Sylvania Platinum Limited Announces Chrome Ore And PGM Treatment Joint Venture Agreement
Sylvania Platinum Limited Announces Chrome Ore And PGM Treatment Joint Venture Agreement. Sylvania, the platinum group metals producer and developer, with assets in South Africa, is pleased to announce that its wholly owned South African subsidiary, Sylvania Metals (Pty) Limited, has entered into an unincorporated Joint Venture Agreement with Limberg Mining Company (Pty) Limited, a subsidiary of ChromTech Mining Company (Pty) Limited. The JV will process PGM and chrome ores from historical tailings dumps and current arisings from the Limberg Chrome Mine, located on the northern part of the Western Limb of the Bushveld Complex, South Africa. The JV will trade and operate under the name Thaba Joint Venture.
The Thaba JV represents a major step in delivery of Sylvania’s growth strategy and is a significant step forward for Sylvania Metals in expanding its operations and leveraging its expertise in the recovery of chrome and PGM concentrates, adding attributable production of approximately 6,500 4E PGM ounces and introduce 200,000 tons of chromite concentrate to Sylvania Metals’ existing annual production profile.
Jaco Prinsloo, CEO of Sylvania, said: “The Thaba JV combines the strengths and expertise of both companies in the mining and processing industry – Sylvania Metals has a proven track record in the recovery, sale, and distribution of PGMs, while LMC contributes ChromTech’s extensive experience of chrome operations, with particular expertise in fine chrome beneficiation. We are looking forward to collaborating with LMC, who will provide access rights to the Mining Area and brings its knowledge and skills in mining and processing operations to ensure the production of low-cost, high-grade chromite concentrate and PGMs from the Middle Group Reef on the north of the Western Limb of the Bushveld Complex in South Africa.”
“We are excited about the prospects of the Thaba JV to create substantial value for our shareholders, and to add chrome to our portfolio of commodities, whilst strengthening our PGM production. The Thaba JV will add an attributable production of approximately 6,500 4E PGM ounces and 200,000 tons of chromite concentrate to Sylvania Metals’ existing production profile and offers an attractive investment return on the project that exceeds our Company IRR hurdle rate of at least 20%, along with a cash pay back of less than three years from commissioning, based on current long term consensus pricing. The establishment of the JV holds significant potential for Sylvania as it aligns with the Company’s growth strategy and enhances its position in the mining and processing industry. The JV will enable Sylvania Metals to access valuable resources, expand its production capabilities, and strengthen its distribution channels for target products, ultimately driving value for the Group and its stakeholders.” Prinsloo continued.
Jono Gay, CEO of LMC, said: “The establishment of the Thaba JV is a ground-breaking collaboration between industry leading operators that is anticipated to generate sustainable value for all stakeholders. LMC eagerly anticipates the formation of this long-lasting partnership with Sylvania Metals. Both our companies share a philosophy for unwavering excellence, underpinned by our collective commitment to Environmental, Social and Governance principles. With this JV, we are poised to unlock LMC’s potential and position it as a key growth engine within the ChromTech Group. In light of our continued business diversification into open-cast chrome and PGM mining, LMC, the most recent acquisition of the ChromTech Group, represents an essential growth area for our company.”
