Predictions about global warming at Cop27, held in Sharm el-Sheikh in Egypt, paints a gloomy picture of the future. As calls for a Just Energy Transition (JET) gets louder, demand for precious metals and PGMs increase. PGMs will be required in great quantities to bring about the energy transformation.
Regenx Tech Corp’s rebranding involved, amongst others, spinning out all the company’s remaining iron ore assets in addition to changing the company’s name.
According to Greg Pendura, Regenx is now a pure CleanTech play developing environmentally friendly processing technologies to recover precious metals.
“The new brand symbolizes Regenx entrance into a new, dynamic sector by building off the past foundation,” says Pendura.
Green push opens opportunities
As the world’s investors start placing increased pressure on the extractive sector in terms of Environmental Social and Governance (ESG) standards, Regenx’s strategic move to formulate a new corporate identity could thus not have come at a better time.
Regenx specializes in processing platinum and palladium from spent diesel converters. According to Pendura the company hopes to attract green funds and interest groups focused on CleanTech and reducing carbon emissions.
PGM demand outweighs supply
According to a recent report by Dr David Davis published in Mining Weekly, “the future quantum of global demand for PGMs significantly outweighs global supply from 2023.”
The reports’ authors predict a PGM supply squeeze from South Africa and Russia. Moreover, an increased demand for PGMs because of an energy transition, will exacerbate the mismatch and widen the gap between demand and supply
According to the International Energy Agency certain PGM contents are needed in substantial quantities to produce green hydrogen, which is in growing demand. Hydrogen is seen in many quarters as the energy solution of the future.
According to Davis’ report “green hydrogen has become a key pillar of decarbonisation in the same way as platinum is inextricably linked to vehicle emission standards.”
“Global PGM mine supply, particularly platinum mine and secondary recycling supply, will not be able to support platinum demand for electrolysers, green hydrogen and other transport and sectors.”
“Furthermore, China’s thirst for PGMs will further contribute to upward price pressure as the supply dwindles.”
Total platinum supply in 2022 is forecast to decline 8% (-626 koz) year-on-year to 7,514 koz. The recycling of platinum from spent autocatalysts fell by a noteworthy 20% year-on-year (-82 koz) in Q2’22, with automotive recycling forecast to be down 15% (-210 koz) in 2022.
Platinum is the third most traded precious metal after gold and silver. The market is massive. However, the platinum/palladium recycling business is often overlooked, even though it is a annual USD25-billion sector.
Benefits of recycling
As the world desperately attempts to curb carbon emissions and the appetite to buy new cars returns after the Covid-19 hiatus, it is expected that demand for platinum and palladium in catalytic converters will continue rising.
Considering that a standard catalytic converter is made up of between 3-7 grams of platinum/palladium (depending on the manufacturer and model), and that the world will continue purchasing vehicles according to more stringent emission standards (which requires more converters) there will be a sustained and consistent supply of spent converters in the future.
Regenx’s innovative technology was designed to reduce harmful pollutants emitted during the extraction process of traditional smelters. Smelters in America have become increasingly reluctant to take in spent converters as the world continues its quest to slash carbon emissions.
The world’s mining operations alone cannot meet or sustain global demand for PGMs. This has created space for recycling to help meet the shortfall. Moreover, sourcing recycled metals is generally cheaper than mining and generates up to 90% less CO2.
In a circular economy, the recycling sector will become increasingly important. Although traditional mining will remain the bedrock on which the mining industry is built, CleanTech, from companies like Regenx, offers innovative ways of processing, or recycling, with the aim of reducing greenhouse gas emissions.
