Resources group Tharisa has entered into a five-year contract with Cementation Africa for underground mining development and construction at its mine in the North West, signalling a step in its transition to deeper ore extraction.
The agreement follows the first blast at the end of March, which was the start of portal development for the underground operation, with open-pit mining continuing alongside the underground build-out.
The contract is structured on an alliance model, using an open-book, cost-plus fee arrangement designed to align the interests of both parties, rather than a traditional fixed-price structure.
Tharisa CEO Phoevos Pouroulis said the deal was aimed at unlocking value from the group’s resource base.
“This agreement represents an important step in unlocking the full potential of our resource base,” he said.
According to the group, underground expansion is expected to improve operational efficiency, provide access to deeper ore bodies and extend the life of the mine.
Underground mining contractor Cementation Africa will execute the works, drawing on its experience in delivering complex mining projects.
Last month the group said it expected a global platinum supply shortfall to support miners through a period of elevated input cost inflation, driven in part by disruptions linked to the Iran war.
It has, however, reaffirmed its full-year production guidance, noting platinum demand continues to outstrip supply, keeping prices elevated.
Business Day
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