Anglo American Hopes to Incubate Platinum Demand By Supporting Fuel Cell Production

Anglo American Platinum (LSE:AAL) is hoping to encourage platinum demand by helping to set up production of fuel cell based products in South Africa, Bloomberg reported. Platinum is used as a catalyst to generate electricity in the cells.

As quoted in the publication:

Amplats, as the Johannesburg-based unit of Anglo American Plc is known, is among producers that see fuel cells consuming as many as 600,000 ounces of platinum a year by 2025. Fuel cells can be used to bring power to areas where supply is constrained. Platinum prices are down more than 40 percent since August 2011.

“What our strategy has been is to establish the technology for rural applications in South Africa, so we invested a lot of money to get to the level where the product is capable of going to market,” Andrew Hinkly, Amplats’ executive head of marketing and sales, said in the southern Eastern Cape province, where it showed fuel cells used to power charging stations for tablets and computers in schools. “We’re willing to invest further to make sure that the manufacturing can happen in South Africa.”

Amplats will exit any manufacturing venture as soon as the business proves to be successful, Hinkly said on Friday.

Click here to read the full Bloomberg article.