Mining Technology announced this week that Tharisa Minerals has awarded a five-year contract to Cementation Africa for the development and construction of underground mining operations at the Tharisa Mine in South Africa. This strategic partnership marks a pivotal shift in Tharisa’s mining approach, as it transitions from its existing open-pit operations to incorporate underground mining techniques.
Transitioning to Underground Mining: A Strategic Shift
Tharisa’s decision to engage Cementation Africa for its underground development is a significant strategic shift aimed at extending the life of its flagship mine. The Tharisa Mine, known for its production of platinum group metals (PGMs) and chrome, has primarily been an open-pit operation since its inception. As surface resources become increasingly depleted, the move underground is a logical evolution to sustain production levels.
This transition comes at a time when PGMs are experiencing fluctuating market conditions. According to the latest data from the World Platinum Investment Council, global demand for PGMs is expected to grow modestly through 2026, driven by increased industrial applications and a gradual recovery in automotive demand. By securing a reliable contractor like Cementation Africa, Tharisa is positioning itself to capitalize on these market opportunities by ensuring consistent supply and potentially increasing its production capabilities.
Historical Context: Tharisa’s Growth and Market Position
Since its initial public offering on the Johannesburg Stock Exchange in 2008, Tharisa has grown to become a significant player in the PGM and chrome markets. The company’s integrated business model, encompassing mining, processing, and marketing of its products, has allowed it to weather market volatility over the years. Tharisa’s ability to adapt its operational strategy, as evidenced by this new underground venture, underscores its commitment to maintaining a competitive edge.
Historically, Tharisa has focused on optimizing its open-pit operations to maximize output and efficiency. The company’s last annual report, filed in September 2025, highlighted a 4% year-on-year increase in chrome concentrate production, despite challenges posed by geopolitical tensions and energy supply disruptions in South Africa. The expansion into underground mining is expected to further enhance Tharisa’s resilience and production capacity.
Implications for the Mining Industry and Investors
The partnership with Cementation Africa signals a broader trend within the mining industry towards underground operations, particularly as surface reserves become less viable. This shift not only prolongs the life of existing mines but also reduces environmental impacts typically associated with open-pit mining. For investors, Tharisa’s move could indicate a robust long-term strategy aimed at sustaining profitability and growth.
From an industry perspective, the success of Tharisa’s underground operations could serve as a model for other mining companies facing similar challenges. The integration of advanced underground mining technologies, combined with Cementation Africa’s expertise, may enhance operational efficiencies and safety standards, setting new benchmarks for the industry.
For Tharisa, the transition to underground mining is not without risks. The initial capital expenditure required for underground development is substantial, and operational complexities may pose challenges in the early stages. However, the potential for increased resource recovery and extended mine life could outweigh these risks, offering substantial returns over the long term.
As Tharisa embarks on this new phase, the mining community will be closely monitoring its progress. With the global demand for PGMs poised for growth and the challenges of resource depletion looming, Tharisa’s strategic pivot could very well define its trajectory in the coming years. Investors and industry stakeholders alike will be keen to see how this development unfolds, providing insights into the future of mining operations in the region and beyond.</p
Source: Mining Technology
