Archive | Platinum Group Metals

Implats Sees Wider Loss as It Writes Down Rustenburg Assets – by Felix Njini (Bloomberg News – August 20, 2018)

Impala Platinum Holdings Ltd. said its annual loss will widen as the world’s second-largest producer of the metal takes a 9.7 billion-rand ($660 million) writedown, mostly on its struggling Rustenburg mining complex.

Implats, as the company is known, is shrinking the number of shafts at Rustenburg and said earlier this month it may cut about 13,000 jobs as focus shifts to newer, lower-cost mines.

The company has struggled to reduce expenses at Rustenburg and profit margins in the platinum industry have come under added pressure this year after prices for the metal sank to the lowest in a decade. Continue Reading →

Currency Shocks Knock Platinum to 10-Year Lows – by Peter Hobson (U.S News/Reuters – August 17, 2018)

LONDON (Reuters) – Platinum prices tumbled to 10-year lows as the collapse of Turkey’s lira rippled through markets and weakened the currency of top producer South Africa, underlining persistent oversupply of the autocatalyst metal.

Platinum has been caught in a broad sell-off as investors rush to the safety of the dollar, pushing it higher and making dollar-priced metals more expensive for buyers using other currencies.

But platinum, used mainly in emissions-reducing catalytic converters for vehicles and in jewelry, has fallen further than its precious metal peers. Continue Reading →

UPDATE 1-Russian miners explore payment schemes eschewing dollar – by Polina Ivanova (Reuters U.S. – August 15, 2018)

MOSCOW, Aug 15 (Reuters) – Two of Russia’s biggest mining companies said on Wednesday they were investigating rouble-based payments schemes, amid calls from Moscow to reduce the role of the U.S. dollar in Russian trade and so limit the impact of U.S. sanctions.

The Kremlin said on Monday that Russia favoured bilateral trade with all countries in their national currencies, rather than the dollar, but that the idea needed detailed work before being implemented.

Russia’s Norilsk Nickel, which vies with Brazil’s Vale SA to be the world’s biggest nickel producer and is the world’s top palladium producer, said on Wednesday it was discussing the possibility of settling payments in roubles with foreign customers that had signalled their readiness for such an arrangement. Continue Reading →

World’s Priciest Precious Metal Set to Blossom as Shortage Looms – by Rupert Rowling and Eddie van der Walt (Bloomberg News – August 3, 2018)

The world’s most expensive precious metal is set to get even pricier as a mining retreat in South Africa threatens a supply shortage.

Rhodium — a byproduct of platinum mining that’s used in the chemical sector and by the auto industry in catalytic converters — has more than trebled in value since the start of 2017. The silver-white element, named after the Greek word for rose, could go even higher as output is squeezed by the woes facing South Africa’s platinum industry.

With no primary mines for rhodium, supply will be cut as Impala Platinum Holdings Ltd. and Lonmin Plc shut unprofitable shafts to weather the lower platinum prices brought by the switch from diesel cars. Continue Reading →

South African platinum producer Implats to slash 13,400 jobs as costs bite – by Ed Stoddard and Tiisetso Motsoeneng (Reuters U.K. – August 2, 2018)

JOHANNESBURG (Reuters) – Miner Impala Platinum (IMPJ.J) will slash about a third of its workforce over two years in one of the biggest rounds of job cuts by one mining company in living memory in South Africa as the platinum industry faces a day of reckoning.

The number of platinum miners employed in South Africa, the world’s largest producer of the precious metal, has fallen from a peak of almost 200,000 in 2008 to 175,000 in the face of depressed prices and soaring costs, fuelling labour and social unrest.

Job cuts are politically sensitive in the country and Mines Minister Gwede Mantashe, a gruff former trade unionist, called Implats’ announcement on Thursday “a clear example of a company that is careless…Their reckless actions add injury to insult”. Continue Reading →

Zimbabwe mining: Platinum has promise and lithium looms large – by Tonderayi Mukeredzi (The Africa Report – July 11, 2018)

Harare: President Emmerson Mnangagwa desperately wants to show that he can turn the economy around and is looking for quick wins from the mining sector, which had been spooked by his predecessor’s indigenisation plans. Mnangagwa does not want to completely liberalise the sector, and the government still insists on majority local ownership for platinum and diamond mining projects.

