African Rainbow Minerals (ARM) has approved a 15.2 billion rand ($927 million) phased expansion of its Bokoni platinum group metals (PGM) operation and the restart of nickel mining at its Nkomati mine, marking one of the company’s most significant investments in South Africa’s mining sector in recent years. According to CNBC Africa, the Bokoni development will add a 120,000-tonne-per-month platinum concentrator to the refurbished existing 60,000-tonne-per-month plant, with commissioning expected in 2030 and steady-state production targeted by 2032. The project is forecast to produce between 350,000 and 400,000 ounces of PGMs annually, significantly strengthening ARM’s platinum portfolio.
ARM said the investment follows the completion of a definitive feasibility study and reflects its long-term confidence in the platinum group metals market despite the growing adoption of battery electric vehicles. The company suspended operations at Bokoni in 2025 after concluding that the mine’s existing capacity was insufficient to sustain profitability. The revised development strategy adopts a phased approach, allowing production from the refurbished concentrator to begin before the larger expansion is completed, thereby reducing execution risk and improving capital efficiency.
The board also approved the restart of open-pit mining and nickel concentrate production at Nkomati, South Africa’s only primary nickel mine, following a conditional off-take agreement with Swedish metals group Boliden. ARM plans to invest approximately $46 million in the restart after acquiring full ownership of the operation in 2025, following the exit of former joint venture partner Nornickel. The mine is expected to produce around 56,000 tonnes of nickel concentrate annually, restoring a strategic source of nickel supply for global markets.
The twin approvals underscore ARM’s strategy of investing in long-life mineral assets while diversifying its production portfolio across platinum and critical minerals. Analysts say the Bokoni expansion and Nkomati restart are expected to strengthen South Africa’s mining sector, create employment opportunities, enhance export revenues, and reinforce the country’s position as a leading global producer of platinum group metals and nickel at a time of increasing demand for critical resources supporting both industrial applications and the global energy transition.
