American–Canadian billionaire Robert Friedland has officially inaugurated the first phase of the US$2 billion platinum-group metals (PGM) mine in South Africa, marking the start of a project that has been in development for nearly 37 years. Led by Robert Friedland himself, the founder and executive co-chair of Ivanhoe Mines, this project was also opened alongside South African President Cyril Ramaphosa, who stated it was a “sunrise industry” critical to national growth.
As the principal owner, Ivanhoe Mines holds 64% of the project, while Black Economic Empowerment partners, including 20 local communities, collectively own 26%, and the remaining 10% is held by a Japanese consortium.
Ivanhoe Mines, led by Robert Friedland, is investing a total of $1.2 billion into Phase 1 and Phase 2 of the project, with Phase 2 expected to begin operations by late 2027. Friedland stressed that Phase 1 is merely a preliminary step towards the mine’s long-term growth. A proposed Phase 3, estimated at an additional $800 million, could further expand operations and make the mine up to ten times larger.
The Platreef mine is described as “the world’s largest undeveloped precious-metals deposit.” Expected to become one of the lowest-cost global procedures for platinum, rhodium, nickel, palladium, copper, and even gold, the project is known as a major boost for South Africa’s struggling mining sector.
With over 2,000 people already employed, most from nearby communities, the project is regarded as a major catalyst for local economic growth and broader regional upliftment. While it serves as a vital boost to South Africa’s economy, other Commonwealth countries such as the United Kingdom, Canada, Australia, India, and Singapore, which rely on these metals, also stand to benefit through improved supply stability and potentially more competitive prices.
The UK, Australia, and Canada, being strong mining sectors, can participate through consultancy, innovation in green mining technologies, equipment supply, and even partnerships, which creates new investment avenues for Commonwealth companies.
Enhancing global economic relevance, strengthening roles in critical mineral supply, and collectively influencing the growth of green industries are key advantages that the Commonwealth countries can gain from this project. The project is expected to impact the auto industries directly in the UK, India, and Australia; the jewelry sector in India; and the electronics manufacturing sectors in Singapore and Malaysia.
Despite the discovery of the deposit in the 1980s, development progressed slowly due to various factors. Low platinum-group metal (PGM) prices over the past decade reduced economic incentives, building two tier-one mines at the same time created technical and logistical challenges, and Ivanhoe’s focus on funding the Kamoa-Kakula copper project further delayed progress.
The Platreef project is of strategic significance, establishing South Africa as a major contributor to the global shift toward green energy. By supplying platinum-group metals and nickel—critical for hydrogen, clean technology, and electric vehicle development—the mine reinforces the nation’s role in advancing sustainable solutions. Its cutting-edge concentrator facility demonstrates both modern mining techniques and a strong commitment to environmental responsibility.
While developing and expanding the mine will require substantial capital for future phases, commodity price fluctuations remain a key risk—even with byproduct credits—since PGM market cycles can significantly impact profitability. Besides these financial risks, a big challenge is actually doing the work: mining a thick layer of ore is complicated, and increasing operations to 10.7 Mtpa is a big task.
Overall, one can see that the Platreef project is a showcase of achievement for South Africa and global mining, driving economic growth, employment, and technological progress. As a major supplier of platinum-group metals and critical minerals for the green-energy transition, it promises a sustainable, world-class operation that benefits South Africa, the Commonwealth, and global supply chains.
