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Platinum Group Metals (TSX: PTM, NYSE: PLG) has signed a memorandum of understanding with Ajlan & Bros Company for Mining and the Ministry of Investment of Saudi Arabia to establish a PGM smelter and base metal refinery in Saudi Arabia. The agreement, part of the Global Supply Chain Resilience Initiative, supports Saudi Arabia’s Vision 2030 to develop its mining sector. A recent market study concluded that end-of-life auto catalysts and petrochemical catalysts from the Gulf Region could supplement the processing of Waterberg PGM concentrate. The project requires long-term approval for exporting unrefined precious metals from South Africa.
I Metalli del Gruppo Platino (TSX: PTM, NYSE: PLG) ha firmato un memorandum d’intesa con Ajlan & Bros Company for Mining e il Ministero degli Investimenti dell’Arabia Saudita per stabilire una fonderia di PGM e una raffineria di metalli di base in Arabia Saudita. L’accordo, parte dell’Iniziativa per la Resilienza della Catena di Fornitura Globale, supporta la Visione 2030 dell’Arabia Saudita per sviluppare il suo settore minerario. Uno studio di mercato recente ha concluso che i catalizzatori per auto a fine vita e i catalizzatori petrochimici della regione del Golfo potrebbero integrare il trattamento del concentrato di PGM di Waterberg. Il progetto richiede l’approvazione a lungo termine per l’esportazione di metalli preziosi non raffinati dal Sudafrica.
Los Metales del Grupo Platino (TSX: PTM, NYSE: PLG) ha firmado un memorándum de entendimiento con Ajlan & Bros Company for Mining y el Ministerio de Inversión de Arabia Saudita para establecer una fundición de PGM y una refinería de metales básicos en Arabia Saudita. El acuerdo, parte de la Iniciativa de Resiliencia de la Cadena de Suministro Global, apoya la Visión 2030 de Arabia Saudita para desarrollar su sector minero. Un estudio de mercado reciente concluyó que los catalizadores de automóviles al final de su vida útil y los catalizadores petroquímicos de la región del Golfo podrían complementar el procesamiento del concentrado de PGM de Waterberg. El proyecto requiere aprobación a largo plazo para exportar metales preciosos no refinados desde Sudáfrica.
플래티넘 그룹 금속 (TSX: PTM, NYSE: PLG)은 Ajlan & Bros Mining 회사 및 사우디 아라비아 투자부와 함께 사우디 아라비아에 PGM 제련소와 비철 금속 정유소를 설립하기 위한 양해각서를 체결했습니다. 이번 협정은 글로벌 공급망 회복력 이니셔티브의 일환으로, 사우디 아라비아의 비전 2030을 지원하여 광업 부문을 발전시키고자 합니다. 최근의 시장 연구에 따르면, 걸프 지역의 자동차 배기가스 촉매와 석유화학 촉매가 Waterberg PGM 농축물의 처리를 보완할 수 있다고 결론지었습니다. 이 프로젝트는 남아프리카에서 정제되지 않은 귀금속을 수출하기 위한 장기 승인이 필요합니다.
Métaux du Groupe Platine (TSX: PTM, NYSE: PLG) a signé un protocole d’accord avec Ajlan & Bros Company for Mining et le Ministère de l’investissement d’Arabie Saoudite pour établir une fonderie de PGM et une raffinerie de métaux de base en Arabie Saoudite. L’accord, qui fait partie de l’Initiative de résilience de la chaîne d’approvisionnement mondiale, soutient la Vision 2030 de l’Arabie Saoudite pour développer son secteur minier. Une étude de marché récente a conclu que les catalyseurs automobiles en fin de vie et les catalyseurs pétrochimiques de la région du Golfe pourraient compléter le traitement du concentré de PGM de Waterberg. Ce projet nécessite une approbation à long terme pour l’exportation de métaux précieux non raffinés d’Afrique du Sud.
Platinmetalle (TSX: PTM, NYSE: PLG) hat ein Memorandum of Understanding mit Ajlan & Bros Company for Mining und dem Ministerium für Investitionen von Saudi-Arabien unterzeichnet, um ein PGM-Hüttenwerk und eine Basismetallraffinerie in Saudi-Arabien zu errichten. Die Vereinbarung ist Teil der Initiative zur Resilienz der globalen Lieferkette und unterstützt die Vision 2030 Saudi-Arabiens zur Entwicklung seines Bergbaus. Eine aktuelle Marktstudie kam zu dem Schluss, dass Altkatalysatoren für Autos und petrochemische Katalysatoren aus der Golfregion die Verarbeitung des Waterberg-PGM-Konzentrats ergänzen könnten. Das Projekt benötigt eine langfristige Genehmigung für den Export von unraffinierten Edelmetallen aus Südafrika.
