NEWS
NON-FERROUS   MINERALS  

Don't bet on platinum miners boosting supply on price surge

The recent jump in platinum-group metals prices is boosting miners’ profits, but that doesn’t mean they are likely to increase supply anytime soon, according to the world’s No. 1 producer.

Prices for platinum, palladium and rhodium have all gained in recent months, boosting earnings for miners in top supplier South Africa. The so-called rand basket price for the industry has increased by 20 to 25 percent this year, said Anglo American Platinum Ltd. Chief Executive Officer Chris Griffith.

Still, new supply will be limited. It takes five to seven years to open a new mine from scratch and there are other constraints to consider like processing capacity and the availability of water, the CEO said in an interview. While there are some expansion projects underway, that supply is already accounted for in market estimates, he said.

Any new production will probably replace declines elsewhere, rather than expanding total supply, which is forecast to remain flat over the next decade, Griffith said. Amplats, as the company is known, is studying plans to boost its own production by expanding its flagship Mogalakwena mine.

“We can bring metal to the market probably faster than anyone can, and that’s four to five years away,” Griffith said. “Very few companies in South Africa have the ability and real estate they can develop new mines on.”

As well as other constraints such as water, there’s very little spare processing capacity in the country, he said.

The company estimates that it will probably take 18 to 20 months before carmakers start substituting platinum in for pricier palladium in their autocatalysts, the CEO said.

News No: 4299
Date: 2019/04/10 - 09:23
News Source: MINING.COM

platinum miners  metals  South Africa  Anglo American  Mogalakwena 

Comments:

Leave a Comment:

   
   
   
 

South Africa: Iron Ore Exports Down 21% in Feb’19

South Africa iron ore exports down 21% in Feb'19: South African iron ore exports in Feb'19 recorded at 5.53 MnT, down 21% as against 7.05 MnT in Jan'19. As per sources, the exports dropped amidst Saldanha port maintenance in Feb'19.On yearly basis, the exports increased marginally as compared to 5.25 MnT in Feb'18.
 

Antofagasta to decide on $3B Centinela mine expansion by 2021

Chilean copper miner Antofagasta Plc (LON:ANTO) will make a decision about going ahead with a $3B expansion of its Centinela mine, located in the country’s north, by the end of next year or in 2021.
 

Anglo vows to quit Los Bronces $3B expansion if it affects nearby glaciers

Global miner Anglo American (LON: AAL) will abandon plans to expand its Los Bronces copper mine in Chile if any potential damage to the nearby glaciers and ground water is identified.
 

Indian Ferro Chrome Prices Resurges Amid Improved Chinese Market Conditions

Indian Ferro Chrome prices increased amid improved global market conditions. In China, there is decrease in VAT rates – from 16% to 13% which would have been effective from 1st Apr’19, but the notification is still awaited.
 

$6 billion private capital ready to invest in mining

Private capital tracker Preqin says in an report, that contrary to expectations, 2018 was another bumper year for the industry, particularly for natural resources investments.
 

Chile's Codelco copper output drops in 2018, profits plunge

Chilean state miner Codelco produced slightly less copper in 2018 than the year before, the company reported on Friday, as it continued to contend with declining ore grades and rising costs at its aging mines.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners