Mineral Council to unlock South Africa’s long-term PGM potential

The focus the draft National Platinum Strategy for RSA is to realize the world’s largest PGM resource through developing markets, that enable the growth of the PGM mining sector. This would add about R8 trillion to South Africa’s economy by 2050, and about another 1 million direct and indirect jobs.

Strategy needs collaboration between government and industry to tackle short term challenges (electricity, security, rail, local government, local communitydevelopment) while at the same time investing in demand creation and in the long-term mining future.

A concerted and coordinated effort by the public and private sector, supported by the framework of a national strategy, is essential to enhance the short-term and ensure that the future realizes the promise.

Palladium is the most used metal to make autocatalysts, followed by platinum and rhodium – SA is the largest source of all three metals combined.

Greening the environment with PGMs, reducing carbon intensity1. PGMs’ green credentials are long-standing – autocatalysts, electrolysis and fuel cells
2. PGMs are already playing a crucial and growing role in the global energy transition to net zero. At least 30 countries have developed or are developing hydrogen strategies towards decarbonising their economies.
3. The combination of green hydrogen displacing natural gas, and fuel cell electric vehicles (FCEV) displacing internal combustion engine vehicles could result in net carbon dioxide savings of up to 11% of the Paris Agreement’s 2030 targets.
4. Annual platinum demand in 2030 from FCEVs and electrolysers of between 1.6 million ounces and 2.4 million ounces provides a growth opportunity for South Africa – the biggest source of primary platinum — of between 34% and 51% by 2030 from the current base of 4.7 million ounces.
5. Investments of more than $300bn up to 2030 in hydrogen as demand increases sevenfold up to 2050, with two thirds of hydrogen supply coming from electrolysis

Green hydrogen offers:• Significant CO2 saving potential
• Energy independence/security
• Hydrogen linked public funding and subsidy commitments of >US$790 billion
• Green hydrogen competitive with fossil fuels at current prices
• Attractive for private funding
• Platinum is a proxy for investing in hydrogen where there are limited publicly listed investment opportunities.