African Rainbow Minerals has approved a phased $927.28 million redevelopment of the Bokoni platinum mine, alongside the resumption of nickel mining at its Nkomati operation in Mpumalanga.
The Johannesburg-listed group, chaired by billionaire Patrice Motsepe, confirmed on Thursday that its board had signed off on the two projects after a period of improving platinum group metal prices and steady demand from the automotive sector.
Miningmx reported that the Bokoni platinum mine redevelopment will cost roughly R15.2 billion and will run over seven years, while the Nkomati nickel restart carries a separate price tag of about R753 million. Combined, the two projects amount to nearly R16 billion, translating to the $927.28 million figure ARM has cited for the overall programme.
Work at the Bokoni platinum mine will concentrate on the UG2 orebody, developed in phases using a mix of mechanised and traditional stoping methods. A new concentrator with capacity of 120,000 tonnes a month will be built at the Bokoni platinum mine, adding to an existing 60,000 tonnes a month plant that was recently refurbished. ARM expects the operation to reach annual output of between 300,000 and 450,000 platinum group metal ounces by 2033.
The Bokoni platinum mine sits near the town of Atok in Limpopo province and has a difficult operating history. Anglo Platinum and Atlatsa Resources Corporation both struggled to make the asset profitable before it was closed in 2017. ARM later bought the mine in 2021 for R3.5 billion and restarted production, only to shut it again in September last year as depressed platinum group metal prices squeezed margins.
Citi welcomed the fresh investment, describing it in a note as a prudent use of ARM’s balance sheet given elevated platinum group metal prices over the past year. Platinum has traded 14 percent higher over the past twelve months and touched $2,773 an ounce in January, before the Middle East conflict pushed investors back toward the dollar. ARM reported estimated net cash of about R9.5 billion as of the end of June, giving it headroom to fund the Bokoni platinum mine expansion without straining its finances.
According to Miningmx, the Bokoni project will be funded mainly through ARM’s own resources, cash generated by the mine during ramp up, and external debt where required.
ARM took full control of Nkomati in 2023 after buying out its former partner, Russian miner Norilsk Nickel, which had wanted to exit its African assets. The mine, located roughly 300 kilometres east of Johannesburg, has been under care and maintenance since it was placed on hold, and holds one of the largest nickel reserves in South Africa.
At Nkomati, ARM will target steady state nickel concentrate production of 56,065 tonnes a year once the open pit mine is fully operational. The restart follows an off take agreement reached in April with Boliden Commercial AB, a Swedish metals group that will give Nkomati access to European demand for nickel units. Plant refurbishment at Nkomati began this month, with open pit mining scheduled to start in October 2026. ARM said the mine has a projected life of thirteen years.
The twin announcements mark one of the largest single investment commitments by a South African mining group this year and signal renewed confidence in the platinum group metals sector after a prolonged downturn. For Limpopo and Mpumalanga, where both operations are based, the projects are expected to support thousands of jobs across construction, mining and processing as the Bokoni platinum mine and Nkomati ramp back up towards full production.
ARM’s broader business spans iron ore, manganese and coal through its Assmang joint venture and other holdings, and the group has positioned platinum group metals and nickel as central to its growth plan as demand for battery and clean energy minerals rises. The company is scheduled to report its full year results later in 2026, when investors will get a clearer view of how the Bokoni platinum mine and Nkomati investments are progressing.
