and submitted by December.
MD Johan Odendaal expressed confidence in the company’s progress. “We remain on track to complete the mining right application process by the end of the first quarter of 2025, with the formal granting expected shortly thereafter. This will position Southern Palladium to advance the Bengwenyama project, delivering significant value to our stakeholders and contributing to the economic development of the region.”
Mining projects can have long lead times between exploration, development and production, exposing players to potential risks as the industry is cyclical and capital intensive. Junior miners, in particular, can be more vulnerable in long downward cycles unless bigger players with big balance sheets come on board.
The perceived inherent risks mean junior miners tend to struggle to attract backing from big institutional investors.
Southern Palladium has a market valuation of R493m on the JSE, where it has a secondary listing. Its primary listing is in Australia.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Southern Palladium takes next step for Bengwenyama PGM project
Junior Australian miner Southern Palladium on Monday announced the submission of its environmental impact assessment (EIA) report for the Bengwenyama project in SA.
The EIA report, which was submitted on July 10, was compiled by independent consultants OMI Solutions in accordance with the EIA regulations. The report was acknowledged by the department of mineral resources & energy on July 22, paving the way for a detailed review process to begin.
“This acknowledgment is a critical step, as it confirms that the core parameters of the EIA submission have been met correctly by the company, allowing the [department] to proceed with the review,” the statement read. “This milestone marks a crucial step forward for the company, demonstrating its commitment to environmental stewardship and sustainable mining practices.”
The Bengwenyama project, situated on the eastern side of the Bushveld Complex, has the potential to produce palladium, rhodium, platinum and iridium. Bushveld contains about 70% of the world’s known platinum group metal (PGM) resources.
The company said additional permit applications were in progress, including for waste management and water use for the project.
The EIA submission, along with the other licence submissions, form part of the comprehensive review process for Southern Palladium’s mining right application. Both licence applications are scheduled to be completed and submitted by December.
MD Johan Odendaal expressed confidence in the company’s progress. “We remain on track to complete the mining right application process by the end of the first quarter of 2025, with the formal granting expected shortly thereafter. This will position Southern Palladium to advance the Bengwenyama project, delivering significant value to our stakeholders and contributing to the economic development of the region.”
Mining projects can have long lead times between exploration, development and production, exposing players to potential risks as the industry is cyclical and capital intensive. Junior miners, in particular, can be more vulnerable in long downward cycles unless bigger players with big balance sheets come on board.
The perceived inherent risks mean junior miners tend to struggle to attract backing from big institutional investors.
Southern Palladium has a market valuation of R493m on the JSE, where it has a secondary listing. Its primary listing is in Australia.
tsobol@businesslive.co.za
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