Positive
- Strategic partnership with Saudi Arabian government through MISA for potential financial support
- Completed market study confirms viable additional PGM sources from Gulf Region
- 50:50 joint venture opportunity with Ajlan & Bros following completion of Smelter DFS
Negative
- Project depends on obtaining long-term approval for precious metals export from South Africa
- Single-source dependency risk for PGM concentrate from Waterberg Project
Insights
The MOU with Saudi Arabia’s MISA marks a significant strategic development for PLG’s Waterberg Project. The proposed PGM smelter and base metal refinery in Saudi Arabia represents a novel approach to PGM processing, potentially creating a new hub outside traditional Southern African locations. The completion of the market study revealing additional feedstock opportunities from auto and petrochemical catalysts in the Gulf Region is particularly noteworthy, as it could provide operational flexibility and risk mitigation.
However, the project faces a critical regulatory hurdle – securing long-term approval for exporting unrefined precious metals from South Africa, which has historically preferred local beneficiation. The 50:50 joint venture structure with Ajlan & Bros provides strong local partnership in Saudi Arabia, aligning with Vision 2030’s mining sector development goals. The potential MISA financial support could significantly improve project economics, though specific terms remain undefined.
Vancouver, British Columbia and Johannesburg, South Africa–(Newsfile Corp. – November 26, 2024) – Platinum Group Metals Ltd. (TSX: PTM) (NYSE American: PLG) (“Platinum Group” or the “Company“) reports that a memorandum of understanding (“MOU“) has been executed between the Company, Ajlan & Bros Company for Mining, a subsidiary of Ajlan & Bros Holding (“Ajlan“), and the Ministry of Investment of Saudi Arabia (“MISA“) as a part of the Global Supply Chain Resilience Initiative (“GSCRI“), for the setup of a proposed platinum group metals smelter (“PGM Smelter“) and base metal refinery (“BMR“) to be located in Saudi Arabia. The Company’s Vice President, Corporate Development, Kris Begic, executed the MOU on behalf of the Company at a signing ceremony held in Riyadh on November 26, 2024 during the 28th World Investment Conference.
According to the terms of the MOU, MISA will offer strategic guidance and study potential financial support to the proposed PGM Smelter and BMR to be located in Saudi Arabia and the Waterberg Project located in South Africa. The establishment of a PGM Smelter and BMR in Saudi Arabia are being considered due to their potential to support the Kingdom of Saudi Arabia’s Vision 2030 initiative to develop the mining and minerals industry to become the third pillar of the Kingdom’s gross domestic product.
The MOU with MISA aligns with initiatives already underway between Ajlan and Platinum Group, who together entered a Cooperation Agreement (the “Cooperation Agreement“) in December 2023 to study the establishment of a PGM Smelter and BMR in Saudi Arabia. The Cooperation Agreement encompasses three phases: a global PGM concentrate market study (the “Market Study“), a Definitive Feasibility Study (“Smelter DFS“) for the construction and operation of PGM Smelter and BMR in Saudi Arabia, and an option to form an incorporated 50:50 joint venture following the completion of the Smelter DFS. The Smelter DFS will assume the export of PGM concentrate from the Waterberg Project in South Africa to a port facility in Saudi Arabia.
The Market Study was completed recently by a globally recognized consulting group specializing in PGMs and associated base metal by-products. The objective of the study was to identify potential sources of PGM bearing concentrate or material that could augment the processing of Waterberg PGM concentrate and reduce the risk of operations being dependent upon concentrate from one source. The Market Study concluded that end of life auto catalysts and petrochemical catalysts, sourced from the Gulf Region, could augment the operation of a Waterberg focused PGM Smelter and BMR in Saudi Arabia. Other sources of mined PGM concentrate from Southern Africa, if available, may also be considered over the longer term.
A key requirement before a Waterberg focused PGM Smelter and BMR can be constructed and operated in Saudi Arabia will be a long-term approval for the export of unrefined precious metals in concentrate from South Africa. Platinum Group has been working with the Government of South Africa to identify local beneficiation opportunities and to analyze the possible impact of exporting concentrate on the value chain.
About The Global Supply Chain Resilience Initiative
GSCRI is a national initiative launched in 2022 as part of the National Investment Strategy with the ambitious objectives of strengthening the position of the Kingdom of Saudi Arabia in the global economy, strengthening the resilience of global value chains, mitigating the impact of global disruptions, and attracting world-scale export-oriented investments by leveraging the Kingdom’s competitive advantages and unique propositions.
About The Ministry of Investment of Saudi Arabia
The ongoing transformation of Saudi Arabia under Vision 2030 is unlocking new opportunities in the Kingdom. Vision 2030 seeks to drive economic growth in Saudi Arabia and diversify the economy away from a reliance on oil, thereby achieving a positive impact through investment and ensuring efficiency and accountability at all levels to build a vibrant society, and a thriving economy in an ambitious nation. MISA is facilitating access to these opportunities by developing a reliable, robust, business-friendly ecosystem, working across government to ensure investors and businesses are supported through their investment journey.
