Tharisa Secures Major PGM Offtake Deal with Valterra Platinum

Tharisa plc has strengthened its position in Southern Africa’s platinum group metals (PGM) industry by securing a significant multi-year concentrate offtake agreement with Valterra Platinum. Announced on 15 October 2026, the agreement will see Valterra Platinum purchase 50% of the PGM concentrate produced at Tharisa Mine in South Africa, effective from 1 January 2027. Beyond securing a long-term market for its mineral production, the partnership establishes a broader framework for technological collaboration, particularly in advanced chrome recovery, mineral beneficiation, and resource efficiency. The agreement represents a further expansion of the companies' strategic relationship, combining Tharisa's mining and mineral recovery capabilities with Valterra Platinum's established processing infrastructure and technical expertise.

Under the agreement, Tharisa Minerals (Pty) Ltd, a wholly owned subsidiary of Tharisa, will supply PGM concentrate to Rustenburg Platinum Mines Limited, a subsidiary of Valterra Platinum. The arrangement will replace Sibanye-Stillwater as the purchasing partner for half of Tharisa Mine's PGM concentrate production, while Northam Platinum will retain its existing offtake agreement for the remaining 50%. This structure provides Tharisa with two established processing partners, supporting commercial continuity and greater certainty over the sale of its PGM output. The agreement has been concluded on terms comparable to the previous arrangement, allowing Tharisa to maintain its existing offtake framework while establishing a stronger commercial relationship with Valterra Platinum.

A particularly important component of the expanded partnership is the proposed application of Tharisa's proprietary Vulcan X technology to improve fine chrome recovery and mineral beneficiation at Valterra Platinum's operations. Fine chrome particles can be challenging to recover through conventional mineral processing methods, potentially resulting in valuable material being lost within processing streams or waste residues. Vulcan X is being evaluated as a technology capable of improving the recovery of these fine particles, potentially increasing mineral utilisation and reducing processing losses. Tharisa has confirmed that a pilot plant has been completed and that testing is underway, representing an important step towards assessing the technology's potential commercial application. Successful deployment could create additional opportunities for recovering value from existing mineral resources, although commercial-scale performance has yet to be demonstrated.

The latest agreement builds upon the strategic cooperation announced on 27 August 2026, when Valterra Platinum was selected as a concentrate purchase partner for Tharisa's Karo Platinum project in Zimbabwe. Located along Zimbabwe's mineral-rich Great Dyke, the Karo development represents an important component of Tharisa's regional growth strategy. By extending their relationship across the operating Tharisa Mine and the developing Karo project, the companies are establishing a wider commercial partnership covering PGM production, concentrate purchasing, downstream processing, and mineral recovery technology. This approach could allow both businesses to benefit from greater operational coordination and shared technical expertise across their Southern African activities.

Tharisa CEO Phoevos Pouroulis emphasised that the agreement provides greater certainty for the company's PGM production while supporting its efforts to advance innovative chrome recovery technologies. He highlighted the importance of combining Tharisa's proprietary processing capabilities with Valterra Platinum's downstream expertise to improve mineral recoveries and generate sustainable value. Valterra Platinum CEO Craig Miller similarly welcomed the expanded cooperation, explaining that the arrangement strengthens the company's third-party processing portfolio and creates opportunities to improve resource utilisation and cash flow margins. Both executives identified technological collaboration and operational efficiency as important elements of the partnership's long-term commercial potential.

From a broader African mining industry perspective, the Tharisa-Valterra Platinum partnership highlights the increasing importance of reliable concentrate offtake arrangements, technological innovation, and greater value extraction from existing mineral resources. For South Africa, the agreement could support the continued utilisation of established PGM processing infrastructure while encouraging investment in more efficient chrome recovery and beneficiation technologies. For Zimbabwe, the expanded commercial relationship could strengthen the long-term development prospects of the Karo Platinum project by providing access to an established concentrate purchasing partner. If the Vulcan X technology proves commercially successful, its application could also offer wider opportunities for mineral processing efficiency, waste reduction, and resource optimisation across the region. However, the scale of these benefits will depend on successful technical testing, commercial implementation, market conditions, and the operating performance of the participating projects.

Mini-Glossary

• Platinum Group Metals (PGMs): A group of six valuable metals, including platinum, palladium, and rhodium, used in automotive catalysts, industrial processes, electronics, and other applications.
• Offtake Agreement: A commercial contract in which a buyer agrees to purchase a specified portion of a mining company's future production.
• PGM Concentrate: A mineral-rich product obtained after processing mined ore to increase the concentration of valuable platinum group metals.
• Mineral Beneficiation: The processing of mined materials to increase their economic value by improving their quality, purity, or mineral concentration.
• Fine Chrome Recovery: The extraction of small chromite particles that may be difficult to capture using conventional mineral separation techniques.
• Pilot Plant: A small-scale processing facility used to test and evaluate a technology before potential commercial deployment.
• Downstream Processing: Industrial activities that transform mined minerals or concentrates into more refined, higher-value products.
• Cash Flow Margin: A measure of how much cash a business generates relative to its revenue, indicating its operational financial efficiency.