The speakers at the event highlighted that streamlining operations and costs remains a focus in this segment, including the possible further consolidation of assets, he reported after having attended the PGMs Industry Day as a delegate.

As a result of the current price pressure, Mainama said major PGM projects being investigated are mainly for replacement rather than expansion of product supply.

One of the feasibility studies mentioned was at PGM miner Anglo American Platinum’s flagship Mogalakwena mine, with results expected in the middle of the year.

“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.

“Information shared at the PGMs Industry Day showed that the major producers have notional aggregated life-of-mine plans in excess of 200 years,” he said.

Indeed, PGMs miner Impala Platinum CEO Nico Muller posited at the event that the market for platinum, palladium, rhodium and gold, better known as 3E plus gold, will be in deficit in 2025, which should offer major support for platinum group metals pricess, highlighted Mainama.

“It was also mentioned that there were no US trade tariffs planned for PGMs, although this could change,” he adds.

Independent precious metals research consultancy Metals Focus PGM research director Wilma Swarts was bullish at the PGMs Industry Day on palladium and rhodium, while S&P Global Commodity Insights senior mining analyst Jason Holden took a similar view on the supply of palladium, highlighted Mainama.

Further, the conference’s panel on price forecasts confirmed that it is certainly premature to call the PGM segment a dying industry, he pointed out, adding that speakers also highlighted the need to strengthen market development initiatives, and to explore the opportunity to manage supply to fit demand.

Looking for Value Chain Efficiencies

There will have to be further cost curve improvements, and Mainama said value chain efficiencies continue to be an area that the sector is pursuing to improve operational performance.

“With mines’ high fixed costs, industry observers also see further consolidation as likely to optimise overheads and operational costs. Economies of scale tend to offer the best chance of reducing unit costs,” he added.

Another area of performance improvement discussed at the event, noted Mainama, was further diversification of assets in the future – a factor mentioned as a company strategy by both Sibanye-Stillwater CEO designate Richard Stewart and Muller.

“With the depletion of the Merensky reef, there is an opportunity for PGM players to extract chrome from the Upper Group reef horizon, known as UG2,” said Mainama, adding that investment in this direction offers an opportunity to diversify revenue streams for the assets.

PGM projects of various sizes, both greenfield and brownfield, are being undertaken, with SRK being involved in all aspects from initial conceptual and feasibility studies through to closure, including facets such as risk assessments, value optimisation, tailings dam designs and project reviews, he pointed out.

“Among our contributions to PGM projects are operational support audits and assessment of compliance to governance requirements,” explained Mainama, adding that these exercises identify potential risk factors as well as potential areas of improvement.



Opportunities in Green Hydrogen

Among other catalysts for investment is green hydrogen, highlighted Mainama, thereby leading South Africa’s Trade, Industry and Competition Minister Parks Tau to highlight the potential investment in the Boegoebaai export terminal.

In addition, Mainama added that the targeted export of green hydrogen is under investigation, with the Japanese market being one of the many that is currently being explored.