The board of African Rainbow Minerals (ARM) has approved the construction of a chrome recovery plant at the Bokoni platinum mine.
ARM acquired Bokoni from Anglo American Platinum and Atlatsa Resources in September 2022. Situated on 15,000 hectares in the eastern limb of the Bushveld Complex, Bokoni is known for its chrome-rich upper group two (UG2) mineralization.
ARM CEO Phillip Tobias announced during the company’s results presentation for the fiscal year ending June 30 that detailed design work is currently underway, with construction of the chrome recovery plant set to begin in early 2025.
Tobias emphasized that the current chrome market conditions are favorable, stating, “We believe it will enhance our basket by at least 10% moving forward.”
When asked for more details about the chrome recovery plant and the anticipated output, Tobias noted that chrome is being sourced at a cost of R670 per ton, while selling prices hover around R3,600 per ton, indicating a substantial profit margin. “It’s highly profitable, in high demand, with a high margin,” he explained, highlighting China’s role as a major buyer of chrome ore.
In line with its strategy, ARM aims to align Bokoni’s operations with its successful approaches at the Modikwa and Two Rivers platinum group metals (PGM) operations. “This will provide additional revenue on top of our existing fixed costs, thereby diluting the overall operating costs,” Tobias said.
Currently, Bokoni’s production level stands at 60,000 tons per month, which Tobias described as unsustainable. He noted that an ideal capacity would be 240,000 tons per month. “We are conducting studies to determine how we can improve the situation, as 60,000 tons per month is costly,” he added, promising to share the study outcomes in the future.
In addition to platinum group metals, ARM, led by executive chairperson Dr. Patrice Motsepe, is involved in the mining and beneficiation of iron ore, manganese ore, chrome ore, nickel, and coal, and holds a strategic investment in gold through Harmony Gold Mining Company.
