Modern Mining December 2022

Platinum deficit of 303 koz forecast in 2023 as 2022 surplus reduces

Palabora Mining Company (PMC) has part nered with Mzansi Energy Consortium (Mzansi Energy) to develop a 132 MWp solar photovoltaic (PV) plant and battery energy storage system (BESS) capable of storing 310 MWh of electricity. The power plant, branded Marula Green Power, is expected to be rolled out over two stages, with Stage 1 being construction and Stage 2, operation and maintenance. The project is expected to reach financial close in the second quarter of 2023 and commence operations in the second quarter of 2024. The World Platinum Investment Council (WPIC) recently published its Platinum Quarterly for the third quarter of 2022, with a revised forecast for 2022 and first fore cast for 2023. The market is forecast to be in a defi cit of 303 koz in 2023 as global platinum demand is expected to increase by 19% (to 7 770 koz) while supply will increase by just 2% (to 7 466 koz). Supply constraints, combined with increased bar and coin demand, have seen the market surplus forecast for 2022 revised downwards by 17% (-170 koz) to 804 koz. The profound swing in market balances between the 2022 surplus and the 2023 deficit is forecast to be more than 1.1 moz. In addition, exceptionally strong import volumes into China continued throughout the third quarter, contributing to ongo ing physical market tightness despite the global surplus. Like previous quarters this year, these imports were significantly above identified demand in China and

WPIC forecasts platinum deficit for 2023. were met largely by sizeable flows from platinum ETFs and exchange stocks. Year to date, these excess imports into China,

which are not captured in published supply and demand data, are already 1.2 moz – far in excess of the forecast 2022 surplus. 

Palabora Mining Company appoints IPP

in May 2023. “Mzansi Energy wi l l design, finance, install, oper ate and maintain the plant for 12 years”. “The p l an t wi l l be based within the municipal jurisdiction of Ba-Phalaborwa, Limpopo, about 20 km from the mine. The location is strategically chosen to allow for

Once deployed, the project will be one of South Africa’s largest private Independent Power Producers (IPPs) and is intended to provide the mine with security of supply and affordable energy, which will result in significant cost savings. Wessel Wessels, CEO of Journey2Green (a founding partner in Mzansi Energy), says a long-term Power Purchase Agreement (PPA) will be finalised between the parties at the end of a Detailed Feasibility Study in the next six to eight months, commencing in October 2022 and is expected to end

Palabora Mining Company appoints Mzansi Energy to develop solar photovoltaic plant.

direct supply to the mine without connec tion to the Eskom grid,” Wessels explains. 

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