Tharisa (LSE:THS) has agreed to sell 50% of the Tharisa Mine's PGM concentrate production to Valterra Platinum from 1 January 2027, with Northam Platinum retaining its existing offtake arrangement for the remainder.
The London and Johannesburg-listed PGM and chrome producer, which operates the Tharisa Mine on the south-western limb of South Africa's Bushveld Complex, said the two companies are also collaborating to explore fine chrome recovery and beneficiation at Valterra Platinum, using Tharisa's proprietary Vulcan X technology.
The arrangement extends a relationship the two companies announced in August, when Valterra Platinum agreed a binding term sheet to purchase PGM concentrate from Tharisa's Karo Platinum project in Zimbabwe on an initial five-year term.
Tharisa said the deal supports its strategic focus on resource efficiency and value creation across the beneficiation chain, and should strengthen offtake certainty, improve recoveries and reduce waste.
"With the pilot plant complete and testing under way, we are taking a tangible step towards deploying our proprietary fine chrome recovery technology," Tharisa chief executive Phoevos Pouroulis, who, added that combining the company's technology with Valterra Platinum's downstream processing expertise should "improve recoveries and deliver sustainable value for all stakeholders."
Valterra Platinum chief executive Craig Miller said the agreement strengthens the company's third-party processing portfolio and that the chrome collaboration is "an important part of advancing opportunities to unlock value and enhance cash flow margins."
The new offtake deal lands as Tharisa works to fund and commission Karo Platinum, where cumulative investment has reached $240 million against total estimated project capital expenditure of $516 million, with first ore to the mill targeted for the fourth quarter of calendar 2027.
