LONDON – Valterra Platinum of South Africa has successfully maintained robust inventory levels of essential operational inputs, including diesel and lubricants, despite the regional instability and uncertainty stemming from the aggressive actions of the US and Israel against Iran. This assurance was provided by the company’s CEO on Monday.
The consistent availability of diesel, lubricants, and explosives is paramount for the uninterrupted operation of mining activities. Any disruption to these crucial supplies – especially amidst geopolitical tensions that can severely impact global fuel distribution – can swiftly lead to operational delays, increased costs, and a reduction in output.
Craig Miller, Valterra’s CEO, stated during London Platinum Week, “We have engaged extensively with our local suppliers to ensure a steady and sufficient delivery of diesel, lubricants, and explosives to our operations.” He expressed satisfaction, adding, “I am truly pleased to report that we have managed to uphold very healthy inventory levels of these critical materials.”
Furthermore, Miller highlighted that Valterra has proactively identified alternative suppliers for inputs, thereby mitigating potential supply chain risks. “We have not yet needed to activate these additional supplier agreements,” he noted, underscoring the company’s preparedness.
South Africa’s producers of platinum group metals also face vulnerabilities in jet fuel markets. The nation’s significant reliance on imported fuels could potentially hinder their capacity to transport metals to international clients.
The status of jet fuel inventories and the overall supply of this product to South Africa have been a primary concern for platinum traders since the onset of the conflict in Iran.
Miller clarified that Valterra does not directly procure jet fuel. However, he confirmed that the company is actively collaborating with its customers to devise strategies for potential disruptions in jet fuel supplies, demonstrating a forward-thinking approach to global challenges.
Valterra Platinum commenced trading as an independent entity on the Johannesburg bourse in May of last year, following its spin-off from Anglo American.
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