While Australia has moderate geological potential for platinum, according to Geoscience Australia, the bulk of platinum group elements (PGEs) are found in South Africa, currently responsible for some 70% of global platinum production.

Russia and Zimbabwe are other historically strong producers.

We'll look at two ASX shares with a focus on platinum below.

But first…

What is platinum?

An attractive silvery metal, you'll often find platinum used in jewellery.

But it's platinum's resistance to heat, corrosion and chemicals that's seen the metal make it onto the Australian government's critical minerals list. Which the government defines as a metallic or non-metallic element that has two characteristics:

1. It is essential for the functioning of our modern technologies, economies or national security and
2. There is a risk that its supply chains could be disrupted.

Platinum is critical in vehicle production, used in catalytic converters and electrical contacts. You'll also find it used in things like your laptop screen.

In 2020, Australia produced half a ton of PGEs out of a total global production of 380 tonnes.

So, which ASX shares are on the hunt for the rare element?

Two ASX shares on the hunt for platinum

First up we have small-cap explorer, Orion Minerals Ltd (ASX: ORN), which focuses on both gold and platinum.

On the platinum front, its primary Jacomynspan Project is located in South Africa.

In Australia, Orion also holds mineral rights across various tenements in Victoria's Walhalla Project area, which are prospective for platinum group elements.

The company has a current market cap of $81 million. It hasn't quite been cashing in on platinum yet, however, with shares down 33% over the past 12 months.

On the larger end of the ASX share spectrum, we have Zimplats Holdings Ltd (ASX: ZIM), with a market cap of $2.4 billion.

The Zimbabwe based explorer has a majority stake in the Ngezi mine. Located in the northern part of the nation, Ngezi contains among the largest platinum reserves in Southern Africa.

Over the past 12 months that have seen the All Ordinaries Index (ASX: XAO) fall 10%, the Zimplats share price has gained 6%.

The ASX platinum share also pays a juicy trailing dividend yield of 11%, unfranked.

You can find out which ASX shares are cashing in on cobalt, lithium, rare earths, and vanadium in more of our 'Mineral Monday' series.

The post Mineral Monday: What you need to know about platinum and which ASX shares are cashing in on it appeared first on The Motley Fool Australia.