Platinum’s Resurgence The Metal Powering South Africa’s Future

Q | Why is platinum emerging as the cornerstone of South Africa’s mining future?

Servaas Kranhold: As gold once defined our mining legacy, platinum now represents the future. Alongside manganese and iron ore, it forms the new foundation of South Africa’s mining economy. This marks a shift from nostalgia toward positioning ourselves for the industrial and energy transitions shaping the global landscape.

Q | What is driving renewed optimism in the platinum-group metals (PGMs) sector?

Marcus Stelloh: The sentiment following the Joburg Mining Indaba was notably upbeat. Despite some market volatility, platinum prices have shown resilience and are rising alongside palladium and rhodium. Global demand for critical minerals is intensifying, and platinum’s role in clean energy and advanced manufacturing keeps it relevant and strategically important.

Q | How is platinum connected to the evolution of green technologies and mobility?

Siyabonga Mthembu: Platinum’s role in technology is irreplaceable. Hydrogen engines, hybrid vehicles, and industrial sensors all depend on it. Even as fully electric vehicles gain traction, their adoption outside China remains limited due to cost and production challenges. This creates space for hybrid and hydrogen technologies and platinum sits at the very centre of that bridge between today’s and tomorrow’s transport systems.

Q | What role does South Africa’s hydrogen economy play in this transformation?

Servaas Kranhold: It’s one of the biggest opportunities for our platinum sector. The planned R106 billion hydrogen plant in Nelson Mandela Bay demonstrates the country’s potential to supply and process PGMs essential to clean energy systems. Hydrogen gives South Africa a oncein-a-generation chance to link mining, manufacturing, and renewable power into one integrated value chain , creating jobs, skills, and long-term economic value.

Q | How are global policies influencing the platinum market?

Marcus Stelloh: We’re seeing geopolitical factors reshape the PGM landscape. The World Platinum Investment Council’s support for tariffs on Russian palladium imports, for example, reflects a shift toward securing trusted mineral sources. South Africa is well positioned as a reliable, Western-aligned supplier at a time when sustainability and trust are key in international trade. South Africa’s Critical Minerals Strategy, launched in 2025, identifies PGMs as “high-criticality” minerals essential to industrial and energy transitions. However, the strategy currently lacks strong fiscal incentives, such as tax holidays, royalty reliefs or differentiated frameworks, to stimulate new exploration or encourage beneficiation. There is growing policy gap between South Africa’s strategic ambitions and the current level of fiscal support for critical minerals. Mining companies may increasingly advocate for targeted tax incentives to support local beneficiation, hydrogen-linked manufacturing and broader green-industry development.

Q | Can platinum position South Africa as a leader in green manufacturing and energy?

Servaas Kranhold: Absolutely. If we align policy, infrastructure, and investment, we can move from being a raw mineral exporter to a green technology hub. That’s where the real transformation happens, when mining supports a wider industrial base linked to renewable energy and manufacturing.

Q | What challenges must be overcome to realise platinum’s full potential?

Siyabonga Mthembu: The challenge is execution, turning potential into performance. We need collaboration between government and the private sector, strong infrastructure, and policy consistency. The minerals are here, but we must build the systems to extract longterm industrial growth from them.

Q | What tax and transfer pricing challenges should mining companies consider as platinum powers South Africa’s green transition? Marcus Stelloh: As mining companies expand into hydrogen production, renewable energy integration, and potentially downstream beneficiation, the tax landscape becomes significantly more complex. SARS is intensifying scrutiny on transfer pricing, especially around intercompany mineral sales, marketing hubs, and financing arrangements. Recent court rulings on mineral royalties and new customs valuation rules mean that historical calculations may need to be revisited. At the same time, opportunities exist, such as the 125% renewable energy tax deduction and the emerging Advance Pricing Agreement framework, that can offer certainty and savings if structured correctly. Mining leaders should be proactive: aligning their tax and TP strategies with operational realities, documenting value creation across the supply chain, and preparing for increased audit activity. This is where specialist support becomes essential, not just for compliance, but for unlocking strategic value in a rapidly evolving regulatory environment.

Q | In summary, what does platinum’s resurgence mean for South Africa’s future?

Marcus Stelloh: It means reinvention. The convergence of green energy, technology, and global trade realignment places platinum at the centre of South Africa’s economic renewal.

Servaas Kranhold: Platinum’s next chapter could define the nation’s industrial identity for decades to come.

Siyabonga Mthembu: It’s not just about mining metal; it’s about powering a sustainable future.

Download the full issue: Southern African-German Mining Magazine