Platreef Smelter Partner.... ;-) Ivanhoe Mines signs term sheet with leading industrial partner to explore downstream processing of PGM-nickel-copper concentrate in South Africa
Ivanhoe Mines recently signed a term sheet with a leading industrial partner to jointly explore the viability of a new PGM-nickel-copper smelter in South Africa. The agreement outlines a technical and commercial collaboration to jointly study the construction of a facility to smelt PGM-nickel-copper concentrate produced during Phase 3, as well as third-party concentrates, into a converter matte. Converter matte is an intermediary smelter product that typically consists of approximately 40 to 50% nickel and 20 to 30% copper by content, with up to 750 grams per tonne of PGM content.
Converter matte can be further processed into refined metal in South Africa, as well as at many refineries abroad. In addition, converter matte receives significantly better terms from its purchasers compared with PGM concentrates.
Both parties have committed to undertake a pre-feasibility study on the development of the facility. The facility may be a greenfield site, or alternatively may re-purpose an existing facility in South Africa. The collaboration is designed to draw on the respective skills of both parties. The smelter would be joint-owned, with Ivanhoe owning no less than 50% and with a mechanism to increase its ownership in the future.