About Ajlan & Bros Company for Mining
Ajlan & Bros Company for Mining is a subsidiary of Ajlan & Bros Holding, a large, diversified holding company. Ajlan is actively seeking exploration and mining project investments to provide feedstock and partnership opportunities to build smelting, refining/and processing capacity and partnering with leading companies as financial investors in transition metals, precious and platinum group metals.
About Platinum Group Metals Ltd. and Waterberg Project
Platinum Group Metals Ltd. is the operator and majority owner of the Waterberg Project, a bulk underground palladium and platinum deposit located in South Africa. The Waterberg Project was discovered by Platinum Group and is being operated in joint-venture with Impala Platinum Holdings Ltd., Mnombo Wethu Consultants (Pty) Ltd., Japan Organization for Metals and Energy Security and Hanwa Co. Ltd.
On behalf of the Board of
Platinum Group Metals Ltd.
Frank R. Hallam
President, CEO and Director
Disclosure
The TSX and the NYSE American have not reviewed and do not accept responsibility for the accuracy or adequacy of this news release, which has been prepared by management.
This news release contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of U.S. securities laws (collectively “forward-looking statements”). Forward-looking statements are typically identified by words such as: “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may”, “plans”, “would”, “will”, “could”, “can”, “postulate” and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements regarding the potential PGM smelter and BMR in Saudi Arabia, the studies to be undertaken in connection therewith, potential financial support from MISA, required regulatory approvals and the potential benefits from the foregoing; any future development of and production of concentrate from the Waterberg Project; and the Company’s other future plans and expectations. Although the Company believes any forward-looking statements in this news release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct.
The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance and that actual results may differ materially from those in forward-looking statements as a result of various factors, including the Company’s inability to generate sufficient cash flow or raise additional capital, and to comply with the terms of any new indebtedness; additional financing requirements; and any new indebtedness may be secured, which potentially could result in the loss of any assets pledged by the Company; the Company’s history of losses and negative cash flow; the Company’s properties may not be brought into a state of commercial production; uncertainty of estimated production, development plans and cost estimates for the Waterberg Project as reported in the 2024 definitive feasibility study update (the “2024 DFS”); discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs, between actual and estimated metallurgical recoveries and between estimated and actual production; fluctuations in the relative values of the U.S. Dollar, the South African Rand and the Canadian Dollar; volatility in metals prices; the uncertainty of alternative funding sources for Waterberg JV Resources (Pty) Ltd. (“Waterberg JV Co.”); the Company may become subject to the U.S. Investment Company Act; the failure of the Company or the other shareholders to fund their pro rata share of funding obligations for the Waterberg Project; any disputes or disagreements with the other shareholders of Waterberg JV Co. or Mnombo; the ability of the Company to retain its key management employees and skilled and experienced personnel; conflicts of interest; litigation or other administrative proceedings brought against the Company; actual or alleged breaches of governance processes or instances of fraud, bribery or corruption; exploration, development and mining risks and the inherently dangerous nature of the mining industry, and the risk of inadequate insurance or inability to obtain insurance to cover these risks and other risks and uncertainties; property and mineral title risks including defective title to mineral claims or property; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada and South Africa; equipment shortages and the ability of the Company to acquire necessary access rights and infrastructure for its mineral properties; environmental regulations and the ability to obtain and maintain necessary permits, including environmental authorizations and water use licences; extreme competition in the mineral exploration industry; delays in obtaining, or a failure to obtain, permits necessary for current or future operations or failures to comply with the terms of such permits; risks of doing business in South Africa, including but not limited to, labour, economic and political instability and potential changes to and failures to comply with legislation; pandemics and other public health crises; the Company’s common shares may be delisted from the NYSE American or the TSX if it cannot maintain compliance with the applicable listing requirements; rising global inflation and increased potential supply chain disruptions; international conflict and other geopolitical tensions and events; and other risk factors described in the Company’s most recent AIF and Form 40-F, and other filings with the U.S. Securities and Exchange Commission (“SEC”) and Canadian securities regulators, which may be viewed at www.sec.gov and www.sedarplus.ca, respectively. Proposed changes in the mineral law in South Africa, if implemented as proposed, may have a material adverse effect on the Company’s business and potential interest in projects. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether because of new information, future events or results or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/231455
FAQ
What is the purpose of Platinum Group Metals’ (PLG) MOU with Saudi Arabia?
The MOU aims to establish a PGM smelter and base metal refinery in Saudi Arabia, supporting the country’s Vision 2030 initiative to develop its mining sector as the third pillar of GDP.
What were the findings of PLG’s market study for the Saudi Arabian smelter project?
The market study found that end-of-life auto catalysts and petrochemical catalysts from the Gulf Region could supplement Waterberg PGM concentrate processing at the proposed facility.
What is the ownership structure of PLG’s proposed Saudi Arabian smelter project?
Following the completion of the Smelter DFS, there is an option to form a 50:50 joint venture between Platinum Group Metals and Ajlan & Bros Company.
