Minerals Council flags demand risks despite US tariff exclusions for energy minerals

New US tariffs on selected South African mineral exports exclude platinum group metals (PGMs), which are widely used in hydrogen, fuel cell and emissions reduction technologies. However, the Minerals Council South Africa has warned that deteriorating global economic conditions could still affect demand and pricing for PGMs and other energy-critical minerals.

Minerals Council Chief Economist Hugo Pienaar said, while PGMs – along with coal, gold, manganese and chrome – are excluded from the tariffs, the threat to global growth poses a risk to the mining sector. “Despite the exclusions, we remain concerned about the adverse impact on business and consumer sentiment and the resultant feedthrough to business investment, consumer spending and, ultimately, global real GDP growth caused by this unprecedented upheaval in world trade.”

Platinum, palladium and rhodium are used to make auto catalysts for vehicle exhausts. If global vehicle sales decline, demand for PGMs could fall, leading to short-term price volatility.

However, the Minerals Council remains positive about the long-term outlook for PGMs. “With respect to PGMs, there is an opportunity for increased market development, given the potential that remains with internal combustion engines, the green hydrogen economy and other yet-to-be-developed technological applications that our members are driving through research,” said Minerals Council CEO Mzila Mthenjane.

South Africa is a leading global supplier of several minerals critical to the energy sector including PGMs, manganese, chrome and vanadium. In 2024, PGMs accounted for 76.3% of South Africa’s R65.3 billion in mineral and precious metal exports to the US.

South Africa’s mineral exports to the US

Source: South African Revenue Service customs data