Still, Cutifani cautioned that abundant and high-grade deposits won’t guarantee investment. “There are many other factors besides mineral endowment that influence where investors decide to put their money, all of which drive reassurance to investors about the security of their investment over time,” he said.
Good PGM fundamentals
Anglo American Platinum CEO, Chris Griffith, said fundamentals for platinum-group metals will remain good for a “number of years”.
The improving market has enabled producers to increase their profitable supply and has drawn greater interest in platinum stocks from international investors, he said. The company known as Amplats is studying a number of projects for its “next wave of growth,” according to the CEO.
The regulatory environment in South Africa has improved, but the government needs to resolve the issue of community disruptions around mines, which is leading to huge losses for producers, Griffith said. Labour disruptions, crime and xenophobia are deterring investors, while policy differences between government and ruling African National Congress are also a concern, he said.