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South Africa is home to the world’s largest PGM and chrome resources

With its rich mineral wealth, South Africa hosts approximately 80% of the world’s PGM and 70% of its chrome resources.

These industries have benefitted from significant investment, increased employment, and community upliftment. In contrast, the country benefits from economic contribution, both directly and indirectly, through the multiplier effect, also known as shared value contribution, foreign revenue generation and resulting taxes, including significant royalty payments, as the companies involved in the sustainable extraction of these resources continue to invest.

South Africa’s mining industry remains essential to the global commodity supply chain, with a particular emphasis on the PGM and chrome sectors, without which major global industries could not deliver.

Platinum Group Metals (PGMs)

The epicentre of PGM mining

Deep beneath the surface, in the earth's crust lay a group of rare and precious metals, forged billions of years ago in the heart of exploding stars. These metals, known as the Platinum Group Metals (PGMs), comprise six elements: platinum, palladium, rhodium, ruthenium, osmium and iridium. Their journey began around 2.5 billion years ago when the earth's crust was still forming.

The PGMs were first discovered in South Africa in the 18th century, but it was in the early 20th century that their unique properties and potential uses became apparent. The Bushveld Complex in South Africa, one of the largest known deposits, would become the epicentre of PGM mining.

With its rich mineral wealth, South Africa hosts approximately 80% of the world’s PGM and 70% of its chrome resources.

These industries have benefitted from significant investment, increased employment and community upliftment. In contrast, the country benefits from economic contribution, both directly and indirectly, through the multiplier effect, also known as shared value contribution, foreign-revenue generation and resulting taxes, including significant royalty payments, as the companies involved in the sustainable extraction of these resources continue to invest.

PGMs have several unique properties that make them indispensable in various industries:

Catalytic converters: PGMs, particularly platinum, palladium and rhodium, reduce harmful emissions in vehicle exhausts, converting pollutants into harmless gases.
Jewellery: Platinum's durability and aesthetic appeal make it a popular choice for fine jewellery.
Medical applications: PGMs are used in medical implants, such as pacemakers, dental implants and surgical instruments.
Electronics: PGMs are used to produce computer hard drives, catalysts and other electronic components.
Fuel cells: PGMs, especially platinum, are essential for the development of fuel cell technology.

The PGM industry has undergone significant transformations over the last decade:

Supply and demand: Fluctuating demand, primarily driven by changes in automotive demand and emissions regulations, has impacted PGM prices.
Recycling: The industry has shifted focus towards recycling, particularly from catalytic converters, to supplement primary production.
Alternative technologies: Research into alternative materials, such as palladium-free catalysts, has gained momentum.
Sustainability: The industry has emphasised responsible mining practices, environmental stewardship and social responsibility.
Electrification of transportation: The rise of electric vehicles (EVs) has led to decreased demand for PGMs in traditional catalytic converters.

Despite these changes, PGMs remain crucial components in various industries. As technology continues to evolve, the demand for these rare metals will adapt, ensuring their value and importance for generations to come.

Chrome - what makes steel stainless

South Africa hosts the largest chromite reserves in the world, with annual production measured both in local sales and export sales, making up two-thirds of the world’s total production. China imported approximately 90% of South Africa’s exports. Indonesia remains an essential player in the downstream chrome industry, with Tharisa supplying some of Indonesia’s most modern and largest ferrochrome smelters.

With the stainless-steel market in the Far East needing close to 2 Mt of chrome concentrate a month and the industry projected to grow at some 3%, the fundamentals for chrome remain strong, particularly as logistics, both inland in South Africa and vessels transporting product to China, remain complex, yet manageable. Any economic stimulus in China and beyond will provide solid support for the chrome market.

Chrome-end uses

Chrome ore demand is driven by ferrochrome use, with more than 90% of chrome ore being used for metallurgical purposes. Approximately 4% of demand is derived from the chemical industry and the balance from the foundry and refractory industries. The majority of metallurgical grade chrome concentrate is utilised in the production of ferrochrome. In turn, the largest consumer of ferrochrome is stainless steel. As such, the dynamics in the stainless- steel industry impact the ferrochrome and chrome ore industries.