JOHANNESBURG (Reuters) -Impala Platinum’s CEO said on Thursday he saw little prospect of new platinum mines being built in South Africa as investors struggle with a price slump amid uncertainty over future demand for platinum-group metals due to growth in EVs.
Johannesburg-based Impala, which reported an 87% slump in annual profit on Thursday, said its halted projects in South Africa and Zimbabwe were unlikely to be revived as the growing electric vehicle (EV) sector weighs on the outlook for future demand of the metal.
“It’s highly improbable that you’re going to see material investment in new platinum group metal production in South Africa,” CEO Nico Muller said on a media call.
Impala, which has mines in South Africa, Zimbabwe and Canada, is curbing new investment after profit in the year through June 30 plunged 87% to 2.4 billion rand ($135.43 million).
Impala has also shortened the life of its Canadian palladium operations amid a slump in prices for the metals used in devices that curb toxic vehicle emissions.
Muller said investors now balk at spending on new mines, which take as many as 20 years to build.
While the plight of the industry is blighted by lower prices currently, the other challenge is “the long term state of electrification (of vehicles)”, Muller said.
“I’m not convinced that any shareholder or company is going to see a clear and attractive return for development in new assets,” he said.
Impala will place its Two Rivers project on care and maintenance, after halting a planned 5.7-billion rand investment at the mine jointly owned with African Rainbow Minerals.
This is in addition to spending curbs at the North Hill project in Zimbabwe where a $134 million investment was initially planned and job cuts in South Africa.
($1 = 17.7210 rand)
(Reporting by Nelson Banya and Felix Njini in Johannesburg;Editing by David Goodman and Helen Popper)
