African Rainbow Minerals Commits $973 Million to Expand Platinum and Restart Nickel Production

South African mining company African Rainbow Minerals (ARM) has approved one of its largest capital investment programmes in recent years, committing approximately R15.2 billion (US$927 million) to expand its Bokoni platinum group metals (PGM) operation while allocating an additional US$46 million to restart nickel production at the Nkomati mine.

The decision signals renewed confidence in the long-term outlook for both platinum group metals and nickel, despite ongoing changes in global automotive and battery technologies.

The Bokoni expansion will be implemented in phases and includes the construction of a new 120,000-tonne-per-month concentrator, alongside the refurbishment of the existing 60,000-tonne-per-month processing plant. Construction is expected to continue over the next several years, with commissioning targeted for 2030.

Once fully operational, Bokoni is expected to reach steady-state production by 2032, delivering between 350,000 and 400,000 ounces of platinum group metals annually. The additional capacity is expected to significantly strengthen ARM’s platinum portfolio while improving operational efficiencies and reducing unit production costs.

ARM temporarily suspended mining at Bokoni in mid-2025 after determining that the mine’s existing production scale could no longer generate sustainable returns. The new investment is designed to transform the operation into a larger, lower-cost producer capable of competing in a changing global market.

Although electric vehicles continue to reshape the automotive industry, ARM believes platinum group metals will remain strategically important. Platinum, palladium and rhodium continue to play a vital role in emissions control systems for internal combustion and hybrid vehicles, while platinum is also emerging as a key material for hydrogen fuel cell technologies and the growing green hydrogen economy.

Alongside the platinum investment, ARM will also restart operations at its Nkomati nickel mine, marking the return of one of South Africa’s key nickel-producing assets after several years on care and maintenance.

The company plans to resume open-pit mining and nickel concentrate production following the signing of a conditional off-take agreement with Swedish metals company Boliden. ARM expects Nkomati to produce approximately 56,000 tonnes of nickel concentrate each year, creating new opportunities as demand for battery minerals continues to grow.

Nkomati was placed on care and maintenance in 2021 following a prolonged period of low nickel prices and rising operating costs. After acquiring full ownership of the mine in 2025, ARM has moved quickly to reposition the asset for future growth as global demand for nickel strengthens, driven by electric vehicle batteries, stainless steel manufacturing and energy storage technologies.

The combined investments at Bokoni and Nkomati demonstrate South Africa’s continued importance as a global supplier of critical minerals. Beyond increasing production, the projects are expected to generate employment, stimulate local procurement and support economic activity across mining communities.

As countries accelerate the transition toward cleaner energy technologies while maintaining demand for conventional industrial metals, investments in platinum and nickel are becoming increasingly important. ARM’s latest expansion strategy positions the company to benefit from both traditional industrial markets and the emerging clean energy economy.

Industry analysts believe the projects could reinforce South Africa’s position as one of the world’s leading producers of platinum group metals while strengthening its role in the rapidly expanding critical minerals supply chain.