Sibanye, Valterrra and JM team up to find new applications — and markets — for PGMs

Mining is linked in the public mind with geology. But chemistry also plays a big role in the sector as chemists mix and match the elements on the periodic table to cook up new uses for metals.

Platinum group metals (PGMs), which already have a wide range of applications, will keep the white-coated scientists in the lab busy for a while.

In the latest initiative on this front, metals chemistry company Johnson Matthey (JM), South African PGM producers Sibanye-Stillwater, and Valterra Platinum have partnered to drive R&D and find new uses – and by extension new markets – for PGMs.

“The programme aims to broaden the applications of PGMs far beyond their current use. Around 60% of global PGM supply is used in catalytic converters, which reduce harmful emissions from internal combustion engines (ICE),” the companies said in a statement that coincided with the African Mining Indaba in Cape Town.

“The collaboration, expected to expand with additional partners in the coming months, will explore uses across multiple sectors, including clean hydrogen, enhanced emissions detection and reduction across stationary and mobile sources, new electronic materials, high-performance alloys and other advanced materials.”

What this means for the South African economy
This is a big deal. South Africa accounts for about 70% of global PGM production – a massively rich endowment that needs to be tapped for all it is worth. More applications and new markets will mean more demand, supporting PGM prices, investment into the sector and badly needed job creation.

A couple of things are at play here. PGM prices are on the rebound. But this is off a low base after being depressed for years – a state of affairs that is partly a consequence of the industry’s heavy exposure to the fate of the internal combustion engine.

ICE obituaries now appear premature, and PGM prices are also recovering because of the traction that hybrid vehicles are gaining as they actually require more of the metals than a straight petrol or diesel car.

Other factors behind the rebound include a switch from gold to platinum in the jewellery space because of the yellow metal’s scorching record run. And years of underinvestment in production point to tightening supplies and looming shortages.

But a sustained rally over the really long term requires finding new applications for PGMs. Beyond autocatalysts and bling, current uses are many.

For example, if you know someone with a pacemaker, they have a piece of platinum inside them. Fibreglass includes a platinum/rhodium mix. AI chip production and hydrogen fuel cells are other areas.

And what kind of future uses can emerge?

“We are looking for alternative uses through this initiative. We know PGMs can be substituted in the electronics space and can be used for water purification. There are a lot of applications that we think are unknown at the moment because of the properties of PGMs,” Valterra Platinum CEO Craig Miller told Daily Maverick.

“What this partnership can bring is creating a sort of understanding of what some of these new demand segments are and then being able to leverage them to scale.” DM