JOHANNESBURG, Aug 29 (Reuters) - Impala Platinum's

CEO said on Thursday he saw little prospect of new

platinum mines being built in South Africa as investors struggle

with a price slump amid uncertainty over future demand for

platinum-group metals due to growth in EVs.

Johannesburg-based Impala, which reported an 87% slump in

annual profit on Thursday, said its halted projects in South

Africa and Zimbabwe were unlikely to be revived as the growing

electric vehicle (EV) sector weighs on the outlook for future

demand of the metal.

"It's highly improbable that you're going to see material

investment in new platinum group metal production in South

Africa," CEO Nico Muller said on a media call.

Impala, which has mines in South Africa, Zimbabwe and

Canada, is curbing new investment after profit in the year

through June 30 plunged 87% to 2.4 billion rand ($135.43

million).

Impala has also shortened the life of its Canadian palladium

operations amid a slump in prices for the metals used in devices

that curb toxic vehicle emissions.

Muller said investors now balk at spending on new mines,

which take as many as 20 years to build.

While the plight of the industry is blighted by lower prices

currently, the other challenge is "the long term state of

electrification (of vehicles)", Muller said.

"I'm not convinced that any shareholder or company is going

to see a clear and attractive return for development in new

assets," he said.

Impala will place its Two Rivers project on care and

maintenance, after halting a planned 5.7-billion rand investment

at the mine jointly owned with African Rainbow Minerals

.

This is in addition to spending curbs at the North Hill

project in Zimbabwe where a $134 million investment was

initially planned and job cuts in South Africa.

($1 = 17.7210 rand)