{"id":265004,"date":"2025-11-05T11:47:19","date_gmt":"2025-11-05T12:47:19","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=265004"},"modified":"2025-11-05T16:03:20","modified_gmt":"2025-11-05T16:03:20","slug":"why-south-africa-needs-a-pgm-commodity-exchange-for-a-sustainable-future","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/why-south-africa-needs-a-pgm-commodity-exchange-for-a-sustainable-future\/","title":{"rendered":"Why South Africa needs a PGM Commodity Exchange for a sustainable future"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

South Africa should adopt a long-term beneficiation strategy for platinum group metals (PGMs) through establishment of a commodity exchange, experts said on Wednesday, while also calling for miners of the precious metal to deepen research on wider use cases as the uptake of green hydrogen is emerging off a very low base.<\/span><\/p>\n

Despite their widespread use in internal combustion vehicles, PGMs are also considered essential for green energy transition as they can still be used in hybrid vehicles and in hydrogen vehicles.<\/span><\/p>\n

Nimrod Zalk, the chief research officer for climate and development at the Nelson Mandela School of Public Governance, said on Wednesday that <\/span>PGMs have become the largest mining sector in the South African economy<\/span> as a big employer and revenue generator for the government. However, to sustain future benefits for the South African economy, PGM miners need to research and explore other industrial use cases.<\/span><\/p>\n

\u201c<\/span>PGM min<\/span>e<\/span>rs really need to be putting a lot of resources and probably a lot more resources into the research and development that’s needed to develop new industrial uses for PGM<\/span>s to ensure that <\/span>significant chunks of those industrialization opportunities actually take place in South Africa<\/span>,\u201d said Zalk<\/span>.<\/span><\/p>\n

One of the emerging use cases for PGMs was the metal\u2019s in the gr<\/span>een hydrogen<\/span> economy under <\/span>South Africa’s green transition<\/span>. Zalk said in addition to <\/span>a just green transition<\/span>, there was need for a <\/span>balanced approach <\/span>in relation to <\/span>the resources that are put into the green hydrogen economy work. <\/span> <\/span><\/p>\n

\u201cBy tha<\/span>t I don’t just mean financial resources, but also critically the time and attention that government officials spend on green hydrogen related activities relative to other green economy opportunities<\/span>,\u201d Zalk, who was speaking during a round table on PGMs organised by the Mapungubwe Institute for Strategic Reflection, said.<\/span><\/p>\n

PGMs are imported for the green energy transition as they a<\/span>re required for the production of fuel cells, both for stationary uses, <\/span>as well as for <\/span>fuel cell powered vehicles<\/span>. PGMs are also key in <\/span>electrolysers that are required to produce green hydrogen.<\/span><\/p>\n

However, <\/span>said Zalk, <\/span>the hydrogen economy has been slow to get out of the starting blocks<\/span>, adding that \u201c<\/span>the fuel cell industry is emerging off, or for very low<\/span>\u201d<\/span> base.<\/span><\/p>\n

\u201cAs <\/span>of now, green hydrogen is yet to emerge as a fully commercialised technology<\/span>,\u201d he said.<\/span><\/p>\n

South Africa <\/span>holds significant PGM reserves, necessitating the need for President Cyril Ramaphosa\u2019s government to work on establishing a commodity exchange for the precious metals, said <\/span>Iraj Abedan<\/span>, executive director for Pan African Research and Investment Services.<\/span><\/p>\n

\u201c<\/span>It’s important<\/span> to n<\/span>ote that every day, every week, and every year that passes by, South Africa’s strategic positioning<\/span> in PGMs <\/span>diminishes, because more and more secondary markets increase their share of the global supply. <\/span>R<\/span>ecycling and re beneficiation of existing PGMs in different manufactured items around the globe has generated a growing secondary market<\/span>,\u201d said Abedan.<\/span><\/p>\n

This was necessitating the case for enhanced beneficiation, which has to be premised on a <\/span>strategic and long term <\/span>basis. Other hubs such as the UK had established the London Gold Exchange which has retained value over the years, generating benefits for the country even without significant or large scale local production of gold.<\/span><\/p>\n

The South African government was dragging its feet on establishing a PGM commodity exchange.<\/span><\/p>\n

\u201cI<\/span>t is somewhat disappointing that South Africa, as a whole, government, in particular, has <\/span>neglected this (commodity exchange). <\/span>The only institution that has shown keen interest and remains interested is the South African Reserve Bank, and that’s a very important player<\/span>,\u201d explained Abedan.<\/span><\/p>\n

Establishing a PGM <\/span>commodity exchange<\/span> was a <\/span>strategic industrial policy<\/span> for SA, with the \u201c<\/span>only missing element <\/span>at the moment being a<\/span> sleeping government and a non patriotic<\/span>\u201d local<\/span> industry.<\/span><\/p>\n

