Valterra Platinum, a South African mining company focused on the production of platinum group metals, stated that it maintains healthy inventory levels of critical operational inputs, such as diesel and lubricants, despite the uncertainty generated by the war between the U.S., Israel, and Iran, the company’s CEO said on Monday, May 18.
A stable supply of diesel, lubricants, and explosives is essential to keeping mines operational. Disruptions in these supplies, particularly during geopolitical tensions that could affect global fuel flows, can quickly lead to operational delays, increased costs, and reduced production.
“We have been extensively engaged with our own local suppliers to ensure we have sufficient diesel, lubricants, and explosives for delivery to our operations,” Craig Miller told Reuters on the sidelines of London Platinum Week.
“I am very pleased that we are able to maintain quite healthy inventory levels of these critical materials,” adding that Valterra has also identified alternative suppliers of inputs to offset potential supply risks: “We have not yet needed to turn to those additional suppliers.”
South African producers of platinum group metals are also vulnerable to disruptions in the aviation fuel market, as South Africa’s heavy reliance on imported fuel could limit its ability to transport metal to customers.
The level of aviation fuel reserves and the overall supply of this product to the country have been a cause for concern among platinum traders since the start of the war with Iran.
Miller stated that Valterra does not purchase aviation fuel directly, but is discussing with customers ways to prepare for potential supply disruptions.
Valterra debuted on the Johannesburg Stock Exchange as a standalone entity in May of last year, completing its separation from its parent company, Anglo American.
