Southern Palladium’s latest DFS metallurgical tests reveal a dramatic jump in chromite recovery to 85.6%, alongside improved platinum group metal grades and recoveries, potentially reshaping project economics.
- Chromite recovery surges from 30% to 85.6%
- PGM recovery improves to 87.6% with higher concentrate grades
- Dense Media Separation and staged flotation optimise processing
- Coarser grind size reduces energy use and boosts recoveries
- DFS completion targeted for Q4 2026
Major Leap in Chromite Recovery
Southern Palladium (ASX:SPD) has unveiled metallurgical results from its Definitive Feasibility Study (DFS) for the Bengwenyama PGM Project that could substantially enhance the project’s value. The standout figure is an 85.6% overall chromite recovery at a concentrate grade of 42.2% Cr2O3, a striking improvement from the 30% recovery assumed in the earlier Prefeasibility Study (PFS). This leap is largely credited to adopting a coarser grind size of 30% passing 75 microns, which optimises liberation of chromite crystals.
This improvement implies a potential chrome concentrate output of approximately 1.054 million tonnes per annum at full production, compared with just 0.35 million tonnes per annum estimated previously. The enhanced chromite recovery is expected to generate significant additional revenue, especially given South African chrome concentrates trade around USD 320 per tonne CIF as of May 2026.
PGM Recoveries and Concentrate Quality Also Advance
Alongside chromite, the project’s platinum group metals (PGM) recovery has also improved, rising to 87.6% from the PFS assumption of 85.3%. Notably, the PGM concentrate grade is estimated at 404.4 grams per tonne (g/t) 3E (platinum, palladium, gold), a fourfold increase on the PFS figure of 100g/t 4E. This premium concentrate quality enhances the appeal to large-scale smelters and refineries, particularly on South Africa’s Western Limb.
The metallurgical results reveal a prill split skewed towards platinum at 44.8%, followed by palladium at 34.4%, which could translate into a higher weighted-average basket price for the 6E PGM suite compared to previous assumptions. The concentrate mass pull is estimated at 1.2%, balancing grade and recovery to optimise downstream processing.
Optimised Processing Flowsheet with Cost Benefits
The DFS testwork incorporated conventional yet finely tuned processing techniques, including Dense Media Separation (DMS) pre-concentration, interstage chromite recovery via spirals, and staged flotation circuits. DMS effectively rejects waste material ahead of milling and flotation, boosting feed grade from 5.2g/t to 7.2g/t 3E PGM and reducing downstream processing volumes.
Interstage chromite removal not only lifts chromite recovery but also improves PGM concentrate quality and lowers environmental costs by reducing chromite in tailings. The adoption of a coarser grind size reduces overgrinding and energy consumption, supporting potential capital and operating cost savings. Importantly, Southern Palladium emphasises that no novel technologies are being deployed; rather, the project benefits from optimising well-established industry methods.
Robust Testwork Underpins DFS Confidence
Testwork was conducted by Maelgwyn Mineral Services with chemical analyses from MAK Analytical and SGS Randfontein laboratories. The results confirm that the Bengwenyama orebody responds well to the chosen beneficiation flowsheet, delivering fast flotation kinetics and high recoveries in both primary and secondary circuits.
Southern Palladium’s Managing Director Johan Odendaal highlighted that the coarser grind size not only improved chromite recovery but also maintained or enhanced PGM recovery, a combination that bodes well for project economics. The testwork outcomes will feed into final process design, equipment sizing, and cost modelling as the DFS progresses toward completion in the fourth quarter of 2026.
Environmental and Operational Considerations
Besides metallurgical gains, the improved chromite recovery and reduced chromite content in tailings may lower environmental liabilities related to tailings storage facilities. The project benefits from a well-understood processing route, mitigating technical risks and supporting a practical development pathway.
With the DFS on track, investors will be keen to see how these metallurgical advances translate into capital expenditure estimates, operating costs, and ultimately, project valuation. The improved concentrate grades and recoveries could boost revenue forecasts, but the final economic assessment awaits the DFS completion.
Bottom Line?
Southern Palladium’s metallurgical breakthroughs could reshape Bengwenyama’s economics, but the market will await the full DFS to gauge capital and operating cost impacts.
Questions in the middle?
- How will the improved chromite recovery affect Bengwenyama’s capital expenditure and operating cost profile?
- What are the implications of the higher platinum proportion in the prill split for offtake negotiations and pricing?
- How might environmental permitting and tailings management evolve with the reduced chromite content in tailings?