Modern Mining April 2022

have remained disciplined and whilst a consider able number of potential capacity expansions and mine life extending projects are planned, only a few new projects are in the pipeline. Sibanye-Stillwater is investing in mine life extension and cost reduc tion efforts rather than new projects at its PGM operations, and instead is targeting additional capi tal expenditure to acquire battery metals projects. Anglo American Platinum is investing in mine life extending projects and mechanisation with the rest of the profit windfall used to pay huge dividends. The other big producers, Impala Platinum and Northam, are competing to acquire Royal Bafokeng, which has operating mines with modest production growth plans. Current high prices should still incentivise some

with more PGMs – caused a surge in demand and prices for rhodium and palladium, with the two met als now accounting for about 70% of PGM miners’ revenue despite accounting for less than 50% of pro duction/mined volumes. Platinum prices should also now be supported by a structural shift in demand as more platinum is used in place of palladium in petrol vehicle autocatalysts. The switch should be driven by the huge price differential between the metals (palladium is currently more than double the plati num price), recent palladium deficits, and by a drive by the EU and US to cut dependence on Russian commodities. These sharp increases in revenue and profitability in the industry have led many miners to pay off debts and increase cash reserves. Despite high cash reserves, the major producers

South Africa hosts more than 80% of global PGM reserves.

April 2022  MODERN MINING  19