With depressed platinum group metal (PGM) prices, there is plenty of scope for optimism and opportunity, it emerged at last month's PGM Industry Day in Johannesburg.
According to delegate Joseph Mainama, partner and principal mining engineer at SRK Consulting South Africa (SA), speakers at the event highlighted that streamlining of operations and costs remains a focus in this segment, and possibly some further consolidation of assets.
As a result of the current price pressure, major PGM projects being investigated are mainly for replacement rather than expansion of product supply, said Mainama. One of the feasibility studies mentioned was at Anglo American Platinum's flagship Mogalakwena mine, with results expected in the middle of the year.
Price Support to Come
"The future outlook is more positive, however, as primary supply is expected to decline over the coming decade, with favourable impacts on the metals' prices, " said Mainama. "Information shared at the PGMs Industry Day showed that the major producers have notional aggregated life of mine plans in excess of 200 years."
Indeed, Impala Platinum CEO Nico Muller argued that the market for platinum, palladium, rhodium + gold (3E - the three key elements of PGMs) will be in deficit in 2025, which should offer major support for metal prices.
"It was also mentioned that there were no tariffs planned for PGMs, although this could change," said Mainama. "Metals Focus director of PGM research Wilma Swarts was bullish on palladium and rhodium, while S&P Global Commodity Insights senior mining analyst Jason Holden took a similar view on the supply of palladium."
