PGE Production in Southern Africa, Part I: Production and Market Trends
Abstract
:1. Introduction
- the automotive industry as catalytic converters (for flue gas treatment to meet the given emission standards) and in fuel cells;
- the chemical industry as catalysts for the production of silicones, fertilizers, explosives, and nitric acid, etc.;
- the petrochemical industry as catalysts;
- the electronics industry as components in hard disk drives, liquid-crystal and flat-panel displays, etc.;
- the glass manufacturing industry for the production of fiberglass, etc.;
- for the production of jewelry and many other products [1].
2. PGE Demand, Supply and Price Developments
- On the demand side, the economic growth in many countries (e.g., China) that has increased the number of participants in the PGE market and resulted in an increase in demand for a broad variety of applications.
- On the supply side, secondary producers who started entering the market about two decades ago, providing an alternative to primary PGE production.
2.1. Use and Demand
2.2. Primary and Secondary Production
2.3. Price Developments
- The prices were also influenced by the workers’ strikes in South Africa (see Section 2.2), cf. [42,43].
3. PGE Deposits in Southern Africa
3.1. The Bushveld Complex
3.2. The Great Dyke
4. Results
4.1. Production in Southern Africa
4.2. Synthesis of Market Data and Production Statistics
5. Discussion
- Unfavorable market conditions. After years of growing demand and increasing price, a peak in price and production was reached. This development was caused by an increase in secondary Pt and Pd production (recycling) while the rapid increase in demand that took place in the last decade slowed down due to weakening demand from the automotive industry and jewelry market. As Pt can be substituted (at least to some extent) by Pd in several applications, such as catalysts, a substitution of Pt by Pd is likely to be promoted by the lower price of Pd. In 2015, the situation appeared to improve slightly due to increasing demands for Pt. Still, the price of Pt in US$ remains clearly below its peak in 2011. The impact of falling prices was alleviated by the exchange rate of US$ to ZAR. The weak ZAR is likely to influence the rate of capacity development (at least in the short term). Several factors suggest that the PGE market will be more sensitive to price excursions in the future. One reason is inevitably the high concentration of PGE supply on a single country, i.e., South Africa.
- In the long-term perspective, declining ore grade and the processing of less favorable UG2 ore. The analysis of data shows stable ore grades in most sections of the Bushveld Complex. Nevertheless, studies report declining ore grades in the long term [9,92]. The assessed data furthermore reveals that UG2 presents the most processed ore type, whereas the share of Merensky decreased slightly until 2014. UG2 ore tends to have lower ore grades and the processing of UG2 ore is more complicated due to the high chromite content of the ore, and the required higher smelting temperatures, which requires more energy for processing [50].
- disruption of production and increase in production costs. The Southern African mining industry faced severe strikes in 2012 and 2014 resulting in the loss of lives, cancelation of thousands of working contracts, increasing costs and a strong decline in production volumes. Apart from loss in production, the disruption of Pt supply might have raised concerns with investors and importing countries [43,134]. The increase in production inputs combined with the need of hoisting and processing larger quantities of material will ultimately increase production costs.
- Future PGE demand. The demand for Pt and Pd is strongly dependent on environmental policies in the automotive sector. The demand is likely to increase in the future due to the introduction of automotive exhaust catalysts in many regions of the world and an increasing demand for cars as well as, in the long-term, by a promotion of fuel cell technology, even though it has to be kept in mind that the rise of electric vehicles in China, the United States and Europe might decrease the use of automotive exhaust catalysts (see Section 2.1).
- The role of secondary PGE production. The increase in demand will eventually increase the importance of secondary Pt and Pd. Currently, only about a quarter of Pt demand is covered by recycling. This share can be expected to increase when higher prices promise higher revenues, with regard to technological improvements in the recycling process and the establishment of an appropriate infrastructure for the collection and treatment of recycling material. Past developments show a steady increase in recycling, which will eventually compete with primary PGE production. A compound annual growth rate (CAGRs) of 2.9 is expected for light duty vehicle production in the upcoming decade [20]. This growth rate exceeds the CAGR of primary PGE production (see Section 2.1). Thus, even considering technical improvements that result in a lower Pt loading of exhaust gas catalytic converters, recycling is required to fulfil the demand. In the long term, when more fuel-cell-driven vehicles enter the market, recycling rates and available stocks might not be sufficient to follow the increase in demand, unless the share of electric vehicles is capable of filling this gap. As a consequence, primary production will remain an important source of PGEs.
