South African new mines provide jobs and dollars

New mines in South Africa will provide jobs and dollars in coming years. Part of the reason is the focus on critical minerals. The other major reason is the high price of precious metals.

The PGM Day in Johannesburg saw several speakers say that new mines are needed to supply the increased demand from artificial intelligence (AI) and the energy transition. Evidently, this is because supply is not easily expanded. A new mine takes 10 years and R20 billion. This highlights that mining is a long term operation. Explicitly, some mines in Europe had a mine life of a thousand years. Most mines started now will have a life of more than 30 years.

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Platinum deficit

The World Platinum Investment Council (WPIC) said the platinum market had its third consecutive annual deficit in 2025. The deficit has grown from 688 000 ounces in 2023. It rose to over 1 million ounces in 2025. This depleted above ground stocks to only five months of demand cover.

Pt annual deficit data was sourced from World Platinum Investment Council

Previously, high prices encourage markets to self-solve. Emphatically, they do this by encouraging new mines. Alternatively, they result in substitution to cheaper materials.

Generally, previous high price episodes showed that both platinum supply and platinum demand can be inelastic over near-to-medium term time horizons. Significantly, two-to-five-year platinum market forecast anticipates that stocks will be depleted by the end of this decade.

Consequently, this is where the new platinum mines will ease the supply constraint. The new mines will provide jobs and dollars. Additionally, the dollars earned from exports will strengthen the rand. This in turn will help reduce inflation. Lower inflation will encourage a cut in interest rates. This happened last year.

New mines and expansions

Ivanhoe Mines officially opened the Platreef Mine in Limpopo, South Africa, on 20 November 2025. Marna Cloete, the chief executive officer of Ivanhoe Mines, said they were taking a phased approach to expansion. The phase 1 was what she called the ‘baby’ mine. This would have an annual production of 100 000 ounces. Phase 2 would expend this 450 000 ounces. Ultimately they were aiming at 1 million ounces annually.

Furthermore, Tharisa unveiled a $547 million (R9.238 billion) underground expansion plan for its platinum mine. This will extend production beyond 2035.

Southern Palladium will start its mine in June this year. It will ramp up production over the next three years.

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