MiningWeekly.com Audio Articles

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.

Platinum and palladium are among four precious metals included in new futures contracts launched in London, World Platinum Investment Council (WPIC) reports, amid New York-listed Intercontinental Exchange's commencement of trading precious metals derivatives in London.

Intercontinental Exchange's contracts, which also cover gold and silver, are linked to London's established daily benchmark price auctions and offer market participants an additional way to manage price exposure and risk. For platinum and palladium, the development could provide greater flexibility for investors and industrial users, although the impact on market liquidity will depend on trading activity and uptake, WPIC noted on LinkedIn.

Platinum and palladium was also given a major trading boost from September 28 when China gave international access to the trading of the two platinum group metals (PGMs) on the Guangzhou Futures Exchange (GFEX), where domestic exchange activity has been improving price discovery since the launch in November last year.

The GFEX's investment scope now reaches out to foreign institutional investors and giving them full access to platinum and palladium futures and options contracts.

On the GFEX, the form of the platinum and palladium being traded also goes beyond bar and includes sponge. This is tailor made for China where most industrial and automotive end-users of platinum and palladium much prefer it in the form of ready-to-use sponge.

Expected to result from international participation in platinum and palladium is price discovery and the emergence of increased arbitrage opportunity.

Interestingly, GFEX adheres to the technical specifications, quality standards and responsible platinum and palladium sourcing rules of the London Platinum and Palladium Market (LPPM) and entered the futures fray alongside the likes of Chicago Mercantile Exchange (CME), London's LBMA, Japan's Osaka Exchange as well as over-the-counter trading entities.

DEMAND OUTLOOK

Widening industrial uses for PGMs have been good for the demand outlook for the metals, which are hosted overwhelmingly in South Africa.

PGMs are needed, for example, for proton exchange membrane (PEM) electrolysers that generate hydrogen as well as in fuel cell electric vehicles (FCEVs) that convert the hydrogen back into electricity for mobility or stationary poser.

Reiterated in a report earlier this month is that Algeria and Tunisia have joined Italy, Austria and Germany in strengthening cooperation on the 3 300 km SoutH2 Corridor pipeline project, which aims to transport renewable hydrogen from North Africa to European markets in the early 2030s. The five countries signed a political declaration to support project development, financing and commercial partnerships.

Also, US Society of Piping Engineers and Designers president Javier Rubio has reported that the 18 green hydrogen projects under construction or in operation across Europe, China, India, and Saudi Arabia represent about $26-billion in announced and reported project investment, excluding projects without confirmed figures.

Japanese vehicle manufacturer Toyota regards hydrogen as an important energy source, WPIC has noted, in realising a carbon-neutral society. It introduced its first FCEV, the Mirai, in 2014 and has sold it in more than 30 countries and regions.

Since 2019, Toyota has also begun supplying fuel cell systems that generate electricity from hydrogen, and has provided more than 3 500 fuel cell systems to over 100 customers worldwide for applications such as buses, rail, and stationary generators. In partnership with others, Toyota has also developed hydrogen cartridge and hydrogen sauna, promoting decarbonisation in areas of everyday life as well.

Fuel Cell Works reports that...

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.

With Canada's Industry Minister Mélanie Joly having announced a $193-million investment for the aluminium sector under the Strategic Response Fund last week, federal department Innovation, Science and Economic Development Canada (ISED) says the two targeted projects will help maintain about 6 000 full-time jobs in Québec and across Canada, support 65 co-op student placements and strengthen collaborations with Canadian research institutions, post-secondary institutions and small- and medium-sized enterprises.

The first investment comprises $164-million for Rio Tinto's aluminium value chain in Saguenay–Lac-Saint-Jean as part of a $818-million strategy to strengthen production capacity and decarbonise the diversified miner's regional operations.

Rio plans to construct a new billet casting centre at the Alma smelter to support the production of value-added aluminium products and modernise anode baking furnaces at the Grande-Baie smelter through major infrastructure upgrades and equipment refurbishment.

The second investment that Joly allocated for support is that of Aluminerie Alouette. About $28-million will go to supporting the company's $135-million project to modernise and optimise its electrolysis operations.

These technological improvements will directly target energy performance, industrial competitiveness and the reduction of greenhouse-gas (GHG) emissions.

"By investing in transformational, emissions-reducing projects like Alouette's, we are increasing Canada's global competitiveness in the aluminium sector. As global tariffs put pressure on Canadian industries and reshape international trade dynamics, the government of Canada is investing in critical mineral resources, modernising the aluminium supply chain and protecting well-paying Canadian jobs," ISED states.

Rio Tinto aluminium Atlantic operations MD Sébastien Ross welcomes the federal support for Canada's aluminium industry, particularly as Rio itself is celebrating 100 years of aluminium production in Saguenay–Lac-Saint-Jean, and in the context of increased international competition.

"This investment is a real driver for accelerating modernisation, growth and the decarbonisation of our operations in the region. It's helping reinforce our value chain, support quality jobs and create the necessary conditions for continuing to invest, innovate and produce here in Quebec and in Canada," Ross adds.

In turn, Aluminerie CEO and president Claude Gosselin comments that with the fund's support the company can continue to modernise its operations, including improving energy efficiency and reducing GHG emissions.

