Strategic discussions on the PGMs market highlight future opportunities and challenges.
Johannesburg, 3 April 2025 – VBKOM's participation in the PGMs Industry Day, organised by Resources for Africa, offered valuable insights of the evolving landscape of the Platinum Group Metals (PGMs) market. This event, attended by industry leaders and stakeholders, fostered meaningful discussions around market dynamics, geopolitical influences, and technological advancements.
Image: PGMs Industry Day Podium Stand
Lebohang Sekhokoane, representing VBKOM, noted the event's success and the depth of the discussions that took place, particularly around recent geopolitical developments such as the implications of the recent tariff imposed by the U.S affecting various sectors. PGM’s are not directly targeted. However, these tariffs have significant indirect implications for the PGM market, especially through their impact on the automotive industry—a major consumer of PGMs. "The PGMs Industry Day served as a crucial platform for addressing current uncertainties and exploring discussions for the potential for regional trade within Southern Africa," she commented. "While some stakeholders expressed concerns over prolonged low commodity prices, others pointed to promising opportunities for growth in hybrid vehicle technologies and fuel cells."
A key theme that emerged during the day was the divide in market sentiment: one group expressed concern that meaningful recovery in the PGMs market may not materialize soon, given persistently low commodity prices. In contrast, others saw untapped potential for South Africa’s PGMs sector, particularly in the context of long-term opportunities linked to technological advancements that require the use of PGM’s.
The PGMs Industry Day underscored several strategic key benefits and opportunities for the sector:
Image: PGMs Projects Panel Discussion
According to 2023 data from Statista, the PGM mining industry was South Africa's largest employer across all mineral commodities produced in the country, surpassing the coal sector. However, ongoing low commodity prices have taken a toll on the industry, leading to significant job losses—exceeding 10,000 in recent periods. This was a central topic of discussion at the PGMs Industry Day, with concerns raised that, should prices remain depressed, further employment losses may follow. Nonetheless, some participants noted that a recovery in PGM prices could reposition the sector as a key economic driver for the country.
Another critical issue highlighted was the long lead time required to develop PGM projects in South Africa. These projects often take significantly longer than the global average of 17 years to progress from exploration to operational status. This delay is largely due to the complexity of mining PGMs from hard rock deposits and the substantial capital investment required to develop deep-level underground operations, that South African PGM deposits tend to become.
By contrast, PGM operations in Zimbabwe are often considered easier to manage than those in South Africa due to shallower and more accessible ore bodies in the Great Dyke region, as well as a readily available skilled workforce. These geological and operational advantages contribute to greater efficiency and lower mining costs. However, Zimbabwe’s mining sector faces significant challenges related to policy instability and fiscal uncertainty.
The Minister of Trade, Industry and Competition, the Honourable Parks Tau, reaffirmed the critical importance of diversifying the PGMs market. He emphasized the need to protect downstream beneficiation, advocating for increased value addition within South Africa rather than the continued export of raw materials. This focus on local beneficiation is intended to drive sustainable economic growth and create long-term employment opportunities.
Representatives from junior mining companies, including Tharisa and Ivanhoe, emphasised the need for resilience and continuous innovation to remain competitive amid volatile commodity prices. They pointed to the strategic adoption of advanced technologies, particularly in extraction and processing, as essential for improving efficiency, reducing operational costs and minimising environmental impact.
Discussions also addressed the broader the challenges facing the sector, including global economic uncertainty and the growing shift toward electric vehicles, which could influence future demand for certain PGMs. Considering this, participants highlighted the need for strategic partnerships and increased investment in research and development to discover new applications for PGMs and expand their relevance beyond traditional uses such as catalytic converters. Additionally, the importance of fostering a stable and supportive regulatory environment was raised as a key enabler for investment, sectoral growth, and the continued contribution of the PGMs industry to the South African economy.
Image: PGMs Industry Day auditorium
The insights gained from the event will continue to shape our efforts to provide tailored solutions and strategic guidance to the mining industry. As a trusted advisor, VBKOM remains committed to empowering mining professionals and industry leaders with the knowledge and tools necessary for long-term success.
VBKOM is a leading provider of bespoke consulting services to the mining industry. With a focus on strategic solutions and long-term partnerships, VBKOM empowers businesses to navigate complex challenges and achieve sustainable growth. Our multidisciplinary team is dedicated to delivering innovative insights and practical, client- centric solutions that align with the unique goals and operating environments of each project.
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