Patrice Motsepe’s ARM approves $926 million Bokoni platinum project, restarts Nkomati nickel mine

African Rainbow Minerals (ARM), the diversified mining group controlled by South African billionaire Patrice Motsepe, has approved a major expansion of its platinum operations alongside the restart of its Nkomati nickel mine, signaling a renewed push to strengthen its position in South Africa’s mining sector.

The company’s board signed off on the Bokoni 180,000 tonnes-per-month development project following the completion of a definitive feasibility study in June 2026. The project, with an estimated capital expenditure of R15.2 billion ($925.58 million), is expected to significantly boost ARM’s platinum group metals (PGM) output over the next decade.

Bokoni to deliver long-term PGM growth

ARM acquired Bokoni Platinum Mines in 2022 and has since repositioned the asset as a cornerstone of its long-term growth strategy. Located in Limpopo on the resource-rich Bushveld Complex, Bokoni hosts one of South Africa’s largest high-grade UG2 ore bodies.

Once fully ramped up, the project is expected to produce between 350,000 and 400,000 6E PGM ounces annually. The development will be executed in phases, starting with the restart of the existing 60ktpm concentrator in the first half of 2028, followed by the commissioning of a new 120ktpm plant in the second half of 2030.

The project is projected to deliver a post-tax net present value of R5.9 billion ($359.22 million) and an internal rate of return of 28%, with a payback period of approximately 6.3 years. ARM expects the mine to reach steady-state production by 2032.

Strong fundamentals support investment

Despite the global shift toward electric vehicles, ARM remains optimistic about the long-term outlook for PGMs, citing resilient industrial demand and tightening supply.

The company noted that declining investment, aging shafts in South Africa, and falling output in other producing regions are likely to constrain supply, potentially pushing the platinum market into deficit and supporting prices.

Bokoni’s resource base of more than 329 million tonnes, with an average grade of 6.1 grams per tonne, reinforces its strategic value. Only about 13% of the resource is expected to be depleted over the initial 19-year mine plan, leaving significant upside for future expansion.

Nkomati restart revives South Africa’s nickel output

In a parallel move, ARM’s board also approved the restart of operations at the Nkomati nickel mine, marking the return of South Africa’s only primary nickel producer.

The restart project, which requires an estimated R753 million ($45.85 million) in capital, is expected to deliver strong financial returns, including a post-tax NPV of R764 million ($46.52 million) and an internal rate of return of 28.36%.

Mining operations are scheduled to resume in October 2026, with plant refurbishment beginning in July. At steady state, Nkomati is expected to produce about 56,000 tonnes of nickel concentrate annually and generate approximately R616 million ($37.5 million) in free cash flow each year.

The restart is supported by an offtake agreement with Boliden, although final conditions for the deal are still being completed.

Strategic shift toward low-cost growth

ARM, which operates across iron ore, manganese, PGMs, coal, and base metals, remains a key part of Motsepe’s business empire. As Africa’s first Black billionaire, he owns 45.9% of the company and has been strategically expanding his interests beyond mining to navigate industry challenges.

ARM said both projects align with its strategy to expand production through capital-efficient, brownfield developments while maintaining cost competitiveness.

Bokoni is expected to sit below the 50th percentile of the global PGM cost curve, strengthening ARM’s portfolio alongside its stakes in established operations such as Two Rivers and Modikwa.

With both developments moving forward, ARM is positioning itself to capitalize on tightening commodity markets while unlocking long-term value from its existing asset base.