Chromium/Platinum Group Metals

http://www.bdlive.co.za/

JAPAN plans to encourage a “platinum valley” in South Africa similar to the US’s Silicon Valley, minister in the Japanese embassy in Pretoria Ken Okinawa told BDlive in an exclusive interview last week.

“What we want to do is encourage South Africa to establish a kind of platinum valley here similar to Silicon Valley in California. This facility would aim to find new uses for platinum, while also addressing issues such as job creation and beneficiation,” he said.

To promote this, a senior Japanese expert in fuel cells would shortly come to South Africa, he said.

Government-led projects have supported the commercialisation of fuel cells for many years in Asia, Europe and North America, and this has led to cost reduction, technological advancements and customer acceptance.

Yoshinori Tanaka of the national policy unit in Japan said in 2012 that the need for platinum group metals was likely to increase as more fuel cells that used platinum as a catalyst were installed in cars and homes.

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http://www.miningweekly.com/page/americas-home

JOHANNESBURG (miningweekly.com) – The South African economy could no longer afford the damaging “blame game” under way in the crucial mining sector, which needed to take urgent steps to prepare for the inevitable next commodities boom, Xstrata Alloys executive director Mike Rossouw said on Wednesday.

Speaking during a national radio debate on SAfm’s AMLive, hosted by Dhashen Moodley, Rossouw described South Africa as being “100% dependent” on mining to grow and transform its economy in that the country’s secondary and tertiary sectors were totally mining dependent in some cases and largely dependent in all cases.

The current mining decline was worsening South Africa’s already negative balance of payments at a time when the country needed money to grow and transform.

“We really need to understand mining’s role as a dynamo of the South African economy,” Rossouw added, to support from former Anglo American South Africa head Kuseni Dlamini, who called for recognition to be given to the mining industry’s advances on virtually every single front.

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http://www.streetwisereports.com/

Violent South African mining labor strikes shocked the globe in 2012, but the resulting negotiations underway could create more stable supply flows in the long term—that’s how CPM Commodity Analyst Erica Rannestad sees it. In this interview with The Metals Report, Rannestad discusses the key developments that could signal a price rise and which producers could clean up big on high-priced PGMs.

The Metals Report: Erica, the platinum group metals (PGM) sector created a lot of buzz at the beginning of this year. What can investors expect in the coming 12 months?

Erica Rannestad: There’s going to be a lot of development in labor and wage negotiation structures in South Africa. It could potentially improve labor conditions in the platinum mining sector, which would provide more certainty about supply flows.

The PGM markets are highly concentrated, meaning that both supply and demand are heavily reliant on only a few sources. On the supply side, about 75% of platinum mine supply comes from South Africa.

These metals are primarily industrial commodities and their prices move in tandem with industrial activity, mostly in the auto sector. At present, there is weakness in platinum prices because demand from the European auto sector is weak and contracting. During the next 12–18 months, growth could improve in the European auto market, which would be positive for platinum prices.

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http://www.slate.com/

The country is the best source for metals critical for making lower-emission vehicles.

In May, security officials confronted 500 protesters at a chromium mine in Rustenburg, South Africa. Rubber bullets were fired, and 10 people were hospitalized. This is just the latest in a series of wildcat strikes turned violent in South African mines. Most notably, 34 miners died during a confrontation between miners and police in August at a platinum mine in Marikana.

These strikes are the result of rapidly deteriorating labor relations in the South African mining industry. Mining companies are facing increased financial pressure from rising costs and low global metal prices. They must also contend with rolling blackouts, which is crucial in the energy-intensive mining industry. This harms routine mining production and profits. As a result of these difficulties, companies are considering downsizing and laying off workers in an attempt to return to profitability.

Understandably, mine workers are not happy about the possibility of losing their jobs. They are also demanding higher wages because their salaries are not keeping up with the rapidly rising cost of living. To top this all off, rival labor unions are attempting to win workers’ support by making seemingly impossible-to-meet demands of mining companies. For instance, the National Union of Mineworkers wants to increase wages for gold and coal miners up to 60 percent.

The rival Association of Mineworkers and Construction Union—which has successfully poached enough members from the NUM to represent a majority of platinum miners—is expected to put in similarly ambitious wage demands.

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http://www.miningweekly.com/page/americas-home

JOHANNESBURG (miningweekly.com) – The global platinum market experienced a deficit of 375 000 oz in 2012, owing to a steep decline in output from South Africa, platinum group metals authority Johnson Matthey’s ‘Platinum 2013’ report has revealed.

Published on Monday, the report found that primary platinum supply fell by 13% to 5.64-million ounces, its lowest level in twelve years. Total platinum demand for the year was down by 0.6% to 8.05-million ounces, while recycled platinum came to 2.03-million ounces, marginally less than in 2011.

Platinum recycling from end-of-life autocatalysts fell in Europe and North America, while the price of platinum averaged $1 552/oz in 2012, $169 lower than in 2011, prompting collectors to hoard stock, while awaiting better price opportunities.

However, the decline in recovery from this source was partly offset by greater recycling of platinum jewellery scrap in China. Platinum shipments by South African producers slumped by 16% to 4.1-million ounces during the year under review, with at least 750 000 oz of production lost to strikes, safety stoppages and the closure of some marginal mining operations.

Meanwhile, gross demand for platinum in autocatalysts rose by 1.7% to 3.24-million ounces.

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