The impact of increasing platinum supplies on the industry in South Africa
Date
1992
Authors
Odendaal, Nicolaas Johannes
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Abstract
Platinum, the major metal recovered by the platinum mines in South Africa, is unusual among
metals in that its commercial applications are limited to three major sectors, namely,
autocatalysts, jewellery and investment. Hence, any degree of change in these sectors will
either result in a rapid flooding of the market and a drop in the price, making it uneconomic
for mines to continue to operate or, on the other hand, create a shortage.
The purpose of the study is to determine the future changes in the fundamentals, the effect
thereof on the price of commodities produced by the platinum mining companies, and the
consequent changes in the South African platinum industry.
The study was done mainly through literature research and empirical data. The latter were
used to find correlations between prices, and supply and demand, in order to determine the
plice up to the year 2000. These price forecasts were used in calculating the revenue for each
mine at a specific production rate.
Final evaluation of the mines was done by applying various techniques to determine the status
of the mines.
It is concluded that future entry will be more difficult due to a moderate increase in the price
of PGM. However, after the closure of certain new mines and prospects in South Africa, high
cost producers who are able to implement effective cost saving measures to survive the
recession periods, will be ensured of a flourishing future.
Description
A dissertation submitted to the Faculty of Engineering, University of the Witwatersrand,
Johannesburg, in fulfillment of the requirements for the degree of Master of Science in
Engineering
Keywords
Platinum group industry -- South Africa., Supply and demand., Platinum mines and mining -- South Africa.