Listed Mining Companies
By: Matthew Hill
11th February 2008
TEXT SIZE
The price of platinum, used in diesel autocatalysts, surmounted the $1 900/oz level, in the afternoon.
"We would expect that as soon as people realise how much production there is, the price might soften a bit," Mbazima told Mining Weekly Online, in an interview following a presentation of the group's results for 2007.
The price of the metal added about one quarter this year to the level it ended last year at, after power shortages slashed production in South Africa's mines, which produced about two-thirds of the world's supply.
Producers had been expressing fears amidst the rallying platinum price that users might find alternative technologies to cut their consumption of the metal.
While the jewellery market had historically shown to be more price influenced, the automotive sector, where platinum is used to cut diesel vehicle emissions, had not responded too significantly.
But, Mbazima said that this was something Angloplat had "always been concerned about".
"It becomes even more concerning when supply becomes constrained," he stated.
"However, this thing [switching to alternatives] cannot be done overnight," Mbazima said, saying that it took time to find ways to reduce platinum consumption in vehicles.
In fact, demand was set to grow, as tighter European vehicle emissions legislation took effect.
Angloplat reported on Monday that its production would likely be 3% lower in 2008 than the previous year, at 2,4-million ounces of the white metal, because of the South African power predicament.
Other major producers, including London-based Lonmin and midtier miner Aquarius Platinum had also failed to meet production forecasts.
The second-biggest global producer, Impala Platinum, was scheduled to announce its results for 2007 on Thursday.
Edited by: Mariaan Webb
To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.
