Miners move to satisfy rush for palladium
By Gillian O'Connor, Mining Correspondent - 17 Mar 2000
Financial Times
news.ft.com
Sky-high prices and a fundamental shortage of palladium, most of which comes from Russia, is stoking a worldwide "palladium rush" as western miners scramble to increase their production of platinum group metals.
A new report suggests that the expansion of existing mines and development of new ones could increase the western miners' palladium output by up to 50 per cent.
Last year less than a third of global supply of palladium, used in autocatalysts and other industrial applications, came from outside Russia. This was partly because mines in South Africa, the major producer of platinum, used in jewellery as well as industrial applications, traditionally produce less palladium than platinum.
It is also partly because Russia, whose mines produce more palladium than platinum, has been selling additional metal from its stockpile to plug the global supply deficit.
Western mining companies produced an estimated 2.67m ounces of palladium last year, against around 5m from Russia. Planned expansion at nine existing mines should increase production by around 451,000 ounces, according to Metals Economics Group*.
Another nine new mines could add up to 874,000 ounces more in the next few years. Thirty exploration companies, including 10 majors, are targeting platinum group metals, with another 72 companies considering other participatory arrangements.
Of the existing mines, the largest single capacity increase is scheduled to come from North American Palladium's Lac des Isles mine in Canada, which should expand its palladium capacity by 170,000 ounces.
Three Amplats developments in South Africa (Rustenburg, Potgietersrust and Lebowa) should increase capacity by an aggregate 141,000 ounces more, with Northam, in which Amplats has a growing stake, adding a further 29,000 ounces.
Capacity at Lonrho Platinum, also in South Africa, should increase by 70,000 ounces.
The largest of the new mines should be Stillwater's East Boulder in the US, with an estimated palladium production capacity of 356,000 ounces.
But Amplats three projects at Bafokeng-Rasimone and Maandagshoek in South Africa and Unki in Zimbabwe total 225,000 ounces. And Implats has interests in four projects at Winnaarshoek, Messina, Marikana and Crocodile River with a total capacity of 213,000 ounces.
The majority of the 96 platinum group metal exploration projects logged by MEG are in North America, 57 per cent in Canada and 15 per cent in the US. Other areas include Australia, New Zealand and New Caledonia (13 per cent), Southern Africa (7 per cent), Brazil and Bolivia (3 per cent) and Russia, the UK and the Yemen (5 per cent).
Only six of the 96 have reported resource estimates. These total 22.2m ounces, with palladium grades ranging from 0.4 per cent to 2.4 per cent. *Strategic Report from Metals Economics Group, PO Box 2206, Halifax, Nova Scotia, Canada B3J 3C4. |
