AI helping to develop alloy for use in new applications, Valterra Platinum reports

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation. Can you use AI to find new markets for platinum group metals (PGMs)? "The simple answer is yes," was the reply of Valterra Platinum CEO Craig Miller to Mining Weekly during the latest media roundtable of this PGMs mining and marketing company. (Also watch attached Creamer Media video.) "The work that we're doing in the market development space through the partnerships that we have, the investments that we've been making in some companies, is exactly that – applying technology to utilise and get to solutions much quicker than you would have done historically, by utilising AI, and that's particularly around how you mix various metals and come up with an alloy, which can then be used in new applications. "We're already starting to see some of that coming through. It's still relatively small amounts of ounces, but the potential is very much there, and we're quite excited about that." In addition, is the use of PGMs in the AI space. "We think that, conservatively, there's probably 200 000 oz to 300 000 oz of PGMs used today in AI-related developments, and we can see that growing sort of four- or five-fold over the next five to eight years." Valterra last week presented a set of stunning half-year financial results, which included a headline earnings surge of 1 633%. Mining Weekly: You expressed considerable bullishness about future demand growth. Share some of that bullishness with us and the reasons for your confidence. Miller: About two-thirds of PGMs go into the automotive sector, in internal combustion engine vehicles as well as hybrid vehicles. We continue to see relatively good demand from our customers in the automotive sector, but we also recognise that the share of battery electric vehicles will continue to grow. As a result of that, we need to create new demand segments, particularly in industrial applications, also in jewellery, and also in other forms of mobility through fuel cell electric vehicles. As a company, we've entered into several partnerships – with Sibanye-Stillwater here in South Africa, with Johnson Matthey, with Umicore in Germany, and with Pujing Chemicals in China – to advance the opportunities that we see in the industrial space for PGMs. It's on the back of what we've seen from some of the early stages of those partnerships – as well as opportunities to substitute gold for platinum in both the electronics area as well as in jewellery – that you can see additional demand segments materialising, which gives us the confidence of that underlying support for the long-term outlook for PGMs. SANDSLOOT PROJECT With its eye also on supply, Valterra is developing a high-grade underground PGM project beneath the Sandsloot openpit at its Mogalakwena PGM flagship mine. This project aims to offset declining surface ore grades, with potential full production expected after 2030, pending a 2027 investment decision. Unlike other Bushveld Complex reefs, the reef height is between 40 m and 120 m, with a 45º dip on average, characteristics well suited for bulk, underground mechanised mining. The 4 g/t to 6 g/t is pointing to a substantial potential value-rather-than-volume-based growth uplift that facilitates the use of existing concentrator and tailings facilities, an advantage that is set to save billions of rands in upfront capital expenditure and operating expenditure. Mining Weekly: You report that trial mining is scheduled to take place at the emerging new Sandsloot underground mine before the end of this year ahead of a final investment decision. Tell us about that? Miller: Given the significant quality and scale of the Mogalakwena operation, we saw the potential of going underground at Mogalakwena and specifically the Sandsloot area, which is different to where the openpit is. Thr...