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On-The-Air (17/01/2025)

Martin Creamer talks about ferroalloy market share, platinum group metals and the green hydrogen economy.

17th January 2025

By: Martin Creamer

Creamer Media Editor

     

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Every Friday, SAfm’s radio anchor Sakina Kamwendo speaks to Martin Creamer, publishing editor of Engineering News & Mining Weekly. Reported here is this Friday’s At the Coalface transcript:

Kamwendo: The first steps are being taken by South Africa to win back ferroalloy market share.

Creamer: South Africa was the leader in ferroalloys. For decades, we led in ferrochrome, we led in ferromanganese. Ferrochrome feeds the stainless steel industry. Ferromanganese the steel industry. We were there with an added value product, a beneficiated product. Then along came the very high priced electricity from Eskom. It set things back very badly to a point where many of the many ferroalloy smelters around South Africa have been put on care and maintenance. Now, the first of these has been bought, so a new vision is being seen.

If we look at Metalloys, in Meyerton, we will see Menar has bought this with the view of reopening it and restarting at least two of its furnaces – it has got four of them – so that they can produce ferromanganese and start regaining some of the lost share, because we have got all the manganese in the country, but we’re exporting it overwhelmingly as ore now, instead of as a beneficiated product with considerably higher value. We have also virtually got all the chrome in the world but, again, we’re exporting that as chrome ore, which is leading to a lot of logistical problems.

We need to export it as the higher value less logistically burdensome ferrochrome, which goes into stainless steel where there is a big demand. The steps are now being taken on the acquisition front, but also a new technology is being developed. African Rainbow Minerals, led by Dr Patrice Motsepe, has come up with a new technology, SmeltDirect, which uses much less electricity and can take low grade product and convert it in all the ferroalloy situations. So, the hopes are now that we, as a nation, unite and get the ferroalloy market back. We must all strive to thrive in 2025.

Kamwendo: South Africa’s platinum group metals are being hailed in Europe as ‘super power metals’.

Creamer: How great to see the growing awareness of the world to the value of platinum group metals, which we host in bigger quantity than anyone else on the planet. So, when it comes to platinum group metals, we have got the endowment, and now also the acknowledgement. You find in Europe, they are now referring to platinum group metals as super power metals, because of what they can do across such a broad area. Not only are they making the cities air clean, because they are in the auto catalyst of vehicles, but as those vehicles change, these super power platinum group metals are finding more and more applications.

They are involved with the generation of green hydrogen, they are envisaged for clean aviation fuel. For heaven's sake they even play a role in anti-cancer drugs. I mean, that is how far they extend. So, it is wonderful to see these being promoted. The big promoters, at the moment, where Johnson Matthey. They have been seeing all the key people in Europe as the international company that they are. But as far as South Africa goes, they are also local and have been for many decades. If you go down the road to Wadeville, in nearby Germiston.

You’ll see a big sign Johnson Matthey, they have been here for a long time, so they know the whole platinum group metals story and hopefully platinum group metals will get the proper recognition in the world and enjoy the super power status that they are now being given.

Kamwendo: The New Year has started off well for the emerging green hydrogen economy.

Creamer: If you hear the words green hydrogen, think again of platinum group metals. They are hand in glove, the two of them. Now, the New Year began fantastically because the Prime Minister of India announced two big new green hydrogen hubs. The first one, I think, is involved in about 27-billion dollar investment. But that is just the start. India is going to move deeper and deeper into green hydrogen.

We also saw in Europe, Hydrogen Europe, saying what a good start to the new year when it comes to green hydrogen. We saw Germany, very active. France, very active. China, active. Japan has always been active, of course, and for many, many years they have been promoting green hydrogen. Even in South Africa, we have nine green hydrogen projects gazetted and we have also got the new energy vehicle, the NEV, incentive, a big incentive for new energy vehicles.

That is not just a battery electric vehicle, but also the green hydrogen vehicle, the fuel cell electric vehicle, with the potential for our taxi fleets to go green as Anglo has been achieving in Berlin, Paris, Brussels and soon Hamburg. So, a very good start to 2025.

Kamwendo: Thanks very much. Martin Creamer is publishing, editor of Engineering News & Mining Weekly.

Edited by Creamer Media Reporter

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