Demand for platinum, by application.
So where does this leave fuel cells? Where will the extra platinum come from? Happily, after a decade in which few mine expansions came to fruition, higher prices and expectations of demand growth have created a climate favourable for new platinum projects. As a result, the next few years should see a rapid expansion in production.
Platinum supplies by region.
South Africa currently dominates world platinum supplies: its mines shipped 4.1 million oz of platinum in 2001, accounting for 70 per cent of world supplies, and its share is set to increase in future. The reason for this is the Bushveld Complex, an enormous geological feature about 370 kilometres across which contains the worlds largest resource of platinum group metals. Whereas most other deposits have a large preponderance of palladium, the Bushveld Complexs pgm-bearing layers (known as the Merensky Reef, the UG2 and the Platreef) are rich in platinum. They also contain relatively high grades of pgm typically 4-8 grams per tonne.
Despite the extraction of around 80 million oz of platinum since the 1920s, enormous reserves still remain indeed huge areas of the Bushveld Complex are as yet totally unexploited. High pgm prices, combined with improvements in mining and processing techniques, have encouraged significant new investment in the industry. The most ambitious plans are those announced by Anglo Platinum in May 2000: the group intends to raise platinum capacity from around 2 million oz to 3.5 million oz by 2006. Other existing producers also have significant expansions underway, while high prices have attracted new entrants to the industry. If all currently planned projects are brought successfully into production, annual platinum supplies from South Africa will expand by at least 2 million oz by 2010.
The South African Bushveld Complex.
Of the other major world deposits, only Zimbabwes Great Dyke is similarly platinum-dominant, although the pgm content of the ore is lower (typically less than 4 grams per tonne). This country has long been seen as a potential source of significant quantities of platinum, but has never fulfilled its promise: over the years a series of trial mines and one large project have closed due to a combination of geological and economic problems. However, the tide finally appears to be turning, with two projects due to see the light of day in 2002.
In other countries, platinum is essentially mined as a by-product of nickel and palladium mining at Norilsk in Russia, of base metals in Canada, and of palladium at the Stillwater mine in the USA. In these locations, the ore typically contains about 3 ounces of palladium for every ounce of platinum. Russian exports of platinum are likely to decline in future although Norilsk Nickel plans to increase its pgm output, government stocks of platinum have been depleted and will no longer be a significant source of supply. In North America, substantial expansions of palladium production are underway but these projects will add only relatively modest amounts of platinum.
NEW PLATINUM PROJECTS IN SOUTH AFRICA
In May 2000, Anglo Platinum announced that it planned to expand its annual platinum output from around 2 million oz in 1999 to 3.5 million oz by 2006. To date, expansions totalling around 1.1 million oz have been announced.
Three projects which commenced in 1998-99 are now at or approaching full production. A major new operation, the Bafokeng Rasimone Platinum Mine (BRPM), came on stream in late 1999 and at full capacity, slated for 2002, will produce around 250,000 oz of platinum annually. Two smaller expansions, at the existing Lebowa and Amandelbult sections, reached full production in 2001, together contributing approximately 100,000 oz of platinum each year.
A second greenfield project, at Maandagshoek on the Eastern Limb of the Bushveld Complex, was announced in 1999. It is expected to reach full capacity of around 160,000 oz per annum in 2004.
During 2000 and 2001, Anglo Platinum revealed further details of its expansion programme. Major new mines are to be constructed at Waterval, adjacent to the existing Rustenburg Section, and at Twickenham on the Eastern Bushveld. In addition, production capacity at BRPM will be doubled via the extension of mining onto the neighbouring farm of Styldrift. The company has also announced the Pandora joint venture with Lonmin, which will exploit reserves of platinum-bearing ore adjacent to the latters Eastern Platinum mine.
www.angloplatinum.com
Middelpunt Hill Expansion at Lebowa Platinum.
While Impala has little opportunity to expand output at its existing mines in the Rustenburg area, it is involved in a number of new projects elsewhere on the Bushveld Complex. Its 83 per cent-owned subsidiary Barplats is proceeding with the redevelopment of the Crocodile River mine (which was mothballed due to low pgm prices in 1991), and is also re-evaluating the partly-completed Kennedys Vale mine on the Eastern limb of the Bushveld Complex. Also on the Eastern limb, Impala intends to develop the Marula Platinum mine (formerly known as the Winnaarshoek prooject) with a capacity of close to 200,000 oz of platinum per annum.
In May 2001 it was announced that Impala Platinum and Anglovaal Mining (Avmin) had acquired the right to mine pgm on the farm Dwars Rivier, on the Eastern Bushveld near the town of Lydenburg. The partners have formed the Two Rivers joint venture to develop and operate a new underground mine, with Anglovaal as the majority shareholder (55 per cent) and project operator. A feasibility study is underway, based on a mine producing 160-170,000 oz of pgm per annum.