"As the largest smelter in the Americas, we are proud to generate significant economic benefits for Canada, notably through about 1 000 quality jobs and hundreds of millions of dollars in purchases of goods and services. In a geopolitical context where uncertainty remains high, the government's support strengthens investor confidence and allows us to keep investing toward a sustainable future," Gosselin says.

Rio is the largest producer of primary aluminium in Canada with its Canadian hub in Montréal. Rio employs about 4 300 people in Québec alone, with an estimated 14 000 employees across its aluminium and mining segments in Canada.

In turn, Aluminerie is the largest aluminium smelter in North America, producing about 633 000 t of primary aluminium every year.

Canada has nine primary aluminium smelters, with the majority being in Québec and one other in British Columbia.

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.

Rio Tinto said on Friday it will invest $1.9-billion to develop the Kangwinan bauxite project in Queensland, Australia, replacing output from its ageing Andoom mine and lifting annual production capacity at its Weipa bauxite operations.

The miner said the investment would add 20-million tonnes of annual bauxite production in Weipa, with first output targeted in 2029 and full production expected by 2032.

Located in Queensland, Weipa is one of the world's largest bauxite mining complexes. It supplies the ore to make alumina and aluminium for applications ranging from construction and transportation to packaging and renewable energy infrastructure.

Kangwinan will replace production from the Andoom mine near Weipa as it reaches the end of its life this decade, while increasing Weipa's annual production capacity to about 44-million tonnes from around 38-million tonnes currently.

The development will also help offset the planned 2029 closure of Rio's Gove bauxite mine in the Northern Territory.

The announcement follows Rio's agreement last month to acquire the adjacent Aurukun bauxite project from Glencore and Mitsubishi, subject to regulatory approvals, as it seeks to extend long-term growth in the region.

Rio said the combined Amrun, Kangwinan and Aurukun operations are expected to support its Weipa bauxite business well beyond the middle of the century.

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.

Minor platinum group metals (PGMs), particularly iridium and ruthenium, are continuing to outperform, supported by robust demand from emerging technology applications, Valterra Platinum reported on Friday, October 23.

The price Valterra realised for iridium in the three months ended September 30 was $7 720/oz, compared with $4 287/oz in the corresponding period of last year. The price realised for ruthenium in the quarter was $1 583/oz, compared with $799/oz in the third quarter of last year.

The price of iridium is rising because of supply constraints combined with growing industrial demand from green hydrogen, AI, and electronics and the ruthenium from data centre and cloud computing demand.

The six PGM products of integrated producer Valterra are platinum, palladium, rhodium, ruthenium and osmium, along with associated metals such as gold and base metals such as nickel and copper.

The average realised basket price was R38 815/PGM ounce, or $2 383/PGM ounce, representing year-on-year increases of 15% in rand terms and 24% in dollar terms.

Although major PGM prices moderated quarter-on-quarter amid weaker automotive sales and broader macroeconomic concerns, they remained well above prior-year levels, the Johannesburg Stock Exchange-listed company stated in its third-quarter production report on the stock exchange news service (SENS).

Total PGM production, expressed as metal-in-concentrate containing five element (5E) PGMs and gold, decreased by 6% to 804 300 oz, driven by lower own-mined volumes and by weaker purchase of concentrate volumes.

Own-mined PGM production decreased by 5% to 511 900 oz, primarily driven by the impact of safety stoppages at the Amandelbult underground operation, where Olwethu Kutta lost her life in a fall-of-ground at Tumela in July, which Valterra CEO Craig Miller has described as being unacceptable. "Our thoughts are with her family, friends, and colleagues and we remain unwavering in our commitment to preventing a recurrence."

A call to action has been launched to strengthen safety leadership and controls across the business, supported by an independent review from industry-leading safety specialists.

"The findings and recommendations from these processes are being implemented across our operations as we continue to strengthen our safety culture and pursue our goal of zero harm," Miller reported.

Purchases of PGM concentrate decreased by 7% to 292 400 oz, reflecting reduced volumes from various third-party producers.

While refined third-quarter PGM production, excluding tolling, decreased by 41% to 576 900 oz, refined production for the nine months ended September was broadly in line with the prior year.

Owing to the lower refined production, PGM sales volumes decreased by 27% but, once again, sales volumes for the nine months ended September remained in line with the same period in 2025.

Guidance for 2026 remains unchanged, with metal-in-concentrate and refined production expected to be between three-million ounces and 3.4-million ounces.

Cash operating unit costs are expected to be at or around the upper end of the guided range of R19 000/PGM ounce to R20 000/PGM ounce owing to inflationary pressures on fuel, drill steel, chemicals and certain explosives. These inflationary pressures are associated with the ongoing Middle East conflict, coupled with the impact of the safety-related stoppages on production volumes.

Mitigation initiatives remain in place through operational efficiencies, disciplined cost management and procurement interventions. The targeted all-in sustaining cost remains at about $1 050/3E ounce.

"Looking ahead, production remains on track to be delivered within our 2026 guidance range, and we remain focused on operating safely, executing with di...

Mining Weekly Editor Martin Creamer discusses Rainbow Rare Earths recent lab success; the sale of South Africa’s aluminium value chain assets to Alcoa Corporation; and Andrada Mining's quadrupled-plus gross profit.