Amplats sees green future

BASKET PRICE: FUEL CELL BATTERY VEHICLES TO DRIVE DEMAND FOR PLATINUM GROUP METALS

A71% increase in the PGM (platinum group metal) basket price boosted Anglo Platinum’s earnings by 39% for the 2020 financial year. This was despite the setbacks of the Covid lockdown which dropped PGM production by 14% to 3.8 million ounces, and an explosion at a key converter plant which dropped refined production by 42% to 2.7 million ounces. The first phase of the converter plant was restored to production in November last year, within budget and ahead of schedule.

Strong PGM prices and a weaker rand helped brush these setbacks aside, resulting in a 39% increase to R41.6 billion in Ebitda (earnings before interest, tax, depreciation and amortisation).

PGM basket prices increased to R33 320 per ounce sold from R19 534 in 2019.

Anglo Platinum reported a strong recovery in the second half of 2020, with own-mines production up 1% compared to the same period in 2019 (adjusting for the sections at Amandelbult that came to their end of mine life).

Demand for light vehicles dropped 14% last year but is now back to near normal levels, led by demand from China. Demand was further underpinned by a 5% increase in PGM per light vehicle manufactured.

Jewellery demand is weak, but recovering, while industrial and investment uptake held up surprisingly well in an otherwise trying year.

The long-awaited lift-off of the hydrogen economy is critical to the future of platinum mines, with 109 corporate members of the Hydrogen Council and nine new national hydrogen strategies announced – all aimed at reducing carbon output using hydrogen-based technologies.

Signalling its commitment to green energy, Anglo Platinum CEO Natascha Viljoen said the group will pilot its first hydrogen fuel cell truck in the first half of 2021, leading eventually to the replacement of all diesel-powered trucks at the Mogalakwena mine.

Also being considered is the use of hydrogen fuel cells as a source of energy for processing facilities across the group.

The building of a 75MW photovoltaic plant at Mogalakwena mine will reduce carbon emissions by up to 25%.

The plan is to scale this up substantially in the coming years to reduce dependence on the Eskom grid as well as scale back carbon emissions.