South Africa’s Impala Platinum (Implats) has resumed operations at its mines in Rustenburg after a deadly accident that killed 12 workers and injured 75 others on Monday. The company said it would gradually ramp up production to full capacity by next week, but one of its shafts would remain closed until next year.
The accident occurred at the No. 11 shaft, which accounts for about 15% of Implats’ platinum group metals (PGM) output at the Rustenburg complex. The cause of the accident is still under investigation, but preliminary reports suggest that a gas leak triggered an explosion that collapsed part of the shaft.
The accident has raised concerns about the safety of South Africa’s mining industry, which is the world’s top supplier of platinum, a metal used in devices that reduce vehicle emissions. South Africa’s mines are among the deepest and oldest in the world, and face challenges such as power shortages, labour unrest, and environmental regulations.
According to the Department of Mineral Resources and Energy, the sector recorded 49 fatalities in 2022, the lowest number on record, but still far from the goal of zero harm. The minister of the department, Gwede Mantashe, said he was saddened by the loss of lives and urged the industry to improve its safety standards.
The accident also comes at a time when the platinum market is facing a supply deficit due to strong demand from the automotive and industrial sectors, as well as the growing interest in hydrogen as a clean energy source. Platinum is a key component of fuel cells, which convert hydrogen and oxygen into electricity and water.
The World Platinum Investment Council (WPIC) forecasts that platinum demand will exceed supply by 556,000 ounces in 2023, the largest deficit in six years. The WPIC also expects platinum prices to rise by 23% in 2023, reaching an average of $1,300 per ounce.
Implats, which is the second-largest platinum producer in the world, said it was confident that it would meet its production guidance for the 2023 financial year, despite the impact of the accident. The company also said it was committed to supporting the families of the deceased and the injured workers, as well as the authorities in the investigation.
