Valterra to Initiate Subterranean Mining Operations at Mogalakwena by 2026

In a significant move for the platinum group metals (PGM) industry, Valterra Platinum has chosen the Sandsloot pit at Mogalakwena, one of the world's largest open-pit PGM operations in South Africa's Limpopo province, for underground development. This decision is based on the pit's higher-grade ore bodies.

Mogalakwena's underground expansion represents a pivotal strategic move for Valterra Platinum. The company aims to sustain and potentially grow production from this cornerstone asset while meeting both traditional and emerging market demands for platinum group metals. This shift is part of a broader industry evolution trend in South Africa's platinum sector, where producers are increasingly pursuing deeper deposits.

Underground mining, however, presents technical challenges such as safety considerations, infrastructure development, and water management. To address these issues, the company plans to implement sustainable mining strategies, focusing on energy efficiency, water conservation, and biodiversity protection. The underground expansion also presents opportunities to implement advanced mining technologies, such as automation, data-driven operations, and safety enhancements, including AI in mining innovation.

The underground mining initiative is taking place during a period of corporate restructuring, with Anglo American having demerged approximately 51% of its interest in Valterra Platinum. This change provides Valterra with greater operational independence while maintaining access to Anglo American's mining expertise during the transition period.

The project follows a timeline with a feasibility study phase (2025-2027), trial mining phase (2026-2028), and production expansion (2030 and beyond). Valterra executives aim to commence underground trial mining at Mogalakwena by late 2026.

The success of this underground initiative will likely influence not only Valterra's future performance but also set precedents for similar transitions at other major PGM operations facing comparable resource challenges. The project balances immediate operational needs with long-term strategic positioning, supporting established markets while preparing for emerging opportunities in hydrogen technologies and green energy applications.

Mogalakwena's importance extends beyond Valterra's corporate performance to impact South Africa's broader mining sector and national economy. It contributes substantially to export revenue, tax base support, skills development, and foreign direct investment. The underground expansion also carries significant socioeconomic implications for communities surrounding the Mogalakwena operation, including employment opportunities, infrastructure development, and economic diversification.

Stay informed about significant ASX mineral discoveries like those transforming operations at Mogalakwena with Discovery Alert's proprietary Discovery IQ model, which provides real-time notifications on such developments.