Implats extracts PGMs and associated base metals by processing and refining the ore mined. This involves concentrating, smelting and refining. Once smelted, the matte is dispatched to the refineries where it is processed, firstly at the base metal refinery, where copper, cobalt and nickel are extracted, and then at the precious metal refinery, where finally the PGMs, gold and silver chloride are produced.

Moves to encourage additional downstream beneficiation (manufacturing) have been initiated by government, with the DMR having been given overall responsibility for overseeing this in the mining industry as a whole in the government’s initial draft strategy document on beneficiation.

A highly complex beneficiation proposal was presented to the platinum mining sector industry initially, in response to which the three major platinum producers, Anglo Platinum, Implats and Lonmin, presented an lternative proposal which has been accepted in principle by the DMR. A final proposal is expected from the DMR in due course. The DMR’s prime concern is that there be a sufficient supply of PGMs available to meet local demand, and these three platinum producers have undertaken to retain at least 10% of local production for the local beneficiation market. Implats currently supplies around 20% of its local production to local jewellery and autocatalyst manufacturers and in addition, recycles a significant volume of PGMs from spent autocatalysts.

The government’s beneficiation strategy involves cooperation among several departments, in addition to the DMR, the Departments of Trade and Industry, Science and Technology, Public Enterprises and Finance. The Department of Science and Technology in particular, is overseeing initiatives aimed at developing the technology, expertise and knowledge necessary to provide the R&D capacity to drive future beneficiation.

Mintek, a technological research organisation, has been given responsibility for co-ordinating R&D into precious metal beneficiation. Six research projects are currently underway, mainly related to platinum and palladium. Also under investigation is the potential of producing PGM chemicals and the viability of investing in R&D technology for the establishment of a local industry to supply the fuel cell industry with its platinum requirements.

Implats has co-funded studies into both downstream* and side-stream* beneficiation and plays a role in facilitating the supply of metal to local jewellery manufacturers by offering extended terms of payment and preferential metal leasing (particularly to Silplats, which produces platinum jewellery in South Africa, and to Rochoet).

The use of PGMs in the local automotive sector has been affected by changes to the Motor Industry Development Program (MIDP), which has been replaced by the Automotive Production Development Plan (APDP). This is currently being investigated by government to make it more amenable to the catalytic convertor industry and further announcements are expected.

It is most likely that the future draft of the beneficiation strategy will encourage PGM producers to contribute to R&D programmes and skills development in South Africa, in line with government’s overall strategy to make the South African economy more knowledge-based than resource-based.