South African Miners Pivot to By-Product Revenue

Mining firms are adjusting project scopes in South Africa to boost income amid challenging PGM market conditions.

Updated on Oct. 26, 2026 in Financial Planning

Bold flat-color editorial illustration showing stylized geometric ore and an ingot, symbolizing industrial resource extraction and mining strategy. — South African mining firms including Southern Palladium and Platinum Group Metals are expanding by-product production to improve financial results amid declining platinum prices. AI Illustration. Upload story photo >

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Is shifting mining output to by-product metals a reliable strategy for long-term project success?

Platinum Group Metals and Southern Palladium are shifting their operational focus toward by-product metals to strengthen financial feasibility. The companies are revising project scopes in Limpopo and the Bushveld Complex to offset broader market challenges.

Why it matters

Miners are pivoting to increase reliance on metals like gold and chrome to maintain profitability as platinum group metal prices fluctuate. These strategic adjustments aim to secure the long-term viability of major South African mining projects.

The Waterberg Joint Venture T-Zone project currently yields 19% gold, while the Bengwenyama project is projected to produce 1 million tonnes of chrome annually. The capital development for the Waterberg site is estimated at R6 billion.

The players

Platinum Group Metals

This mining company focuses on projects in the Bushveld Complex and is currently refining its Waterberg Joint Venture feasibility.

Southern Palladium

The company is a resource developer managing the Bengwenyama project and optimizing its extraction technology.

Impala Platinum

As a major industry player, it maintains a 14% interest in the Waterberg project and tracks regional mining developments.

The details

Southern Palladium has implemented new milling technology at its Bengwenyama site to boost chrome output, while Platinum Group Metals is reducing the project footprint at the Waterberg Joint Venture. Both firms are also evaluating potential interest from Impala Platinum, which already holds a 14% stake in the Waterberg operations.

2020: Impala Platinum declined to increase its existing stake in the Waterberg project.
October 2026: Valterra Platinum agreed to purchase half of Tharisa's PGM concentrate over five years.
December 2026 or January 2027: Platinum Group Metals plans to publish a definitive project study.

Market Dynamics

This strategic pivot follows the persistent pattern of the PGM market's historical price volatility, which has historically necessitated structural revenue shifts. By prioritising by-product metals, these firms are adapting to the broader macroeconomic cycle affecting South African mining.

These shifts in project feasibility directly affect the net present value of mining assets, which may influence stock valuations for retail investors. Stakeholders should monitor the upcoming definitive study for specific updates on capital requirements and long-term project viability.

The takeaway

Mining companies are successfully using gold and chrome credits to insulate themselves against the volatility of primary metal markets. Diversifying output streams allows firms to sustain operations and attract investment despite uncertain commodity cycles.

What happens next

Platinum Group Metals is scheduled to release a definitive study and updated capital expenditure projections for the Waterberg Joint Venture during December 2026 or January 2027.