Modern Mining July 2022

currently is only around 5 million oz and South Africa had estimated reserves of around 63,000 metric tons of platinum group metals late last year. By all accounts, South Africa is in the pound seats to boost GDP with the combination of the higher prices for PGMs and its position as the world leader in platinum supply. Unfortunately, the outlook isn’t entirely as rosy as it seems. South Africa faces problems that inhibit growth and many are structural, including an insufficient electricity supply and onerous regulatory burdens with excessive red tape. In fact, in his address at the 2022 Investing in African Mining Indaba, President Cyril Ramaphosa acknowledged the need to fix the regulatory and administrative problems that have festered in the mining sector. In addition, political instability and community unrest, which often leads to the closure of roads to various mining operations, have now also become a concern as investors worry about another bout of serious civil unrest. As a country, we cannot rely on commodities to solve chronic structural problems, labour market challenges, and lack of dynamism outside of the mining sector. Through platinum mining, there is still an oppor tunity to breathe new life into the economy by embracing the movement toward sustainability, green economies and the fourth industrial revolution. The metal is a key component of catalytic converters in hydrogen fuel cells. Europe is already working on an energy transition with large scale deployment of hydrogen fuel cells and other renewable energy sources until 2050. Growing the continent’s green economy and greater adoption of green energy is vital to reduce Europe’s reliance on gas imports. This strategic acceleration of the growth of the hydrogen economy has a direct positive impact on platinum prices as demand for PGMs grows. At the Investing in African Mining Indaba, President Ramaphosa also spoke of South Africa’s Hydrogen Strategy, which is aimed at “stimulating and guiding innovation along the value chain of hydrogen and fuel cell technologies”. It is also helpful that investors are keenly aware of platinum’s role in developing hydrogen economies that will be drivers

Merensky Primary Mill.

of achieving net-zero carbon emission targets. Sustainable management of the mining and com modity sector can fuel global economic growth while reducing the environmental footprint of human activ ities, and it will be critical in providing opportunities for decent employment, business development and increased fiscal revenues. Looking at the remainder of 2022 and head ing into 2023, commodity prices are expected to remain well above the most recent five-year aver age. Although the commodities market is somewhat volatile and it’s challenging to predict when or how things will change, the current situation is a boon for our nation’s mining sector and the hope is that we can take this opportunity to position South Africa’s economy to grow with a boost from PGMs’ gain.  DISCLAIMER: Phathutshedzo Netshitangani is act ing plant metallurgist at Pilanesberg Platinum Mine (PPM). The opinions expressed in this article are those of the author and should not be interpreted as expressing those of PPM.

Primary Mill Discharge Screen.

July 2022  MODERN MINING  11