Zimbabwean production of the mineral, says global metal refiner Johnson Matthey.
In its latest global platinum report, the metals firm said Zimbabwe’ platinum production is expected to increase again this year notwithstanding investor uncertainty regarding the impact of the indigenisation drive in the mining sector. Last year Zimbabwe increased output by almost a quarter last year to 280 000 ounces as the major producers carried out considerable expansion projects.
Another metals consultancy firm GFMS in its “Platinum and Palladium Report 2010” said Zimbabwe was last year the fifth biggest miner of platinum and platinum group metals (PGMs) after South Africa, Russia, the United States and Canada.
During the period the country increased supply of the mineral to the international market by 26 percent to 222 000 ounces, noted the London-based researcher.
Johnson Matthey said they expect the price of platinum to firm beyond the US$1 762 per ounce average achieved over the six months to April this year on the back of strong demand from industrial and automotive users.
“With positive supply-demand fundamentals and continuing global economic growth, platinum could trade as high as US$2 000 in the period. Strong physical buying in China is likely to give support during price dips; meaning platinum is unlikely to fall below US$1 750,” reads the report.
The firm forecast Zimbabwe’s platinum output to increase this year in view of the expansion projects that have and are being undertaken by the country’s major producers. The major expansion projects include the one being carried out by Zimbabwe Platinum Holdings, the country’s leading platinum miner which is 87 percent-owned by South Africa-based Impala Platinum, which is a US$450 million project which will see output rise to 270 000 ounces by 2014.
Elsewhere, output at the Zvishavane-based Mimosa platinum mine increased to 101 000 ounces from 91 500 ounces the previous year. The coming on board of Anglo Platinum’s 70 000-ounce Unki Project will also boost the country’s platinum output this year.
“We expect production to increase this year,” said the Johnson Matthey report, noting, however, that there was “significant uncertainty about the eventual impact of measures to increase indigenous investment in the Zimbabwean mining industry”. All foreign companies are now required by law to localise at least 51 percent of their shareholding.
Zimbabwe has the second largest known platinum reserves in the world after neighbouring South Africa.
The Johnson Matthey report is viewed as the most authoritative commentary on the global platinum group metals market.

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