Manufacture of Basic Precious and Non-Ferrous Metals Industry in South Africa 2024

Although local production of basic precious and non-ferrous metals has remained fairly constant over the past few years, producers’ turnover was affected in 2023 by lower prices in response to subdued world GDP growth. South African exports of basic precious and non-ferrous metals decreased in 2023.

Geopolitical tensions and increasing demand from energy transition applications and China’s recovering industries, have caused most prices to increase in 2024. Industry challenges include inconsistent supply, higher electricity costs, and the pressure to decarbonise products.

Opportunities

• Growing local demand for aluminium from several industries.
• The possible establishment of a local zinc refinery.

Challenges

• Inconsistent supply and increasing cost of electricity.
• Pressure to decarbonise products.
• There is a need for players in the PGM industry to develop new markets for their products, as demand from the automotive industry will decline over the long term due to the phasing out of internal combustion engines.

Trends

Aluminium recycling is rising, leading to an increase in local secondary aluminium production. Aluminium’s use in the automotive industry, packaging, furniture and renewable energy is increasing. As gold production is decreasing, Rand Refinery has to source increasing amounts of material from outside the country. As internal combustion engines are being phased out, demand for PGMs from the automotive industry is declining.

Outlook

The World Bank expects base metal prices to rise slightly in 2024 and 2025 due to increased global industrial activity and growth of clean energy technologies. Aluminium will increase as consumption outpaces production, largely due to demand from the green energy, packaging and electric vehicle industries.

Similarly, world refined copper usage is forecast to outstrip production as the metal’s use in electric vehicles and renewable energy equipment increases. The platinum price is expected to decrease marginally and palladium significantly, despite higher demand forecasts. South African platinum-group metals producers are optimistic about long-term demand and prices.

Report Coverage

This report on the manufacture of basic precious and non-ferrous metals in South Africa includes aluminium cobalt, copper, gold, lead, manganese, platinum group metals and silver. There is comprehensive information on production, sales and exports, notable players, corporate actions, regulation, global production and price trends, input costs, environmental issues and technological developments.

There are profiles of 19 companies such as platinum group metals producers Anglo American Platinum, Impala Platinum, Northam and Sibanye-Stillwater, copper producers such as Palabora Copper and Copper 360, aluminium producers such as Hillside Aluminium, Hulamin Wispeco and Insimbi, and precious metals refiner Rand Refinery.