African Rainbow Minerals (ARM), the mining group controlled by South African billionaire Patrice Motsepe, has halted operations at its Bokoni platinum mine in Limpopo following steep losses and mounting costs.
The company, which reported a sharp 47% decline in headline earnings to R2.7 billion ($154 million) for the year ended June 30, 2025, said the shutdown will allow it to redesign a viable mining plan. Basic earnings also tumbled, falling to R330 million ($19 million) from R3.1 billion ($177 million) a year earlier.
ARM booked a R2.2 billion ($125 million) impairment on Bokoni, citing production delays and a shift in mining methods. Despite a 62% increase in output to 45,579 ounces, soaring cash costs of $2,051 per ounce meant the mine could not achieve sustainable economies of scale.
The Bokoni asset, acquired from Anglo American Platinum and Atlatsa Resources in 2022 for R3.5 billion ($200 million), had already been placed under care and maintenance since 2017 due to persistent losses. ARM initially pursued an “early ounces” plan using an existing concentrator while preparing for a larger 240,000-ton-per-month expansion. However, the slump in platinum group metal prices has forced the company to reconsider its approach.
ARM is now conducting a feasibility study into a smaller 120,000-ton-per-month project, which could later be scaled up, with results expected in early 2026.
The group, founded in 1997 and now one of South Africa’s leading diversified miners, is under wider pressure from weak commodity prices. It has also announced job cuts and plans to shut its unprofitable Cato Ridge Works plant, reflecting the broader challenges facing the country’s mining sector.
Motsepe, who owns nearly 46% of ARM, remains South Africa’s first Black billionaire and a key figure in the global mining industry. Over the years, he has broadened his investments into financial services, energy, and sports, positioning himself to withstand the volatility of commodity markets.
