Anglo American Platinum and the Public Investment Corporation (PIC) have teamed up to boost demand for PGMs through a $100 million each investment into platinum group metals (PGMs) focused venture capital funds.
The $200 million investment will be managed through an independent fund management business, AP Ventures which is led by two experienced former Anglo Platinum Marketing Limited (APML) executives.
The move reflects concern that PGMs demand, and mainly its industrial applications, is facing an uncertain future. South Africa which hosts about 80% of global platinum reserves is heavily exposed to this uncertainty which explains the involvement of the PIC in this venture. The PIC which manages funds of the Government Employees Pension Funds (GEPF) is also hoping that this investment will benefit the localisation angle.
PIC CEO, Daniel Matjila, said the PIC is already a significant investor in the platinum mining industry and regards the long-term sustainability of the industry as being critical to long-term returns of its portfolios. The $100 million investment “will stimulate and sustain the demand for PGMs in the long term which should preserve the long-term mineral wealth for all South Africans. In addition, the potential for localisation of these technologies in South Africa, contributes to sustaining jobs in the PGM mining sector and planning for creation of jobs in the manufacturing sectors.”
The interest for Anglo American Platinum are clear, It is the largest platinum miner in the world. Anglo American Platinum CEO, Chris Griffith, said developing the market for PGMs is a strategic priority for Anglo American Platinum. “The launch of AP Ventures is an exciting new development which will support the growth of PGM technologies and increase PGM demand. Through this transaction, we are hoping to facilitate the application of cutting-edge technological advances and broad innovative thinking to address mining’s major challenges,” said Griffith.
The companies said in a statement the funds have been established to invest globally in companies which support the development of innovative and competitive technological uses of PGMs. AP Ventures will invest in pioneering technologies and businesses harnessing the high-performance characteristics of PGMs to address global challenges such as renewable energy integration, resource scarcity and a growing population. This includes: hydrogen infrastructure; fuel-cell electric mobility; energy storage platforms; water purification; sensors; durable electronics; and medical devices.
Griffith said the initiative “is a clear example of the use of collaborative partnerships to connect people for the betterment of the industry and we are grateful to have had the support of the Public Investment Corporation in bringing the Funds to fruition.”
Matjila added that the “As a leading global institutional investor, this investment further demonstrates our support of the United Nations Sustainable Development Goals.”