AI, robots and shrinking supply drive Northam’s PGM growth plans

Northam Platinum is betting that new uses for platinum group metals in artificial intelligence, data storage, electronics and robotics will add to demand at a time when South African mine supply is falling.CEO Paul Dunne said during the miner’s annual results presentation on Friday that the company remained positive on platinum as well as rhodium, iridium and ruthenium, as new industrial applications emerge alongside established demand from the automotive sector.“The PGM market remains in deficit,” Dunne said, adding that industrial demand is strong, helped by new applications in AI.He said declining mine production, continued use of PGMs in vehicle catalysts and new industrial applications would be important for prices over the medium to long term.At Zondereinde, Dunne said platinum, rhodium, iridium and ruthenium make up 75% of the metal split in the UG2 reef.Dunne pointed to ruthenium’s role in data storage and the use of iridium crucibles to grow crystals needed for high-tech and AI applications.“These are very special metals, and new applications continue to evolve,” he said. “Ruthenium is absolutely critical for data storage.”During a media roundtable later, he also highlighted platinum’s use in fibreglass and robotics. One example is platinum used to cure high-quality silicone used to make the skin of humanoid robots.Dunne was less upbeat about palladium because of its heavy dependence on cars. He said about 90% of palladium demand comes from the automotive sector, leaving it more exposed to the eventual penetration of battery electric vehicles.Falling supplyThe demand outlook comes against a backdrop of falling South African PGM production.Dunne said South African platinum production, historically about 5Moz a year, fell to around 3.9Moz last year. On its current trajectory, production could fall towards 3Moz by 2035, compared with a global market of roughly 7.5Moz.That would leave recycling with a much bigger role in filling the gap.“That’s quite a tall order,” Dunne said.Under Northam’s Vision 2031 strategy, the miner targets annual PGM sales of more than 1.5Moz on a 4E basis, equivalent to 1.8Moz on a 6E basis when when iridium and ruthenium are included. It also plans to lift chrome sales above 2 million tons.Unsolicited approachThe company’s growth plans also provide the backdrop to the unsolicited approach it recently received from another major South African PGM producer.Northam has since started a competitive process to consider possible transactions with interested parties.Dunne said the original approach could ultimately result in an asset or corporate transaction, but stressed that bidders would have to establish what they were prepared to pay.“We’re not the bidder,” he said. “It’s the bidders who will price, and we would accept against that price or not.”Northam believes its growing production, large resource base and exposure to metals such as rhodium, iridium and ruthenium add to its strategic value.“Northam stands alone amongst the majors as a growth asset,” Dunne said. “The most valuable thing is time. We have a proven track record of rapidly growing our production base to create the company we are today.”He said the same approach, together with Northam’s resource base, would allow it to pursue further growth.The post AI, robots and shrinking supply drive Northam’s PGM growth plans appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com