By Helen Reid

JOHANNESBURG, South Africa (Reuters). Anglo American (LON:] Platinum (Amplats), has been contacted by carmakers and manufacturers looking for palladium, in light of Western sanctions against Russia’s top producer. CEO Natascha Vijoen stated Wednesday.

Amplats received information from palladium users who have not signed any existing agreements with the company. Viljoen shared this with Reuters during an interview at the PGMs Industries Day in Johannesburg.

Viljoen stated that market uncertainty is leading to “desperation”, as consumers of metal try and find reliable supplies.

Russia accounts for between 25-30% and 30% of the global supply of palladium. This metal is used in automakers’ engine exhausts to lower emissions.

“Wherever we are able to accommodate them [new customers]We will try our best to look after long-term customers after we have done so, Viljoen added, “but cannot promise anything concrete.”

Long-term contracts are a common option for miners, which makes surplus supplies scarce.

Viljoen explained that South African Palladium would need to grow to the point where it can replace Russian-produced metals. It could take up to five years.

She said that Russian metal could be accessed by other routes, such as China. Therefore, the Russian supply is more likely to change than stop completely.

Viljoen suggested that the Russian sanctions may lead to a premium for South African palladium and a lower price on palladium imported into China.

Amplats, the world’s largest producer of platinum group metals (PGMs), produced 4.3 Million Ounces of PGMs by 2021.