SA’s platinum output at risk
Report forecasts larger global surplus but local miners face shaft closures as they remain cash negative
As the global platinum market moves into a large forecast surplus in 2018, metal output from SA, the world’s single largest source, is under growing risk of mine closures, according to Johnson Matthey’s latest report. Released during London’s Platinum Week, the report showed the market surplus tripling to 316,000oz during 2018 as primary mined supply stayed flat and record demand from industrial consumers in 2017 continued to grow. Of major importance to the market is the outlook for SA, which is the dominant player with production of more than 4-million ounces of platinum a year out of total mined supply of 6-million ounces. The outlook is less than rosy, the report noted. "Although we believe that the short-term production outlook for the South African PGM [platinum group metal] industry is broadly flat, there are increasing risks to output going forward," Johnson Matthey said. 70% The contribution of SA to the global mine supply "The rand-denominated value of a typical basket of ...
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