[miningmx.com] – SOUTH African platinum production would fall by 16% in 2016 and 2017 as capital investment in the sector declined, said Venmyn Deloitte in a report commissioned by the World Platinum Investment Council (WIPC).
Platinum production from South Africa declined by over 500,000 oz a year, or 11%, from 2008 to 2013. Over the same period annual capital investment declined by more than 40% to R17bn a year in the sector. Capital investment in 2014 was R13bn and published capital investment for 2015 is R11bn.
“Using the rate of capital expenditure alone as an indicator of likely future output, refined platinum output from South Africa will fall by an estimated 16% below the 2015 level in 2016,” said Trevor Raymond, director of research at WIPC.
“If capital expenditure continues in 2016 at the same level as that in 2015 output in 2017 is also expected to be 16% below the level in 2015,” he said.
