JOHANNESBURG (miningweekly.com) – Platinum demand received a R2.6-billion boost on Tuesday when South Africa’s State-owned Public Investment Corporation (PIC) joined forces with Anglo American Platinum (Amplats) to promote the development of innovative and competitive technological uses of platinum-group metals (PGMs).

By each committing R1.3-billion to the first venture capital fund of its kind specialising in pioneering technologies and businesses that make use of PGMs, the PIC and Amplats have become cornerstone investors in the new, independent AP Ventures, which is led by a specialist global investment team that previously formed part of Amplats’ earlier investment in PGMs opportunities.

“This investment will stimulate and sustain the demand for PGMs in the long term, benefitting our clients and preserving the long-term mineral wealth for all South Africans,” said PIC CEO Dr Daniel Matjila.

The world needs solutions to renewable energy integration, resource scarcity and a growing global population.

“Technologies powered by PGMs are providing solutions to these problems in areas such as hydrogen infrastructure, fuel-cell electric mobility, water purification and medical devices,” said AP Ventures managing partner Andrew Hinkly in a release to Creamer Media’s Mining Weekly Online.

Wholly owned subsidiary, Anglo Platinum Marketing Limited, has subscribed for interests in two AP Ventures-managed funds that will invest in PGM-using pioneering technologies and businesses, with existing investments in the first fund and the new investments in the second.

Amplats will transfer its existing PGM Investment Programme investments in Altergy Systems, Food Freshness Technology Holdings, Greyrock Energy, HyET Holdings, Hydrogenius Technologies, Primus Power and United Hydrogen Group to the new fund, to give it the independence to attract additional outside investment and allow AP Ventures to increase the scale of its activities, said Amplats CEO Chris Griffith of his company’s decision to pass the programme on to independent management.

Developing demand for PGMs has been a long-standing strategic priority of Amplats, which in 2009 committed $10-million to PGM-based technology start-ups and later pledged six times more for early stage and growth capital investments.

Headquartered in London, AP Ventures is committed to opening a further office in South Africa and to raising additional capital from other investors.

While platinum demand is crucial to sustaining employment in the PGM mining sector, the potential for PGM-linked job creation in the local manufacturing sector is also presented in the areas of hydrogen infrastructure, fuel cells, energy storage, water purification, sensors and durable electronics.

The PIC is already a significant investor in the platinum mining industry and regards the long-term sustainability of the industry as being critical to long-term returns of its portfolios.