Frank Hallam

FRANK Hallam’s Platinum Group Metals (PTM) is studying how it might refine platinum group metals from its Limpopo-based Waterberg JV in-country rather than in Saudi Arabia as per a 2024 memorandum of understanding with Riyadh-based Ajlan & Bros Mining and Metals. This was after the South African government last year “expressed their preference for local beneficiation rather than grant approval for the export of unrefined precious metals in concentrate” to Saudi Arabia.

The development is a potential setback for Hallam’s Waterberg JV. Saudi Arabia was offering tax and energy incentives for a matte converter and refinery in its borders that South Africa would struggle to match, especially regarding energy supply. Eskom, South Africa’s government-owned power utility, has been slow to provide customised electricity tariffs. Last year, this lack of invention nearly resulted in the retrenchment of thousands at the country’s ferrochrome smelters – and may still yet. PTM’s alternative to building a plant in South Africa is securing a concentrate offtake agreement with existing refiners – a task that has already proved troublesome.

In an interview, Hallam described negotiations as “lengthy and heated”, with no acceptable outcome; not even with Impala Platinum, a 14.7% shareholder in the Waterberg JV. Still, times and markets change. Look no further than palladium and platinum prices. At the time of writing they were trading at a spot basket price well above PTM’s base case price for Waterberg JV of $1,325/oz. Hallam is hoping the hydrogen economy will also change perspectives on the Waterberg JV, estimated to cost $776m to build.