While the local platinum mining sector is being crippled by a crisis that could lead to thousands of job cuts, research into extra uses for the metal is currently under investigation by the national mineral research organisation, Mintek.
The drop in the platinum price combined with persistent cost pressures, low productivity brought about by illegal strikes and a bleak economic outlook has so far contributed to the closure of several shafts.
This week, Makhapa Makhafola, Mintek’s general manager for research and development, said Mintek was investigating the development of fuel cell products such as portable power devices through the Department of Science and Technology’s (DST) Hydrogen South Africa (HySA) Catalysis programme.
“The long-term aim is the establishment of a platinum group metals (PGM) catalyst manufacturing industry in South Africa,” he said.
Mintek co-hosts the HySA programme with the University of Cape Town (UCT) which aims to build a fuel cell and hydrogen fuel cell industry to ensure the country derives the maximum value from having 80 percent of the world’s known platinum reserves.
HySA’s goal is to provide 25 percent of the global catalyst demand for the hydrogen and fuel cell market by 2020.
During her budget speech vote, Science and Technology Minister Naledi Pandor said Mintek and UCT had developed a very promising platinum-based catalyst for fuel cells. This was being tested to benchmark it with those already commercially available.
According to Pandor, the potential hydrogen fuel cell components being developed by HySA centres can be used for portable power applications to provide quieter and cleaner alternative sources of energy compared with diesel generators. There is also a combined heat and power application for domestic and commercial use.
Last month, Anglo American Platinum (Amplats), the biggest producer of the precious metal, launched a platinum-based fuel cell-powered mine locomotive prototype at its Khomanani mine in North West province. Amplats said it would develop five more fuel cell locomotives, which would be tested for underground use with its partners Vehicle Projects, Trident South Africa and Battery Electric.
Chief executive Cynthia Caroll said last month that fuel cell technology was a huge opportunity to grow the local green economy.
“We believe that with platinum at its heart, a South African fuel cell industry would support the country’s drive for jobs and help to meet its energy challenges,” she added.
Makhafola said Mintek’s Advanced Materials Division was involved in two long-term projects both funded by the DST and focused on the beneficiation of the mineral.
He explained that the first project, which forms part of the DST’s Advanced Metal Initiative (AMI), was researching methods to produce powdered PGMs and alloys.
He said the technology would be applied in powder and metallurgical processing and manufacture of pressed powdered parts containing some PGM in the final product.
The second project of the AMI focuses on the research and development into aspects of PGM catalyst production where the catalysts are used in the chemical processing industry.
PGMs are used mainly for aircraft engines, anti-cancer drugs, cellphones and catalytic convertors for motor vehicles. Platinum is also used in jewellery.
Percy Takunda, an analyst at Imara SP Reid, said on Friday that 70 percent of mines were operating with costs at unsustainable levels, while the price of the commodity remained weak.
Without giving details, he said the platinum sector was expected to shut yet another shaft before the end of the month.
“Something has to happen to make the platinum industry sustainable, because if something does not happen there will be severe job losses,” Takunda said.
Frans Baleni, the general secretary of the National Union of Mineworkers said four platinum producers had told the union that they intended to reduce the number of employees because of tough trading conditions.
“Other companies have said they will delay certain projects. This is sad because mining is supposed to create thousands of jobs as part of the New Growth Path,” he said.
Susan Shabangu, the Minister of Mineral Resources, is expected to meet organised labour and mine bosses tomorrow to address the shedding of jobs in the platinum sector.
The platinum price was fixed at $1 493 an ounce on Friday compared with a spot price high of $1 916.10 last August and slightly better than the spot price low of $1 371.30 in December.
The car industry slowed down in August and September because of the economic turmoil in Europe
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Mining production contracted an annualised 16.8 percent in the first quarter, after growing 0.7 percent in the previous three months, according to Statistics SA. See page 3