Modern Mining July 2022

COMMODITIES OUTLOOK

PPM plant.

PGMs can be a win for the economy By Phathutshedzo Netshitangani: acting plant metallurgist at PPM

In recent months, rating agencies Moody’s and S&P Global both upgraded South Africa’s credit rating outlook thanks to strong commodity prices boosting the country’s income. Although mining output contracted in the first quarter of the year, it is still a key contribu tor to the economy because of the resilient performance of metals.

T he war in Ukraine has dealt a major shock to commodity markets, altering global patterns of trade, production and consumption in ways that will keep prices at historically high levels until the end of 2024, according to the World Bank’s latest Commodity Markets Outlook report. As a major net exporter of minerals and net importer of oil, commodity prices remain important for South Africa. However, solving chronic structural issues and strengthening investment — including for eign direct investment — will be critical to propelling growth and creating jobs. Platinum group metals (PGMs) are used in the industrial and manufacturing markets, especially in vehicle pollution control devices. Technological changes influence the supply of a commod ity because advanced and improved technology reduces the cost of production, which raises the profit margin. This motivates the seller to increase supply.

As the global economy rebounds from the Covid‑19 pandemic, and looking at platinum’s great future in the renewable energy market, platinum’s price is also likely to rebound. It’s South Africa’s time to make hay while the sun shines on PGMs. There are enough platinum group element depos its in the Bushveld Complex in South Africa to supply world demand for many decades or even a century using current mining techniques. Demonstrated research on reserves and resources published by mining companies makes detailed calculations up to a maximum of about twenty years ahead, but there is abundant and adequate geological evidence that these deposits continue far beyond where mining companies have proven, according to rigorous inter national reporting codes. For each one kilometre of depth into the Earth in the Bushveld Complex, there is an estimated 350 million oz of platinum. As a comparison, annual production of platinum from the Bushveld Complex

Phathutshedzo Netshitangani.

PPM Process Plant.

10  MODERN MINING  July 2022