Overview
The Bengwenyama PGM-Chrome project is a premier development located on the Eastern Limb of South Africa’s Bushveld Complex.
Hosting both the Merensky and UG2 reefs, Bengwenyama contains a JORC-compliant resource base of more than 40Moz 3PGE+Au, positioning it among the most significant undeveloped PGM projects globally.
Metallurgical test work completed as part of the Definitive Feasibility Study has delivered a significant improvement in chromite recoveries, supporting the inclusion of a dense media separation circuit and further strengthening Bengwenyama’s development potential.
Following the grant of the Mining Right in August 2026, Southern Palladium is progressing Bengwenyama’s development pathway, with the Definitive Feasibility Study (DFS) well advanced and planning underway for early development works.
Location and infrastructure
The project is located near Steelpoort in the Limpopo Province, approximately 20 km from Burgersfort and 250 km from Pretoria, covering 5,280 hectares in one of South Africa’s premier PGM belts.
Bengwenyama benefits from tarred road access, reliable water and power, and proximity to established mining operations and skilled labour — key enablers for efficient development.
“World class mineralisation with a reserve of 6Moz and a total indicated, inferred and measured resource of 40Moz”
Community participation
Southern Palladium is committed to advancing Bengwenyama responsibly, creating sustainable benefits for its stakeholders, host communities and shareholders.
Community participation and benefit are foundation blocks of our approach to the development of the Bengwenyama project.
Environmental authorisation
In May 2025, Bengwenyama was granted Environmental Authorisation under NEMA. Importantly, no objections were lodged during the consultation period.
Together with the Mining Right now granted for Bengwenyama, the Environmental Authorisation supports the project’s continued progression through technical, development and implementation planning.
Technical progress
Bengwenyama has advanced rapidly through technical studies, confirming its global Tier-1 potential:
- Scoping Study (2024): 36-year mine life from UG2, ~330koz per year production at low costs.
- Pre-Feasibility Study (2024): 29-year mine life, ~400koz annual production, firmly in the lowest quartile of global costs.
- Optimised PFS (2025): Introduced staged development, reducing upfront funding by 38% and enhancing project financing flexibility.
- DFS metallurgical test work (2026): Delivered further improvements in projected PGM and chromite recoveries. The July 2026 results estimated full-plant chromite recovery of 85.6% at a Cr2O3 concentrate grade of 42.2%, compared with the PFS assumption of 30% chromite recovery, and estimated overall PGM recovery of 87.6%, compared with the PFS assumption of 85.3%.
The results of the DFS test work support the selection of an optimised DFS process flowsheet and reinforce the positioning of Bengwenyama as a PGM-chrome co-product development. The test work evaluated conventional UG2 processing methods, including Dense Media Separation pre-concentration, selective surface cleaning, classification, interstage chromite recovery and staged flotation.
Key highlights of the Optimised PFS:
- Stage 1: >200koz PGMs per year at ~US$875/oz cash costs.
- Stage 2: >400koz PGMs per year from year 4, with cash costs ~US$750/oz.
- NPV8 (after tax): ~US$857m, IRR 26.4%.
- Peak funding requirement reduced by 38%, enabling cash-generative early operations.
This phased approach de-risks technical assumptions and aligns growth with infrastructure roll-out and community readiness.
Geology and resources
Bengwenyama hosts both the UG2 and Merensky reefs, which form the backbone of South Africa’s platinum industry.
- UG2 Resource: 24.81Moz (Measured, Indicated & Inferred).
- Merensky Resource: 15.44Moz.
- Total Resource: 40.25Moz 3PGE+Au.
With average reef widths of 70cm (UG2) and 2m (Merensky) and grades near 10g/t, Bengwenyama compares favourably to leading global PGM operations.
Exploration and growth potential
Current drilling programmes are focused on upgrading shallow UG2 resources to higher confidence categories and converting exploration targets into defined resources.
This work underpins the Definitive Feasibility Study (DFS), which is already underway and scheduled for completion in 2026, ahead of a Final Investment Decision.
Investment case
Bengwenyama stands out as one of the most attractive undeveloped PGM projects globally, thanks to its:
- Tier-1 scale – >40Moz 3PGE+Au resource base.
- Lowest quartile costs – strong resilience through commodity cycles.
- Staged development plan – reduced upfront capital, early cash flow, improved financing flexibility.
- Regulatory progress – Environmental Authorisation granted, Mining Right application in process.
- Community ownership – secured under Section 104 rights, ensuring sustainable and inclusive growth.
Next steps
- Completion of the DFS (1Q2027)
- Engineering and development planning (finished in DFS)
- Updated Mineral Resource Estimate statement (4Q2026)
- Finalising a chrome pre-pay (by 1Q2027)
- Finalising a PGM concentrate offtake arrangement with a major (1Q2027)
- Awarding of key box-cut and decline development contracts (4Q2026)
- Site mobilisation and early works (4Q2026)
- Securing the remaining operational approvals (waste management and water use licenses)
Building momentum toward development