LSE-listed data and analytics company GlobalData expects platinum production to increase from 2019 to 2022.
After a contraction of 2.1% in 2016, global platinum mine production recovered marginally by 0.8% in 2017 to 6.1-million ounces, which was mainly supported by South Africa and the US having increased their output by 1.5% and 2.6% respectively.
South Africa managed to offset production losses in 2017, from the closure of some mines, with a strong performance from Anglo American Platinum’s Mogalakwena openpit mine, as well as record production from Sibanye-Stillwater’s Rustenburg-based platinum mines and Impala Platinum’s Rustenburg lease.
“Similarly, US production of platinum also increased in 2017, owing to a 3.87% production increase from Sibanye-Stillwater, with output rising to 376 000 oz,” GlobalData mining analyst Sameer Chakravarthy pointed out in a statement released last week.
Production is forecast to decline this year, dropping by 0.9%, as a fall in the platinum price and the appreciation of the rand against the dollar lead to mine closures, coupled with high above-ground inventories.
However, looking ahead, GlobalData forecasts a recovery in platinum prices to prevail, with positive global vehicle sales and Asian jewellery demand driving consumption.
Chakravarthy said that global platinum mine production was projected to grow at a compound annual rate of 2.4% from 2019 to 2022 to reach 6.7-million ounces in 2022.
This growth will be supported by the start of operations at projects across South Africa, Zimbabwe, the US and Canada, including the Platreef, Garatau and Styldift 1 mines in South Africa.