“South Africa is poised to make a significant impact at the upcoming Shanghai Platinum Week 2024, scheduled to take place from July 8 to 11. Paul Dunne, Vice President of the Minerals Council South Africa, highlighted the significance of this event, especially in light of the growing demand for platinum group metals (PGMs) in China.”
“South African miners will be strongly represented in Shanghai,” Dunne, who is also the CEO of Northam Platinum, assured. He highlighted the strategic importance of this event, noting that while it’s called Shanghai Platinum Week, the focus will largely be on hydrogen metals. South Africa, alongside the Minerals Council, will ensure robust representation.
At a recent media conference following the council’s 134th AGM in Johannesburg, Dunne stressed the vital role of Eastern economies in the mining industry’s future. He stated that the industry needs to see the future faster, a perspective significantly influenced by China.
Minerals Council CEO Mzila Mthenjane agreed with this outlook. He underscored the necessity for South Africa to anticipate future developments, especially regarding critical minerals and metals. Mthenjane also highlighted the need for South Africa to understand the changing geopolitical landscapes and seize opportunities while mitigating risks.
“We’re fortunate to be potential suppliers of these commodities. Our outlook must consider our developmental needs and how we can support the global transition to a climate-competent future,” Mthenjane stated.
Shanghai Platinum Week will take place between the London Platinum Week in May and the New York Platinum Week in September. This event, featuring simultaneous translation, comes at a time when China reinforces its status as the world’s largest PGM consumer. South Africa remains the largest supplier.
Trevor Raymond, CEO of the World Platinum Investment Council (WPIC), remarked earlier this year that China’s vehicle manufacturing is surpassing the US, making its market crucial for palladium, platinum, and even rhodium. Platinum plays a key role in China’s commitment to decarbonization by 2060. Last year’s event saw over 1,200 in-person delegates and 180,000 online attendees.
Notable attendees include the Guangzhou Futures Exchange, the Bank of Montreal, the Chicago Mercantile Exchange, Japan’s JPX, and many financial, recycling, and industrial organizations within China. The event aims to provide insight into China’s PGM market, which remains opaque to non-Chinese participants.
Edward Sterck, WPIC director of research, noted that green hydrogen will be a significant topic at the conference. The growing use of PGMs in the semiconductor industry and extended-range electric vehicles (EVs) will also be discussed. Extended-range EVs, which combine battery electric power with internal combustion engines, are becoming more prevalent, with ranges of about 1,000 km. These vehicles’ exhaust treatment systems continue to utilize PGMs.
Chinese investors have long valued platinum as jewelry, and it is increasingly seen as a solid retirement investment. With no platinum mines in China, having platinum on Chinese soil is advantageous.
“We’ve encouraged Chinese policymakers to recognize the importance of platinum investment demand and the benefits of having more platinum metal in China,” Raymond highlighted. “The timing of Shanghai Platinum Week on the global calendar is ideal. The four-year preparation period has been well worth it.”
Since establishing an office in Shanghai in 2017, WPIC has provided PGM knowledge to China, aiding investors in making informed decisions. All current PGM applications are represented in China’s growing automotive, industrial, jewelry, and investment sectors. Despite significant awareness, market liquidity remains a challenge for investment and industrial participants.
Efforts are being made to ensure that platinum and palladium futures are available, enabling local users to hedge price risk. This step is crucial for increasing participation and supporting the sustainable growth of the PGM market.
Source: Mining Weekly
