Supply Chain

Platinum Supply Chain: From Mine to Market

South Africa dominates platinum supply (~72% of global output) from the Bushveld Complex, the worlds largest layered igneous intrusion. Mining is predominantly underground along narrow reefs (Merensky, UG2, Platreef), making it labor-intensive and costly. Russia (Nornickel) provides ~10%, Zimbabwe (Zimplats, Mimosa) ~8%, and recycling ~25%. The supply chain runs through concentration (flotation), smelting (matte), base metal refining, and precious metal refining to produce platinum sponge. Processing takes 5-6 months from ore to refined metal. The long-term demand thesis centers on hydrogen: PEM fuel cells and electrolyzers both use platinum catalysts. However, automotive fuel cell adoption has lagged far behind battery EVs, creating uncertainty about platinums future demand trajectory.

Production Geography

Global Platinum production is led by South Africa, which accounts for approximately 72% of world output, followed by Russia. The full list of major producing nations includes South Africa, Russia, Zimbabwe, Canada, United States. This geographic concentration means that disruptions in key producing regions can have outsized impacts on global supply and pricing.

Extraction Methods

Platinum is extracted using the following primary methods:

• Underground mining (narrow reef stoping)
• Open-pit mining (Platreef)
• Mechanized mining

Processing and Intermediate Products

Platinum is primarily sourced from Merensky Reef, UG2 Chromitite, Platreef. After extraction, the raw material undergoes multiple processing steps including beneficiation, chemical treatment, and refining to reach the purity levels required by downstream industries. Typical ore grades range from 3-8 g/t PGM.

Key Supply Chain Participants

The Platinum supply chain involves these major companies:

Supply Chain Vulnerabilities

Key vulnerabilities in the Platinum supply chain include concentration of 72% of production in South Africa, limited processing capacity diversification, and long lead times for new mining projects. The high supply risk rating reflects the severity of these concentration risks and the difficulty of rapidly establishing alternative supply sources.