Top Platinum-Group Metal Producers of 2023: South Africa, Russia, and Beyond
Platinum-group metals (PGMs) include platinum, palladium, rhodium, and other metals prized for their durability, resistance to corrosion, and excellent catalytic properties. The automotive industry is the largest consumer of these metals, using them primarily in catalytic converters for vehicle exhaust systems. With a rebound and continued growth in auto production projected, particularly in developing markets, demand for PGMs is expected to increase, especially for platinum and palladium. However, supply constraints are expected as the platinum market is forecasted to move into a significant deficit in 2024 and beyond.
Most PGMs are produced by a small number of countries, predominantly South Africa and Russia. Yet, both nations face challenges: South Africa is experiencing electricity shortages, while Russia is dealing with ongoing geopolitical tensions. Below is a list of the top five PGM-producing countries in 2023, based on the latest data from the US Geological Survey.
1. South Africa
Platinum production: 120,000 kilograms
Palladium production: 71,000 kilograms
PGM reserves: 63 million kilograms
South Africa leads the world in platinum production, contributing 120,000 kilograms in 2023. The country also ranks second in palladium production, with an output of 71,000 kilograms. South Africa's Bushveld Complex is the largest PGMs resource globally, contributing significantly to annual platinum and palladium production. Impala Platinum Holdings (Implats) is a notable producer, with multiple operations including the Impala Rustenburg mine, Marula mine, and Bafokeng joint ventures. However, in 2023, production was lower compared to the previous year due to electricity disruptions and transportation issues.
2. Russia
Platinum production: 23,000 kilograms
Palladium production: 92,000 kilograms
PGM reserves: 5.5 million kilograms
Russia remains a major PGM producer, ranking second in platinum and first in palladium, with 23,000 kilograms of platinum and 92,000 kilograms of palladium produced in 2023. Norilsk Nickel, the world’s largest palladium producer, continues to invest in infrastructure to enhance production. However, the ongoing war in Ukraine and potential sanctions are raising uncertainties. In October 2024, concerns over possible sanctions against Russia's palladium production led to significant price increases.
3. Zimbabwe
Platinum production: 19,000 kilograms
Palladium production: 15,000 kilograms
PGM reserves: 1.2 million kilograms
Zimbabwe is an important PGM producer, with 19,000 kilograms of platinum and 15,000 kilograms of palladium produced in 2023. Zimplats, 87% owned by Implats, is the largest producer in Zimbabwe. In recent years, Zimbabwe introduced a policy requiring mining companies to pay royalties in both cash and refined physical metals, affecting key resources such as PGMs, gold, and lithium. The government also doubled its royalties for platinum miners in January 2024.
4. Canada
Platinum production: 5,500 kilograms
Palladium production: 16,000 kilograms
PGM reserves: 310,000 kilograms
Canada produced 5,500 kilograms of platinum and 16,000 kilograms of palladium in 2023, maintaining its position as the third-largest palladium producer. Most of Canada's PGM production comes from the Lac des Iles mine in Ontario, owned by Implats Canada. The country’s PGM reserves are relatively small, but exploration continues to discover new deposits. Additional production comes as a by-product from Canada’s primary nickel mines.
5. United States
Platinum production: 2,900 kilograms
Palladium production: 9,800 kilograms
PGM reserves: 820,000 kilograms
The United States produced 2,900 kilograms of platinum and 9,800 kilograms of palladium in 2023. The Stillwater Complex in Montana, owned by Sibanye Stillwater, is the only primary PGM-producing site in the country. However, in 2024, low palladium prices led Sibanye Stillwater to reduce production and lay off about 700 employees. The company cited Russian overproduction as a cause for depressed palladium prices, prompting Montana’s two US senators to introduce a bill to ban Russian palladium imports.
