PIC Increases Stake in Sibanye-Stillwater as Finnish Lithium Project Gains Momentum
The Public Investment Corporation (PIC), Africa’s largest asset manager, has increased its stake in Sibanye-Stillwater, now holding over 15% of the diversified mining company. This move signals confidence in Sibanye-Stillwater’s long-term growth, particularly in light of its promising lithium project in Finland, which has recently received financial backing through a R10 billion green loan package.
The PIC’s decision to bolster its stake follows comments by CIO Kabelo Rikhotso, who highlighted the continued relevance of platinum group metals (PGMs) in the green economy. While demand for PGMs, traditionally used in catalytic converters for internal combustion engines, has declined due to the rise of battery electric vehicles (BEVs), Rikhotso emphasized that PGMs may find a new role in the hydrogen economy, which could provide future demand.
Sibanye-Stillwater, one of South Africa’s largest private-sector employers, has faced financial challenges over the past two years, largely due to a decline in PGM prices. The miner reported a R7 billion loss for the first half of 2024, a stark contrast to the R7.8 billion profit in the same period in 2023. The company has responded by restructuring its operations, particularly its mines in Montana, reducing palladium and platinum production by up to 45% to return those assets to profitability.
Despite these difficulties, the company’s Keliber lithium project in Finland offers a promising future. Sibanye-Stillwater plans to start producing battery-grade lithium hydroxide, a crucial component for electric vehicle batteries, using its own ore. This project aligns with Europe’s strategy to reduce reliance on China for critical raw materials and meet the EU’s goal of zero-carbon emissions for new cars by 2035.
Sibanye-Stillwater has also diversified into battery metals and recycling operations, positioning itself within the circular economy. CEO Neal Froneman remains optimistic about lithium demand, despite a current oversupply, predicting significant growth in demand as the BEV market expands in Europe.
