Platinum Group Metals give SA economy huge boost

THE SOUTH African economy has benefited significantly from Platinum Group Metals (PGM) which produced 221 million PGM ounces valued at R1.2 trillion between 1980 and 2015.

Profits generated from the sale of PGMs were distributed to multiple stakeholders, mainly across the South African economy, over that period.

This was revealed at a media briefing on the national platinum strategy for South Africa at the African Mining Indaba in Cape Town yesterday.

The briefing was hosted by the Minerals Council, led by chief executive Roger Baxter, and Anglo American Platinum chief executive Chris Griffith.

According to the Minerals Council, the PGM sector developed into one of the largest components of the mining industry. It is the largest mining employer and remains a significant export revenue earner.

“Its development, investment and transformation footprint on the economy is significant and in 2018, the PGM sector produced around 259 tons of platinum, exported around 89 percent of the metals produced, earned around R96 billion in revenue, employed around 168 000 people directly, paid employees R48bn in earnings, and contributed R0.9bn in royalties,” the council said.

“However, the sector is in crisis. Over the past five years, it has struggled with an oversupplied market, a function of structural changes in global supply and demand fundamentals, including increased growth in recycling, flat new-mine supply and weaker demand, domestic labour strife, declining productivity and rapidly escalating costs.”

The National Platinum Strategy for South Africa, developed by the Platinum Leadership Forum comprising platinum producing members of the Minerals Council, is aimed at addressing the current crisis, preventing further erosion of the economic capacity of the industry and ensuring that the world’s largest PGM resource realises its full value through the addition of more than 1 million jobs and a contribution of R8.2trln to South Africa’s economy by 2050.

The council said achieving the aims of the strategy would require the collaboration of all stakeholders. | African News Agency (ANA)