Harvest Communications
Aug 25, 2025
South Africa Remains World's Largest Platinum Supplier
Industry Fundamentals Show Resilient Growth
The global platinum market size was valued at USD 7.10 billion in 2024 and is projected to reach from USD 7.42 billion in 2025 to USD 10.55 billion by 2033, growing at a CAGR of 4.5% during the forecast period (2025-2033). This robust growth trajectory reflects the metal's critical role in automotive catalysts, industrial applications, and emerging technologies.
South Africa played a pivotal role in increasing global platinum production, accounting for 70.8% of the global total in 2024.
However, traditional mining methods in the established Merensky and UG2 reefs present mounting challenges. These narrow, one-to-three-meter thick seams require dangerous, labor-intensive operations that are becoming increasingly costly as deposits deepen after decades of extraction.
Supply-Demand Dynamics Create Investment Opportunity
The platinum market faces a compelling supply-demand imbalance. The platinum market recorded a deficit of 995,000 oz for full year 2024, which is 46% higher than previously forecast, as total demand exceeded eight-million ounces for the first time since 2019 compared with supply at 7,293,000 oz. Automotive platinum demand is projected to reach an eight-year high in 2025.
This structural deficit, combined with platinum's role in hydrogen fuel cells and emerging battery technologies, positions the sector for sustained growth despite near-term price volatility.
Spotlight: Platinum Group Metals Leads Mining Innovation
Platinum Group Metals Ltd. (NYSE American: PLG) exemplifies the next generation of platinum mining. The company's Waterberg Project represents a paradigm shift from traditional South African operations.
Unlike century-old mining methods requiring vertical shafts and dangerous underground work, Platinum Group Metals reports improved FY2024 results and significant Waterberg Project updates, including 23.41M oz mineral reserves and $569M after-tax NPV. Project shows $6.50B cash flow potential.
CEO Frank Hallam explains the competitive advantage:
"We discovered the Waterberg deposit in 2011. It's shallow, at about 140 meters vertical, but the most important feature is that it's thick – over 100 meters thick in places."
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This unique geology enables mechanized mining with remote equipment, significantly reducing labor costs and safety risks while improving operational efficiency.
The project shows strong cash flow potential of $6.50B and reasonable capital requirements of $946M. The company has also secured a US$50.0 million ATM program with net proceeds used for the Waterberg Project pre-construction work, engineering, potential phase one development, and a Saudi Arabia smelter partnership.
Investment Outlook
For metals and mining investors, platinum presents a unique value proposition: structural supply deficits, diversifying industrial demand, and innovative mining technologies reducing operational risks.
Companies like Platinum Group Metals, with modern, mechanized operations and strong project economics, are positioned to capitalize on the industry's transformation from labor-intensive legacy operations to technology-driven extraction.
Research and Markets: South Remains Top Platinum Supplier