[miningmx.com] — ZIMBABWE’S emergence as an important platinum metals group (PGM) player has been underscored in Johnson Matthey’s interim review of the market, which stated production from South Africa’s neighbour would this year counterbalance lower supply from other regions.
According to the report, released on Tuesday, platinum output from Zimbabwe is expected to grow by 17.3% to 405,000 ounces this year. Although this figure represents only about 7% of the expected global supply of 6.1 million oz for the year, it is already double the contribution the country made in 2008.
The significance of its contribution would increase in coming years as the three main producers, Zimplats (a subsidiary of Impala Platinum), Mimosa (Implats and Aquarius Platinum) and Unki (Anglo Platinum), ramp up infrastructure and production.
“Zimplats had an exceptionally strong start to 2010, as the Phase 1 expansion project achieved steady-state levels less than a year after commissioning,’ read the report. “In the January to June period, production of platinum in matte rose by 88% to 92,00oz.’
A second round of expansion is expected to lift platinum production at Zimplats to around 270,000oz annually. While Mimosa is operating at full capacity, the commissioning of a concentrator plant at Unki will further boost the region’s capacity.
As is the case with platinum, Zimbabwe is also making its contribution felt with the production of palladium. It is expected to produce 385,000oz of palladium in 2010, up 13% from 2009, representing 5% of world output.
According to the Johnson Matthey report, global platinum supply is expected to remain stable in 2010 at 6.01 million oz, compared to 6.025 million oz in 2009.
The biggest supply drop stems from North America, expected to be 19% lower at 210,000oz.
In a well-publicised report on the South African platinum industry, RBC Capital Markets analyst Leon Esterhuizen said Zimbabwe might be “stealing a march on South Africa’ by attracting international investments in its PGM assets.
“With talk of nationalisation and a growing sense of unease as South Africa approaches the next election in 2012, it is not inconceivable that the benefit that South Africa has enjoyed in terms of having no PGM production competition over the recent couple of years is reversed now with South Africa representing the less impressive picture,’ the report read.
