eBusiness Weekly
Tinashe Makichi
The World Platinum Investment Council’s third quarter report for 2017 report has revealed that a handful of platinum operations in both South Africa and Zimbabwe are currently under review and may close if a profit cannot be achieved.
The report said production from Zimbabwe is estimated to fall by 10 percent to 440 00 ounces (koz).
“That said, a handful of operations in both South Africa and Zimbabwe are currently under review, and may close if a profit cannot be achieved,” said the report
Global refined platinum supply is forecast to drop by two percent to 5,935 koz in 2017.
South African output is predicted to fall by one percent (-25 koz) to 4,230 koz this year.
The report said further mine/shaft closures and restructuring plans have been announced in recent months and furnace maintenance is expected to offset otherwise stable production levels.
There have been fewer unplanned disruptions (safety-related stoppages), particularly in the first half of 2017, and cost optimisation strategies implemented over the past year mean that some
North American supply is also forecast to decrease by five percent to 375 koz as a Canadian producer transitioned to a single furnace flow sheet.
Output from Russia is projected to decline by one percent to 710 koz this year, owing to depletion at surface operations.
The report said a reduction in producer stocks is forecast for 2017, and could be in the order of 35 koz.
“There was a very small net sale during the first nine months of the year (5 koz), though stock reduction is likely to take place in the second half of 2017 as furnace maintenance impacts on refined production levels,” said WPIC.
Global platinum supply is forecast to be 7,830 koz in 2017, a drop of one percent year-on-year, as mining production is projected to be 95 koz lower, while recycled platinum supply grows by 5 koz.
Total mining supply is forecast to be 5,970 koz in 2017, down two percent f from 6,065 koz in 2016 owing to reduced output in South Africa, Zimbabwe, North America and Russia. Overall, secondary supply of platinum is forecast to be little changed year-on-year in 2017.
Jewellery recycling is expected to drop 10 percent to 565 koz this year as recycling in China returns to a more normal level, having been boosted by a return of stock in 2016, but this is mostly offset by continued growth in platinum recovered from spent autocatalysts.
The report said production from Zimbabwe declined to 95 koz owing to furnace maintenance work. Russian supply fell to 185 koz, which is lower than the 205 koz produced in the second quarter (boosted by processing of pipeline material), but in line with typical historical third quarter production levels.
North American supply increased to 95 koz (+12 percent quarter-on-quarter) as a result of furnace maintenance in Canada that negatively impacted production levels during the period under review.
