Timothy Harvey, Chief Executive Officer and Founder of NTree, which promotes and markets metals Exchange Traded Commodities, comments on the recent unrest in South Africa and the potential impact on the supply of platinum group metals (PGMs):

“In the PGM world, South Africa is a superpower, responsible for 78% of global platinum production and 37% of global palladium production. However, despite the size of its reserves and share of global production, the country is often beset by supply disruption concerns. The recent rioting and looting on the back of the arrest of former president Jacob Zuma once again highlights the potential for disruption to South African supply of key minerals.

“In 2020 South African mining disruptions from power outages and Covid-related mining closures resulted in platinum and palladium production declining approximately 25% and 13% respectively. Whilst it appears that the recent rioting has not affected the production of platinum and palladium, the widespread violence disrupted ports in Durban and Richards Bay, as well as key rail lines between Johannesburg and Durban, and the N3 highway connecting Gauteng and KwaZulu-Natal provinces.

“In a tight metals market which is expected to get even tighter as the world transitions to clean energy, the supply chain vulnerability in one of the largest global metal producers is a major risk and one that is difficult to hedge. This naturally begs the question, is there a risk premium on the supply of South African PGMs and do the supply forecasts for the clean energy transition metals incorporate the risks of disruption in emerging markets?”

NTree

NTree provides sophisticated investors with an education, advisory, and distribution service to access global commodities through a range of active and passive funds.  It will promote the GPF ETCs, providing investors with relevant and current information on metals so that they can make informed investment decisions.

www.ntree.co.uk / www.metal.digital (for commodity-focused material)

Sustainably sourced

Good Delivery Rules’ set by LBMA, LPPM, and LME for precious and base metals are universally acknowledged as the de facto international standard for due to the strict criteria that apply to responsible mining operations and protection of human rights.

LBMA established the Responsible Gold Guidance for Good Delivery Refiners that follows the five-step framework due diligence of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals.

Global Palladium Fund

The Global Palladium Fund was created to make the world’s precious, base and rare-earth metals accessible to everyone and to advance the development of world-changing technologies in essential areas such as aerospace, electronics, and the automotive. We care about our planet deeply and stand ready to ensure that its resources are spent wisely where they are needed most.

GPF is proud to be supported by Nornickel. Its products are in high demand across the globe and it has operations in the Russian Far North, Finland and South Africa. 

For more information, visit: www.gpf.global

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