Increasing pressure on Russian palladium supplies and predicted depleting stockpiles will have a positive effect on pricing, says Platinum Australia COO Kim Freeman.

And an increase in Chinese auto sales and a recovery in the diesel engine market in North America and Europe would increase 
demand, leading to a possible palladium supply deficit in the next five years, he told 
delegates attending this year’s African Mining Congress, held in Johannesburg, last week.

Turning to platinum, he said: “Looking at metal prices over the last ten years, we are on the rebound and have to take advantage, as prices in the industry are cyclical.”

Freeman added that Platinum Australia would be able to increase platinum supply to the market from its three projects, all based in South Africa.

The company’s Smokey Hills mine, which is situated close to the Modikwa platinum project, boasts a one-million-ounce resource and started production two years ago. “This shallow underground mine will be able to produce 95 000 oz/y,” he said.

Freeman said that the company’s 49%-owned Kalahari Platinum, or Kalplats project, situated in the North West province, was currently in the definitive feasibility study stage.

The openpit configuration was expected to 
produce between 100 000 oz/y and 130 000 oz/y. 
“We also have a significant regional presence.”

The project, which is located about 300 km from Johannesburg, is situated in the Kraaipan greenstone belt Stella-layered complex and is significantly different from many platinum deposits in the Bushveld Complex.

Freeman said that the company’s newest prospect was the Rooderand shallow platinum 
resource, north of Pilanesberg.

“We are currently 
drilling in this area and starting a prefeasibility study in the near future. This mine has the potential of three-million ounces of platinum, but the study might show increased resources.”