Business / Economy
Zimbabwe tops global platinum supplies
12 Nov 2013 at 14:00hrs | Views
GLOBAL platinum supplies are expected to rise 1,6 percent this year to 5,74 million ounces, aided by higher output from Zimbabwe, UK-based refiner Johnson Matthey said.
Local platinum firms Zimplats, Unki Platinum, Mimosa Mining Co are expected to produce 400 000 ounces of the precious metal this year, up 18 percent from a year earlier, Johnson Matthey said in its 2013, Platinum 2013 Interim Review yesterday.
"Supplies of platinum will rise by 1,6 percent to 5,74 million ounces, with higher output from Zimbabwe accounting for most of the gains," John and Matthey report said.
Rhodium output may rise 14 percent to 33 000 ounces. The report said the increase in Zimbabwe's platinum output was largely due to the ramp-up at an expansion project Zimplats.
The project will add 90 000 ounces of platinum production capacity, taking Zimplats' annual total to 270 000 ounces by 2015, the report added.
"You have certainly got some expansion still kicking in," Mr Peter Duncan, general manager for market research at Johnson Matthey, told journalists during a presentation in Johannesburg.
He said once existing projects have reached full ramp-up, "it's going to take another big chunk of capital investment." Zimbabwe is the world's third largest platinum producer after South Africa and Russia, and has second known reserves after South Africa.
Meanwhile, the global deficit in the platinum market is forecast to increase this year to 605 000oz, from 340 000oz last year.
Platinum supplies from South Africa are forecast to rise by less than 1 percent to reach 4,12 million ounces next year.
Production losses due to one-off factors such as strikes and safety stoppages totalled around 100 000oz in the first half.
Further strikes in the final quarter of 2013 could eliminate any increase in South African supplies.
Autocatalyst demand will fall by 2 percent to 3,13 million ounces, reflecting weakness in the world's two largest markets for diesel cars, Europe and India. There will also be some additional thrifting by those carmakers still using platinum in gasoline catalysts.
However, the use of platinum in heavy-duty applications will rise, with a greater number of diesel trucks meeting strict Euro VI limits.
Gross demand for platinum in jewellery will slip by 1,4 percent to 2,74 million ounces.
Purchases by Chinese jewellery makers will ease slightly this year after a very strong 2012, but higher demand is expected in Europe, North America and India.
Local platinum firms Zimplats, Unki Platinum, Mimosa Mining Co are expected to produce 400 000 ounces of the precious metal this year, up 18 percent from a year earlier, Johnson Matthey said in its 2013, Platinum 2013 Interim Review yesterday.
"Supplies of platinum will rise by 1,6 percent to 5,74 million ounces, with higher output from Zimbabwe accounting for most of the gains," John and Matthey report said.
Rhodium output may rise 14 percent to 33 000 ounces. The report said the increase in Zimbabwe's platinum output was largely due to the ramp-up at an expansion project Zimplats.
The project will add 90 000 ounces of platinum production capacity, taking Zimplats' annual total to 270 000 ounces by 2015, the report added.
"You have certainly got some expansion still kicking in," Mr Peter Duncan, general manager for market research at Johnson Matthey, told journalists during a presentation in Johannesburg.
He said once existing projects have reached full ramp-up, "it's going to take another big chunk of capital investment." Zimbabwe is the world's third largest platinum producer after South Africa and Russia, and has second known reserves after South Africa.
Platinum supplies from South Africa are forecast to rise by less than 1 percent to reach 4,12 million ounces next year.
Production losses due to one-off factors such as strikes and safety stoppages totalled around 100 000oz in the first half.
Further strikes in the final quarter of 2013 could eliminate any increase in South African supplies.
Autocatalyst demand will fall by 2 percent to 3,13 million ounces, reflecting weakness in the world's two largest markets for diesel cars, Europe and India. There will also be some additional thrifting by those carmakers still using platinum in gasoline catalysts.
However, the use of platinum in heavy-duty applications will rise, with a greater number of diesel trucks meeting strict Euro VI limits.
Gross demand for platinum in jewellery will slip by 1,4 percent to 2,74 million ounces.
Purchases by Chinese jewellery makers will ease slightly this year after a very strong 2012, but higher demand is expected in Europe, North America and India.
Source - Herald
