Platinum Group Metals (PGMs) to contribute significantly to the South African economy

Platinum Group Metals (PGMs) have the potential to add up to one million more jobs in South Africa and contribute up to R8 trillion more to the country’s economy. The combination of hydrogen and fuel cell technology is the key to unlocking this potential. As natural gas is displaced by green hydrogen, and fuel cell electric vehicles (FCEVs) displace internal combustion engine vehicles, the net carbon dioxide savings could be up to 11% of the Paris Agreement’s 2030 targets. FCEVs and hydrogen electrolysers can provide a growth opportunity for South Africa in the range of 34% and 51% by 2030. Investment in hydrogen is expected to be between $300 billion and $1 trillion in the next decade or so.

More than 30 countries around the world already have programmes in place to move the hydrogen economy forward, with a number of countries investing heavily in the sector. Australia, for example, has invested $4 billion in the hydrogen economy, and is working with companies to bring green hydrogen costs down from $6/kg to $1.50/kg. The mining industry, organised labour, communities and the South African government must work together to realise the potential of PGMs.

South Africa is the overwhelming source of global PGMs, with 87% of the world’s known reserves. Including Zimbabwe takes this figure up to over 90%. The National Platinum Strategy for South Africa, developed by the Minerals Council, has the goal of adding R8 trillion to the country’s economy by 2050 and creating one million additional direct and indirect jobs.

PGMs are playing an increasingly important role in the global transition to net zero, with 30 countries deploying hydrogen strategies to decarbonise their economies. In 2021, the 277 t of PGMs produced by 172,159 direct employees for R347 billion represented nearly 40% of the total minerals sold by South Africa.

PGMs are also referred to as green metals. In autocatalysts, PGMs transform vehicle exhaust gases into more benign components, such as water, carbon dioxide, and nitrogen gas. Green hydrogen, generated by electrolysers using renewable energy, is key to decarbonising heavy industry and everyday activities. Platinum is used as a catalyst in both PEM electrolysers and PEM fuel cells, while iridium is also used with platinum in PEM electrolysers to produce hydrogen. Ruthenium in PEM fuel cells with platinum is scalable from small devices to heavy-duty transport.

The Minerals Council has launched the first building-based fuel cell in Africa to demonstrate that the technology works. The PGM-based proton exchange membrane (PEM) technology is well-suited to using intermittent renewable energy feed such as from solar. South African mining has been able to unlock 9 GW of renewable energy projects through its engagement with government.

Hydrogen fuel cells, an environmentally friendly alternative for delivering power, emit only medical-grade carbon dioxide and water. Platinum Group Metals are a vital industry for South Africa, with roughly 500,000 people employed within the PGM sector.