South African mining giant eyes bold move at world’s biggest platinum mine

Mogalakwena – Valterra Platinum is moving closer to a decision on an underground mining project at its Mogalakwena operation in Limpopo, South Africa, as declining ore grades and rising open-pit mining costs increase pressure to secure higher-quality platinum-group metals (PGMs).

According to Bloomberg, the company plans to begin trial mining at the Sandsloot underground project in late 2026, with a final investment decision expected in the first half of 2027.

“We believe that going underground is the most cost-effective option for us,” Valterra chief financial officer Sayurie Naidoo told Bloomberg Television.

The project is expected to unlock higher-grade ore beneath the existing open-pit mine, which remains a cornerstone of Valterra’s operations. The company is pursuing the expansion as part of its strategy to improve production efficiency and reduce costs over the longer term.

Annual underground mining 

Reuters reported in August 2025 that Mogalakwena contributes about half of Valterra’s total PGM production. The Sandsloot development could eventually support annual underground mining of between 3.6 million and 4.5 million tonnes beyond 2030.

A September 2026 project update by Mining Weekly said the project’s prefeasibility study had supported its investment case. Phase one could increase Mogalakwena’s production by 10% to 20%, subject to board approval, while the broader expansion could ultimately raise metal-in-concentrate production by 10% to 50%.

The development comes as platinum producers face uncertainty over future demand, particularly as electric vehicles gain ground. PGMs are widely used in catalytic converters in petrol and diesel vehicles, although the industry is also pursuing applications in hydrogen technologies and other industrial markets.

Despite those challenges, Valterra chief executive Craig Miller remains optimistic about long-term supply and demand fundamentals.

“We still feel that PGMs will have a role to play in future mobility,” Miller told Bloomberg Television.

The underground project would mark a significant development for Valterra since its separation from Anglo American in 2025, positioning the company to access deeper, higher-grade resources and sustain production from one of South Africa’s most important PGM assets.