A new mining bill now making its way through parliament proposes to force mining companies to list on the local stock exchange, though foreign minister Sibusiso Moyo told an audience at Chatham House in London on 25 April that the clause would be taken out.

Platinum is the main focus for miners, and in March, Cyprus-based Karo Resources signed a deal with a promise of $4.2bn in investment in the Mhondoro-Ngezi region. A lot of platinum goes into catalytic converters and other devices to reduce emissions on petrol-powered cars. Continue Reading →

2,500 Job Cuts Weren’t Enough for World’s No. 2 Platinum Miner – by Felix Njini (Bloomberg News – July 9, 2018)

(Bloomberg) — Impala Platinum Holdings Ltd. is facing some tough choices as the South African miner works to stem losses at aging shafts amid slumping prices for the metal.

The world’s second-largest producer has already cut 2,500 jobs in the year through June and says there may be more to come. Only three of the 10 shafts at its sprawling Rustenburg mining complex were making money as of March. Things have only gotten worse since then, with platinum prices dropping another 9 percent and hitting a nine-year low last week.

Implats, as the company is known, will announce the results of a strategic review of Rustenburg in September, said spokesman Johan Theron. The challenges facing the industry mean the miner can’t discount the possibility of more job losses, he said. The company employs about 31,000 people at its Rustenburg operations. Continue Reading →

Ongoing fuel cell developments kindle hope for platinum demand – by Martin Creamer ( – June 26, 2018)

JOHANNESBURG ( – Ongoing hydrogen fuel cell developments across the globe are kindling hope for an eventual significant increase in platinum demand.

This month alone, Hyundai Auto Canada took part in the official opening of Canada’s first retail hydrogen fuelling station operated by Shell and Hydrogen Technology & Energy Corporation, France announced that it was targeting 100 hydrogen fuel cell stations, a Toyota Mirai fuel cell vehicle refuelled at the new hydrogen station in Iceland,

Bulgaria’s Ministry of Transport announced plans for ten hydrogen fuelling stations to be installed in the country by 2025, Connecticut Governor Dannel Malloy announced the selection of four projects to install 52 MW of fuel cell power in the state, doubling Connecticut’s installed capacity to 100 MW, FuelCell Energy will install a 14.8 MW fuel cell system in the city of Derby, and a 7.4 MW system in the state capital of Hartford, and Bloom Energy will install a 10 MW system in the town of Colchester. Continue Reading →

Robert Friedland’s Ivanhoe Mines selling minority stake to China’s CITIC – by Niall McGee (Globe and Mail – June 12, 2018)

Robert Friedland’s Ivanhoe Mines Ltd. is selling a minority stake to a Chinese state-owned firm, securing an important financing source, as uncertainty lingers over how a new African mining code could affect the Canadian base metals miner.

On Monday, Ivanhoe announced it is selling 19.9 per cent of the company by issuing 196.6 million shares in a private placement to CITIC Metal, a subsidiary of CITIC Ltd., China’s largest conglomerate.

The shares are being issued at $3.68 apiece, a 13-per-cent premium to its Friday close. CITIC Metal, which is set to become Ivanhoe’s biggest shareholder, has also agreed to advance Ivanhoe a US$100-million loan. Continue Reading →

Sibanye-Stillwater has plan to cut debt by a third, and it is not a rights offer – by Allan Seccombe (Business Day – June 7, 2018)

Analysts pointed out that streaming was often a sign of a company in trouble

Debt-laden Sibanye-Stillwater will put in place a structure to generate cash within the next eight weeks, to address investors’ concern about its debt and a potential rights issue that has halved the company’s share price so far this year.

Sibanye’s net debt stands at about R23bn and analysts have flagged concern about the ratio of net debt to adjusted earnings before interest, tax, depreciation and amortisation (ebitda), which was 2.4 times at the end of March.

