A dedicated Special Economic Zone (SEZ) for platinum development could be created in South Africa, it has been reported.

The country's Department of Trade and Industry (DTI) is looking at establishing a central "platinum hub", according to Mining Weekly.

"Some of the provinces and our local companies have been working on moving into the commercialisation of fuel-cell technology, so definitely this could be one area that we designate an SEZ," DTI director-general Lionel October told the publication.

The government is keen to support platinum and fuel cell development outside of areas that are the traditional industrial zones.

"There have been major developments in terms of diversifying the sources of demand for platinum, especially in the general area of energy and fuel cells," explained Mr October.

His comments come after the chief executive officer of mining giant Anglo American, Cynthia Carroll, told a United Nations convention that South Africa is ideally-placed to establish clean sources of electricity, as well as thousands of jobs, by developing fuel cell technology and infrastructure.

"With platinum at its heart, a fuel-cell industry would support South Africa's drive for jobs," she said.

Meanwhile, Anglo American's platinum mining arm Amplats has said it will trial a fuel cell-powered mine locomotive later this year.

Mr October believes that the time is right for the SEZ as fuel cells move from the research phase to commercial deployment on a wide scale

"We're at a nexus point that, if we do the right thing now, we can take fuel cells to a slightly higher level," he told Mining Weekly.

According to the news provider, South Africa's Department of Mineral Resources (DMR) has earmarked platinum for value-chain development, "backing up disparate research work for decades by the likes of platinum promoter Johnson Matthey".

It is thought that fuel cell technology presents South Africa with a huge manufacturing opportunity due its large reserves of platinum.

Last year, Amplats and US-based Altergy Systems announced a partnership with South Africa's Department of the Science and Technology (DST) to establish a new company, Clean Energy Incorporated, which would market and distribute fuel cells in South Africa.

Sources:

DTI mulling special economic zone for platinum (17/01/12)

Amplats to test fuel-cell powered mine loco March/April (16/01/12)

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