Ivanhoe executive chairman Robert Friedland said the company wanted to build some of the "greenest" mines in the world.
Under the memorandum of agreement with the Mogalakwena local municipality, Platreef will receive a minimum of five million litres of treated water a day for 32 years, beginning in 2022, from the town of Mokopane's new Masodi Treatment Works.
Ivanplants will provide up to US$19.6 million to the municipality to complete the Masodi plant, under the conditional agreement.
It will buy the treated wastewater at a reduced rate for the first 10Ml/day to offset a portion of the initial capital contributed, and will pay a further $2.9 million to settle Masodi's outstanding debts related to construction, giving Ivanplats the first right of refusal on all current and future treated wastewater.
Ivanplats said further treatment would be conducted at its on-site filtration plant to ensure compliance with Ivanplats' quality standards.
It would start using some treated water later this year for development and construction work after Masodi was commissioned.
The company has estimated it needs 7.5Ml/day of bulk water during the first phase of steady-state production, which would consist of 5Ml/day from Masodi and the balance from groundwater and rainwater.
"We are on course to develop Platreef into South Africa's next great platinum-group metals mine, while ensuring that we do it in a way that is environmentally responsible and resource efficient," Ivanplats managing director Dr Patricia Makhesha said.
Ivanhoe has appointed five institutions to arrange debt financing for Platreef's development, which is projected to expand over three phases up to 12 million tonnes per annum.
Shares in the company rose 5.9% yesterday to C$2.87 but remain down about 32% year-to-date, valuing it around $2.3 billion.