That is below the covenant requirement of less than 3.5 times for the remainder of this year and 2.5 times thereafter. Continue Reading →

US, Japanese platinum jewellery demand to continue growing – by Marleny Arnoldi ( – June 6, 2018)

With China’s strong economic growth in the first quarter of this year, jewellery demand in that country also increased, but platinum jewellery demand lagged behind other jewellery segments owing to a lack in innovative product and market-wide marketing support, says Platinum Guild International (PGI).

PGI, on Wednesday, released its quarterly ‘Platinum Jewellery Business Review’ saying that the outlook for Chinese consumption this year and over the coming years remains positive, driven by a growing middle class and rising income.

This has led to a change in consumer preferences along with increasing urbanisation, wider Internet penetration and retail competition, which will benefit consumption of high-end goods. Continue Reading →

Zimbabwe: Mining Speculators Invade Great Dyke – by Owen Gagare and Blessed Mhlanga (All Africa – May 24, 2018)

The politically well-connected Cypriot Pouroulis family — which is close to President Emmerson Mnangagwa — and is associated with speculation in mining has hit the jackpot in Zimbabwe.

After clinching a dodgy US$4,2 billion platinum investment deal with government in March through its company Karo Resources Limited, it has now acquired three vast special grants to mine chrome and other natural resources along the mineral-rich Great Dyke.

The latest deal was sealed last week. This effectively gives them control of vast swathes of some of the most lucrative mineral concessions in Zimbabwe. The Great Dyke hosts huge ore deposits, including gold, silver, chrome, platinum, nickel and asbestos. Continue Reading →

Underground turnaround: How North American Palladium came back from the brink – by Graham Chandler (CIM Magazine – May 2018)

For most of 2015, things were not looking good for North American Palladium (NAP). On April 16 its stock price cratered so low the New York Stock Exchange suspended trading of the company’s shares. In August the company went through a financial restructuring that saw Brookfield Asset Management become a 92 per cent owner and by September NAP had to axe its workforce by 13 per cent, to 422 employees.

Fast forward to 2018. The company’s Lac des Iles mine, 90 kilometres northwest of Thunder Bay, Ontario, now has 613 employees – a 45 per cent increase over 2015. Those workers have steered a generational turnaround for NAP that has set successive underground production records and returned the company to profitability.

Lac des Iles first began operation as an open pit mine in 1993, producing just over 3,000 tonnes per day of ore from the Roby zone. With the commissioning of a new mill late in 2002, the production rate increased to 15,000 tonnes per day. Continue Reading →

Zimbabwe mines need $11 billion investment to modernize – by MacDonald Dzirutwe (Reuters U.S. – May 18, 2018)

VICTORIA FALLS, Zimbabwe (Reuters) – Zimbabwe needs up to $11 billion to modernize its mines and boost production to maximum capacity over the next five years, the head of the country’s Chamber of Mines said on Friday.

Foreign investor interest in the southern African nation is growing after the fall of longtime leader Robert Mugabe following a de facto military coup last November but projects are still constrained by lack of funding.

Batirai Manhando, Chamber of Mines president, said with the exception of platinum producers, all other mines, including those of gold, nickel, cobalt and coal were operating below their installed capacity. Continue Reading →

Young, bridal jewellery consumers to drive platinum demand – by Nadine James ( – May 18, 2018)

JOHANNESBURG ( – Young, bridal and self-purchasing jewellery consumers are emerging to contribute to platinum demand growth this year, the Platinum Guild International (PGI) reports.

In its ‘2017 Platinum Jewellery Business Review’, the PGI found strong consumer retail sales growth in the US, Japan and India for 2017 and noted that platinum jewellery had even outperformed gold in some areas.

“We saw above-market growth for platinum jewellery in three out of four key markets in 2017. This trend is tied to a robust global economy and historically low platinum prices, which, together with an increasing preference for platinum among younger consumers, indicates growth potential in the platinum jewellery sector in 2018,” PGI CEO Huw Daniel commented. Continue Reading →