CONTINUING SUPPLY SHORTAGES
Platinum council expects SA production to decline
Production will fall further in 2017 on the back of the closure of unprofitable operations and the depletion of smaller mines
South African platinum supply, the largest in the world, is continuing on a downward trajectory as its mines grow older, keeping the global market in sustained deficits. The World Platinum Investment Council released its quarterly report looking ahead to what is expected for platinum supply and demand in 2017 and a review of 2016. A feature of the report is the slide in output from SA, down 5% in 2016 to 4.24-million ounces and forecast to decline another 1% in 2017 to 4.185-million ounces. Last year, safety stoppages ordered by the Department of Mineral Resources, as well as "price-induced restructuring" at Rustenburg mines contributed to the 5% decline in output. The council was set up by six South African platinum miners in 2015 to drive investment in platinum around the world and underpin demand for the industrial and precious metal. In 2017, production will fall further on the back of the closure of unprofitable operations and the depletion of smaller mines, which will offset t...