A concerted effort by the South African PGM mining industry to invest in market development can add significant jobs, tax revenue and foreign currency earnings to the economy, Chris Griffith, CEO of Anglo American Platinum, told delegates at the SA Investment Conference on Thursday.
“Mining creates by far the most value in the economy. Mining is where you see the best margins, the most jobs created, where the most taxes and royalties are paid,” Chris said, adding that the nearly 1:1 job creation ratio in associated industries is also unmatched in other sectors. To unlock the most value, one must ask: “How do you get more demand for PGMs so you can increase the amount of mining?”
Participating in a panel discussion which included mineral resources and energy minister Gwede Mantashe, Chris used the Chinese jewellery market as one example where joint investment by producers in marketing efforts can unlock an additional 1-million ounces of platinum demand (the equivalent ounces from 3 mines) over the next five years, adding 30,000 direct mining jobs in South Africa. An additional 30,000 jobs could be created by suppliers to the industry, he said.
Anglo American Platinum already invests significantly in market development, with $30-million invested in jewellery development in 2018, $4.2-million in building investment demand and $100-million committed to AP Ventures, which invests in companies developing new industrial applications for PGMs.
The demand outlook for platinum group metals is looking positive, Chris said, with demand for rhodium and palladium mainly driven by stricter vehicle emissions standards in a number of countries around the world. He is optimistic that platinum demand will benefit in the next few years when automakers start substituting palladium for platinum in gasoline autocatalysts.
Platinum group metals, which Chris describes as “the most amazing metals that do fantastic things for society”, have an essential role to play in lowering carbon emissions and building a green economy. “One vehicle in the 1960s released the same emissions as 100 vehicles today, and the thing that made that possible is PGMs,” Chris said.
PGMs will be critical in the hydrogen economy, which has huge potential to help decarbonise the world. Hydrogen fuel cells are particularly suited to help decarbonise heavy-haul transport, with Anglo American, in partnership with ENGIE, set to start testing the world’s largest hydrogen-powered mine haul truck at Mogalakwena next year.