2024-10-30 23:10:00
In South Africa, platinum producers are in a very bad situation. The prices of palladium and rhodium, metals in less demand with the transition to electric vehicles, have seen their prices plummet, after having reached peaks. The bubble bursts and turns against the mining groups producing these precious metals, which employ more than a third of the employees in the mining sector in South Africa, the world’s leading producer of platinoids.
The fall in platinum prices has forced several large mining groups to restructure over the past two years. South Africa. Well closures, job losses… The Sibanye Stillwater company had to let go of 12,000 of its 80,000 employees. “ From 2023, we have seen a drop in the prices of these raw materials, the main platinumoids which are platinum, palladium and rhodium, explains Charl Keyter, group financial director. And I think a lot of that is because of the widely held view that everyone is going to turn to electric vehicles. »
Platinoids victims of the success of the electric car
These platinoids are in fact mainly used in the automobile industry, to make catalytic converters for thermal cars. The pandemic of Covid-19then the invasion of Ukraine by Russia, the second largest producer of these metals, had pushed many manufacturers to stock up with South African mines, causing prices to explode.
« During Covid, we saw the price of platinum group metals rise to levels never imagined. Up to three times higher than their previous all-time highrecalls Peter Major, sector analyst. Now that these prices have fallen and returned to more normal levels, this puts the industry under great pressure, as there have been big wage increases, large investment projects, and very expensive acquisitions at the moment. stranger. »
Hopes in the hydrogen car
Prices now appear to have stabilized, and these mining companies are relieved to see renewed interest in hybrid cars. But they continue to hope that the ecological transition will work more in favor of hydrogen vehicles, which require platinoids.
« We really think that hydrogen is an interesting energy source and that it will develop over the next decade, judge Craig Miller, CEO of Anglo American Platinum, the world’s largest producer of platinum. The role that platinoids can play is first of all in the production of hydrogen, and in the longer term – not at the moment – in fuel cell cars. »
An optimism that a certain number of analysts do not share, given the slow progress, over the past 30 years, of technologies usinghydrogen.
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**Interview with Charl Keyter, Group Financial Director of Sibanye Stillwater**
**Editor:** Thank you for joining us today, Charl. The mining sector in South Africa, particularly platinum producers, seems to be facing significant challenges. Can you elaborate on the current situation?
**Charl Keyter:** Absolutely. The recent decline in the prices of palladium and rhodium, which have been traditionally in high demand for automotive catalysts, has created a crisis for our industry. As the world shifts towards electric vehicles, the demand for these metals has dramatically decreased because they are less needed in electric cars.
**Editor:** That must be difficult for your company and the mining sector as a whole. Can you describe the impact this is having on employment?
**Charl Keyter:** It’s been devastating. Over the past two years, we have had to make difficult decisions to remain viable, resulting in job losses. For instance, we recently had to let go of 12,000 employees from our workforce of 80,000. This is a significant blow, considering that mining employs over a third of workers in the South African mining sector.
**Editor:** What measures are being taken to adapt to this new reality?
**Charl Keyter:** We are restructuring our operations, which includes closing unprofitable mines and diversifying our portfolio. We are also investing in new mining technologies and searching for ways to remain competitive in a changing market. However, it’s a challenging landscape, and we know that recovery will take time.
**Editor:** Looking ahead, how do you see the future of platinum and related metals?
**Charl Keyter:** It’s uncertain. While the shift to electric vehicles presents challenges, there may still be opportunities in other markets. We are exploring various avenues, including the potential uses of platinum in green technologies and hydrogen fuel cells. However, we will need to see a significant change in demand and pricing trends to ensure the sustainability of our operations in the long run.
**Editor:** Thank you for your insights, Charl. It’s clear that the mining industry in South Africa is going through a critical transformation.
**Charl Keyter:** Thank you for having me. It’s important to keep these conversations going as we navigate these challenging times.
