Project Overview and Strategic Goals
On October 3, 2025, Tharisa plc announced board approval for a US$ 547 million investment to transition its flagship Tharisa Mine in South Africa’s Bushveld Complex from open pit to underground operations. The multi-phase project aims to extend the mine’s life beyond 2040 and increase production of platinum group metals (PGMs) and chrome concentrate, reinforcing Tharisa’s position as one of the leading integrated PGM-chrome producers globally. The underground development will unlock deeper ore bodies, improve recovery rates, and reduce surface environmental impacts associated with traditional open-pit methods.
Operational and Technical Features
The approved plan includes the development of twin declines, mechanized stopping systems, and advanced ventilation infrastructure to sustain production capacity of approximately 200,000 ounces of PGMs and 2 million tons of chrome concentrate per year once fully operational. Tharisa executives confirmed that the transition will begin in early 2026, with first ore expected by late 2027. The company highlighted the integration of renewable energy solutions, including solar and battery storage—to reduce operational emissions, alongside new water recycling facilities designed to meet South Africa’s tightening environmental standards. Engineering partners from Metso and Worley are expected to support detailed design and construction.
Market and Policy Implications
Tharisa’s investment arrives amid a challenging backdrop for the PGM sector, with volatile prices and constrained margins across platinum, palladium, and rhodium markets. However, the move signals confidence in long-term demand growth for both PGMs (driven by industrial and hydrogen applications) and chrome, which remain essential for stainless steel production. Analysts view the project as a major boost for South Africa’s mining sector, demonstrating renewed capital commitment and technological modernization despite policy uncertainty and energy constraints. The transition to underground mining not only enhances Tharisa’s sustainability profile but also positions the company to capture future market recovery, contributing to South Africa’s broader strategy to revitalize its mineral economy and attract new investment in value-added downstream processing.