\u201c<\/span>Those two are the only two missing elements of a successful PGM exchange in the country<\/span>,\u201d Abedan<\/span><\/p>\n

A PGM commodity exchange would <\/span>link key service sectors to <\/span>key <\/span>beneficial sect<\/span>ors that include th<\/span>e financial<\/span>, l<\/span>egal<\/span>,<\/span> insurance <\/span>and <\/span>logistics<\/span> sectors. Moreover, being in a digital platform, the exchange will be future proofed given <\/span>existing technolog<\/span>ical advancements and <\/span>growing digitalization<\/span> of assets.<\/span><\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

South Africa should adopt a long-term beneficiation strategy for platinum group metals (PGMs) through establishment of a commodity exchange, experts said on Wednesday, while also calling for miners of the precious metal to deepen research on wider use cases as the uptake of green hydrogen is emerging off a very low base.Despite their widespread use in internal combustion vehicles, PGMs are also considered essential for green energy transition as they can still be used in hybrid vehicles and in hydrogen vehicles.Nimrod Zalk, the chief research officer for climate and development at the Nelson Mandela School of Public Governance, said on Wednesday that\u00a0PGMs have become the largest mining sector in the South African economy as a big employer and revenue generator for the government. However, to sustain future benefits for the South African economy, PGM miners need to research and explore other industrial use cases.\u201cPGM miners really need to be putting a lot of resources and probably a lot more resources into the research and development that’s needed to develop new industrial uses for PGMs to ensure that\u00a0significant chunks of those industrialization opportunities actually take place in South Africa,\u201d said Zalk.One of the emerging use cases for PGMs was the metal\u2019s in the green hydrogen\u00a0economy under\u00a0South Africa’s green transition. Zalk said in addition to\u00a0a just green transition, there was need for a\u00a0balanced approach\u00a0in relation to\u00a0the resources that are put into the green hydrogen economy work.\u00a0\u00a0\u201cBy that I don’t just mean financial resources, but also critically the time and attention that government officials spend on green hydrogen related activities relative to other green economy opportunities,\u201d Zalk, who was speaking during a round table on PGMs organised by the Mapungubwe Institute for Strategic Reflection, said.PGMs are imported for the green energy transition as they are required for the production of fuel cells, both for stationary uses,\u00a0as well as for\u00a0fuel cell powered vehicles. PGMs are also key in\u00a0electrolysers that are required to produce green hydrogen.However,\u00a0said Zalk,\u00a0the hydrogen economy has been slow to get out of the starting blocks, adding that \u201cthe fuel cell industry is emerging off, or for very low\u201d\u00a0base.\u201cAs\u00a0of now, green hydrogen is yet to emerge as a fully commercialised technology,\u201d he said.South Africa\u00a0holds significant PGM reserves, necessitating the need for President Cyril Ramaphosa\u2019s government to work on establishing a commodity exchange for the precious metals, said Iraj Abedan, executive director for Pan African Research and Investment Services.\u201cIt’s important\u00a0to note that every day, every week, and every year that passes by, South Africa’s strategic positioning\u00a0in PGMs\u00a0diminishes, because more and more secondary markets increase their share of the global supply.\u00a0Recycling and re beneficiation of existing PGMs in different manufactured items around the globe has generated a growing secondary market,\u201d said Abedan.This was necessitating the case for enhanced beneficiation, which has to be premised on a\u00a0strategic and long term\u00a0basis. Other hubs such as the UK had established the London Gold Exchange which has retained value over the years, generating benefits for the country even without significant or large scale local production of gold.The South African government was dragging its feet on establishing a PGM commodity exchange.\u201cIt is somewhat disappointing that South Africa, as a whole, government, in particular, has\u00a0neglected this (commodity exchange).\u00a0The only institution that has shown keen interest and remains interested is the South African Reserve Bank, and that’s a very important player,\u201d explained Abedan.Establishing a PGM\u00a0commodity exchange\u00a0was a\u00a0strategic industrial policy\u00a0for SA, with the \u201conly missing element\u00a0at the moment being a\u00a0sleeping government and a non patriotic\u201d local\u00a0industry.\u201cThose two are the only two missing elements of a successful PGM exchange in the country,\u201d AbedanA PGM commodity exchange would\u00a0link key service sectors to\u00a0key\u00a0beneficial sectors that include the financial, legal,\u00a0insurance\u00a0and\u00a0logistics\u00a0sectors. Moreover, being in a digital platform, the exchange will be future proofed given\u00a0existing technological advancements and\u00a0growing digitalization\u00a0of assets.BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":265006,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-265004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=265004"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265004\/revisions"}],"predecessor-version":[{"id":265005,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/265004\/revisions\/265005"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/265006"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=265004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=265004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=265004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}