http://www.miningweekly.com/page/americas-home
JOHANNESBURG (miningweekly.com) – Security of platinum supply is concerning platinum end-users, Johnson Matthey GM research Peter Duncan said on Tuesday.
Speaking to Mining Weekly Online in a video interview (see attached), Duncan said the lack of capital investment even in the replacement of platinum production capacity in the last few years was making it difficult for South Africa to grow its supply at a time of promising demand prospects.
“There is some concern amongst particularly the automotive industry original-equipment manufacturers about security of supply,” he said. A fall in productivity is estimated to have lost South Africa some 300 000 oz and further strikes or stoppages in the final quarter of 2013 could eliminate any increase in South African supplies.
Production losses owing to one-off factors such as strikes and safety stoppages totalled 100 000 oz in the first half. The uncertainty of platinum supply comes against a forecast of rising demand from expected increased upcoming vehicle and many new phases of platinum-demand-boosting emission standards to be introduced globally next year.
Johnson Matthey, in its swansong platinum review – following Anglo American Platinum’s decision to undertake its own market development from next year – forecasts an ongoing platinum supply deficit scenario into 2014.
The end-user exasperation stems from supply certainty being needed for the design of autocatalysts for the various phases of emission legislation.
“It’s not an industry that can change quickly in terms of its design of catalysts and they are stressing a little bit about security of supply going forward,” Duncan said in the attached Mining Weekly Online video interview.
Helping to fill the supply gap are finite aboveground stocks, which cause prices to rise when they run out and result in engineers looking for alternatives.
For the rest of this article, click here: http://www.miningweekly.com/print-version/johnson-matthey-peter-duncan-2013-11-12