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Valterra CEO: Platinum price rally brings producers back from the brink

Valterra Platinum CEO Craig Miller stated on Monday that the platinum price rally in the first half 2025 helped most mines to recover from losses, but the industry was still far away from adding new production.

South African miners, who account for 70% of the world’s platinum supply cut unprofitable production in the last two years, after metal prices crashed, amid warnings about the terminal decline of the industry.

The price of metal used in catalytic converters to reduce vehicle emissions soared by 36% during the second quarter. This was due to the increase of Chinese imports as well as the heavy flow of stocks into the NYMEX under threat of U.S. tariffs.

Miller said in an interview that "about 90% of the industry now makes money or is just breaking even compared to 40% at the end last year."

He added that prices were still too low for the industry, to add new production.

You need another 50% increase in price to encourage that new production. Miller stated that there is still a long way to go.

Valterra, previously Anglo American Platinum reported a 81% drop in its half-year profits, due to lower production and costs associated with the demerger of Anglo American.

In the six-month period ending June 30, headline earnings fell from 6.5 billion rand to 1.2 billion rand (67.62 millions).

Valterra announced an interim dividend per share of 2 Rand, down 79% on the payout from a year ago.

In June, the world's largest PGM producer in terms of value merged and is now listed separately on the Johannesburg and London stock exchanges. Meanwhile, global mining giant Anglo restructuring its business to concentrate on copper.

(source: Reuters)