6. Conclusions
Supplementary Materials
Acknowledgments
Author Contributions
Conflicts of Interest
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Mine | Ore Milled | Head Grade | Pt | Pd | Rh | Au | Ru | Ir | Total 6E PGE | Ni | Cu |
---|---|---|---|---|---|---|---|---|---|---|---|
[1000 t] | [g/t] | [kg] | [1000 t] | ||||||||
Western Limb | |||||||||||
Impala Rustenburg | 9199 | 4.19 | 16,307 | 7958 | 2174 | 5803c | 32,242 | 3.6 | nd | ||
Marikana (Lonmin)f | 11,248 | 4.47 | 20,244 | 9362 | 2876 | 512 | 4812 | 851 | 38,498 | 3.5 | 2.2 |
Pandoraf | 562 | nd | 1091 | 507 | 23 | 30 | 304 | 52 | 2008 | 0.2 | 0.1 |
Union | 2312 | 3.93a | 4298 | 2001 | 689 | 40 | 1077c | 8105 | 0.1 | 0.3 | |
Tumelag | 6501 | 4.12a | 12,477 | 5936 | 1806 | 201 | 3045c | 23,465 | 0.8 | 1.5 | |
Dishabag | |||||||||||
Rustenburg Groupg | 7509 | 3.56a | 14,362 | 7405 | 1709 | 533 | 2600c | 26,609 | 1.8 | 3.0 | |
Kroondal | 2848 | nd | 15,740 | 8488 | 2671 | 68 | 4598c | 31,564 | 0.4 | 0.8 | |
Bafokeng | 2461 | 4.11a | 4136e | 1709e | 385e | 188e | 609 | 7027 | 1.4e | 0.9e | |
Zondereinde | 1860 | 4.9a | 5250 | 2582 | 795 | 121 | nd | nd | 8581 | nd | nd |
Marikana (Aq.) | 0 | 0.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.0 | 0.0 |
Platinum Mile RF | 0 | 0.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.0 | 0.0 |
Chromite TRF | 2129 | nd | nd | nd | nd | nd | nd | nd | 58 | nd | nd |
Crocodile River | 0 | 0.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.0 | 0.0 |
Eland | nd | nd | 610d | 335d | 97d | 7d | nd | nd | 1049a,d | nd | nd |
Pilanesberg | 3364 | 1.99 | 2679b | nd | nd | nd | nd | nd | 4378 | nd | nd |
Tharisa | 3913 | 1.62 | 1341b | 350b | 180b | 2b | 259b | 84b | 2217 | nd | nd |
Sylvania TRF | 2129 | nd | nd | nd | nd | nd | nd | nd | 1633 | nd | nd |
Northeastern Limb | |||||||||||
Limpopof | 0 | 0.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Bokoni | 1677 | 3.5a | nd | nd | nd | nd | nd | nd | 191a | nd | nd |
Marula | 1662 | 4.19 | 2087 | 2140 | 439 | 814c | 5480 | 7.2 | nd | ||
Twickenham | 0 | 0.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.0 | 0.0 |
Modikwa | 1735 | 4.42 | 3073 | 3113 | 578 | 85 | 828c | 7677 | 0.3 | 0.5 | |
Smokey Hills | 234 | nd | 209b | 204b | 46b | 5b | nd | nd | 464a | 0.0 | 0.0 |
Southeastern Limb & Satellite Intrusions | |||||||||||
Booysendal | 1786 | 2.6a | 1944 | 956 | 208 | 45 | nd | nd | 2658 | nd | nd |
Two rivers | 3362 | 3.98 | 4919 | 2892 | 867 | 1885 c | 10,563 | 16.6 | nd | ||
Mototolo | nd | nd | 6951 | 4383 | 1094 | 119 | 1888 | 0 | 14,436 | 0.4 | 0.8 |
Blue Ridge | 0 | 0.00 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0.0 | 0.0 |
Nkomati | 8028 | nd | nd | nd | nd | nd | nd | nd | 4093 | 22.9 | 10.1 |
Northern Limb | |||||||||||
Mogalakwena | nd | 3.09a | 11,839 | 13,236 | 797 | 1503 | nd | nd | 26,685 | 9.7 | 14.8 |
Zimbabwe | |||||||||||
Zimplats | 5164 | 3.47 | 5386 | 4389 | 493 | 1242 c | 11,510 | 110.2 | nd | ||
Mimosa | 2586 | 3.93 | 3328 | 2628 | 289 | 845 c | 7090 | 98.4 | nd | ||
Unki | 1656 | 3.22a | 2570 b | 2136b | 229b | 395b | nd | nd | 5332a | 0.4b | 0.2b |
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Thormann, L.; Buchspies, B.; Mbohwa, C.; Kaltschmitt, M. PGE Production in Southern Africa, Part I: Production and Market Trends. Minerals 2017, 7, 224. https://doi.org/10.3390/min7110224
Thormann L, Buchspies B, Mbohwa C, Kaltschmitt M. PGE Production in Southern Africa, Part I: Production and Market Trends. Minerals. 2017; 7(11):224. https://doi.org/10.3390/min7110224
Chicago/Turabian StyleThormann, Lisa, Benedikt Buchspies, Charles Mbohwa, and Martin Kaltschmitt. 2017. "PGE Production in Southern Africa, Part I: Production and Market Trends" Minerals 7, no. 11: 224. https://doi.org/10.3390/min7110224
APA StyleThormann, L., Buchspies, B., Mbohwa, C., & Kaltschmitt, M. (2017). PGE Production in Southern Africa, Part I: Production and Market Trends. Minerals, 7(11), 224. https://doi.org/10.3390/min7110224