PGMS biggest generator of mining revenue

PLATINUM group metals ( PGMS) have overtaken coal as the biggest revenue generator in South Africa’s mining industry for the first time since 2010, according to the Price water houseCoopers ( PWC) SA Mine 2020 Report released yesterday.

Revenue from mining houses jumped 38 percent to R594 billion in 2020 from R431bn a year earlier, with PGMS generating 28 percent, the largest portion of revenue.

Gold mining companies’ revenue increased 35 percent, and revenue for the “other mining” segments increased by 7 percent, said the report.

Andries Rossouw, PWC Africa energy, utilities and resources leader, told journalists that PGMS’ share of revenue had increased 56 percent from last year. “When we started this publication in 2009, PGMS were the leading revenue generator, and they fell back to coal, and we are pleased to see PGMS back on top again, followed by gold, and then iron ore,” said Rossouw.

PGMS include platinum, palladium, rhodium, iridium, osmium and ruthenium. PGMS are used in several industrial processes, technologies and commercial applications.

The report said the impact of the Covid- 19 pandemic was evident from April, with reductions in revenue across the industry.

“South African PGMS and gold are mainly mined in deep- level underground mines and were, therefore, hardest hit. PGM and gold producers indicated that they expect to reach full production levels by the end of the calendar year,” said the report.