South Africa produces about 80 percent of the world’s platinum, but its mining industry faces tough challenges that keep output low and costs high. These problems create ongoing shortages in the global platinum market.
One big issue is production constraints right now. Mines deal with operating challenges, rising labor costs, and power shortages that slow everything down. For example, companies like Valterra Platinum Ltd. struggle with these in the Bushveld Complex, home to key sites like Amandelbult, Mototolo, and Modikwa. Learn more at https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html.
Power sector problems hit hard too. Frequent blackouts and unreliable electricity force mines to stop or cut back, as seen in South African output drops. In the third quarter of 2025, global refined mine supply fell 4 percent year on year, with South Africa down 2 percent to 1,028 thousand ounces. Details in this report: https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf.
Low platinum prices add pain. From 2024 into mid-2025, prices dipped below $1,000 per troy ounce, hurting companies like Sibanye Stillwater. They cut production targets by nearly 200,000 ounces, faced big asset impairments, and reported losses. Restructuring brought job cuts and higher all-in sustaining costs due to lower-grade ore and fixed expenses. Check the analysis here: https://ca.investing.com/analysis/sibanye-stillwater-2025-a-turning-point-200620377.
Even with some recovery, overall numbers stay weak. South African mining production fell 0.2 percent year on year in August 2025, dragging global PGM supply. The platinum market faces a deficit of 692 thousand ounces in 2025, down from earlier estimates but still marking the third straight year of shortage. See https://iol.co.za/business-report/companies/2025-11-19-south-africa-to-lead-global-pgm-supply-rebound-next-year-after-dragged-output/ and https://www.miningweekly.com/article/balanced-2026-platinum-market-forecast-dependent-on-global-trade-tension-let-up-2025-11-18.
Rules on ownership create hurdles as well. Mining laws require 26 percent of assets held by historically disadvantaged groups, like Black South Africans, which slows investments and expansions. Old mine dumps are getting fresh looks for clean energy uses amid rising demand, but regulatory shifts add uncertainty. More at https://www.climatechangenews.com/2025/11/26/south-africas-platinum-mine-dumps-get-a-second-look-as-clean-energy-lifts-demand/.
Lack of new capital keeps things stuck. Without big investments, mines can’t grow, worsening deficits tied to South Africa’s dominant role.
Sources
https://www.streetwisereports.com/article/2025/12/15/platinums-impressive-ascent-could-continue-through-2026.html
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
https://ca.investing.com/analysis/sibanye-stillwater-2025-a-turning-point-200620377
https://iol.co.za/business-report/companies/2025-11-19-south-africa-to-lead-global-pgm-supply-rebound-next-year-after-dragged-output/
https://www.climatechangenews.com/2025/11/26/south-africas-platinum-mine-dumps-get-a-second-look-as-clean-energy-lifts-demand/
https://www.miningweekly.com/article/balanced-2026-platinum-market-forecast-dependent-on-global-trade-tension-let-up-2025-11-18