Valterra Platinum says input inventories are healthy despite Middle East conflict

South Africa’s Valterra Platinum has managed to maintain healthy inventory levels of critical operational inputs, such as diesel and lubricants, despite uncertainty created by the US-Israeli war on Iran, the company’s CEO said on Monday.

Stable supplies of diesel, lubricants and explosives are essential to keep mines running. Disruptions to these inputs — particularly during geopolitical tensions that can upset global fuel flows — can quickly translate into operational delays, higher costs and reduced output.

“With our own local suppliers, we’ve had extensive engagement with them in terms of ensuring that we have sufficient diesel, lubricants, explosives … being delivered to our operations,” Craig Miller told Reuters on the sidelines of London Platinum Week.

“I’m really pleased to say that we’ve been able to maintain pretty healthy inventory levels of those critical materials.”

He added that Valterra had also identified other suppliers of inputs to offset any supply risk.

“We haven’t needed to pull on those additional suppliers just yet,” he added.

South Africa’s platinum group metals producers are also exposed to disruption in jet fuel markets, as the country’s heavy reliance on imported fuels could constrain their ability to move metal to customers.

The level of jet fuel inventory and overall supply of the product to South Africa has been a focus for platinum traders since the start of the Iran war.

Miller said Valterra does not physically purchase any jet fuel, but added that the company was discussing with customers how to prepare for potential disruptions to supplies.

Valterra made its trading debut on the Johannesburg bourse as a standalone unit in May last year, completing a spin-off from parent Anglo American.

(By Veronica Brown and Polina Devitt; Editing by Emelia Sithole-Matarise)