Impala also refines and markets pgm from a number of smaller producers, including Kroondal, Messina, Ngezi and Mimosa, and has a substantial secondary refining business.
www.implants.co.za
www.avmin.co.za
Lonmin Platinum
In November 2001, Lonmin announced a major acceleration of its expansion programme. The company now intends to reach its target production level of 870,000 oz of platinum per annum during 2003, rather than in 2008 as previously planned. Lonmin will also benefit from production at the Pandora jv with Anglo Platinum, in which it has a 50 per cent stake.
Northam Platinum
At Northam, a new concentrator stream to process UG2 ore came into production in February 2001, lifting capacity to around 230-240,000 oz of platinum per annum (previously around 190,000 oz). Output was reduced in 2001 due to a strike, but should increase during 2002.
A relative newcomer in the world of platinum mining, Aquarius Platinum controls 95 per cent of Kroondal Platinum, which entered production in late 1999. During 2001, Kroondals capacity was expanded by 50 per cent to around 150,000 oz of platinum per annum.
Open-cast mining at Marikana, Aquarius second platinum project, is scheduled to start in mid 2002, to provide a stockpile of ore ready for concentrator commissioning towards the year end. A third project, at Everest on the Eastern Bushveld, is currently the subject of a detailed feasibility study which will include the sinking of a trial shaft. The results of this study are due in 2002.
www.kpm.co.za
www.aquariusplatinum.com
Shallow UG2 ore is mined from this decline shaft at Kroondal Platinum.
Messina
The Canadian company SouthernEra is redeveloping the Messina mine, which was partly completed before being mothballed in 1991. Under SouthernEras original plan, Messina was scheduled to produce around 160,000 oz of platinum group metals per annum from 2003, but in response to the high pgm prices of late 2000/ early 2001, the company brought forward the start-up of the project. A small concentrator began to process ore in June 2001 and production will be of the order of 30,000 oz of combined pgm and gold annually until the start of full-scale operations towards the end of 2002.
Until recently, the small Mimosa mine, owned by Zimasco, was Zimbabwes only primary pgm producer, with output estimated at around 15,000 oz of platinum per annum. In July 2001, it was reported that Impala Platinum had taken a 35 per cent stake in the mine for $30 million, providing the capital necessary to expand platinum production to 70,000 oz per annum.
When BHP pulled out of the Hartley Platinum Project in 1999, Zimplats became the owner of the mothballed Hartley mine and several other platinum prospects on the Great Dyke. In March 2001, the company announced that it had obtained financing for the development of an open-cast mine at Ngezi, with Impala Platinum paying $30 million to acquire a 30 per cent stake in Zimplats subsidiary Makwiro Platinum Mines (which owns the Ngezi project and the former Hartley Platinum mining and processing complex). In addition, Impala and the South African bank ABSA each purchased a 15 per cent equity interest in Zimplats itself. Production from Ngezi started in early 2002, and at full capacity the mines annual output is scheduled to be 208,000 oz of pgm. Zimplats is now considering an expansion of pgm output, through an extension of open cast operations and, possibly, a limited reopening of underground operations at Hartley.
In 1998, Anglo American Zimbabwe announced plans to undertake a platinum project at Unki, near Shurugwi, central Zimbabwe. The intention was to develop a mine producing 120,000 oz of platinum group metals per annum. However, progress has been stalled by political and economic problems.
www.angloamerican.co.uk
The Great Dyke: Zimbabwe.
Platinum supplies from Russia come from three main sources: Norilsk Nickel, which produces platinum as a by-product of nickel mining in northern Siberia; alluvial platinum producers, mainly in the Far East of Russia; and Russias State Fund (Gokhran). Exports of platinum from these three sources are all made through the state pgm marketing agency Almazjuvelirexport (Almaz).
Norilsk Nickels pgm production is a state secret. However, palladium output is known to be substantial currently close to 3 million oz per annum. Platinum production is comparatively modest, as the ore typically contains over 4 times as much palladium as platinum. Output of pgm may increase slightly over the next few years, as the company shifts the emphasis of mining towards ore types with a higher pgm content, and upgrades its plants to permit the processing of old tailings with a significant pgm content.
The alluvial operations in the Far East have become significant platinum producers in the last few years, with output peaking at around 300,000 oz in 1999, although since then, production has fallen somewhat, partly because of cash-flow problems (until this year, the alluvial producers did not have quotas permitting them to export their output) and partly to extend the lifespan of the mining operations. There is also a very small amount of alluvial production from the Urals region, but the deposits here were generally exhausted during the early 1900s.
During the mid 1990s a large proportion of Russias platinum exports came from government stocks controlled by Gokhran. However, the remaining stock of platinum is thought to be small.
More information on Russian exports of pgm can be found in Johnson Mattheys Platinum Reviews.
In North America, pgm have traditionally been produced as by-products of nickel and copper mining by Inco and Falconbridge. At present, platinum production from this source is typically about 170-200,000 oz of annually. High pgm prices may lead to a modest increase in pgm output, with Inco having recently announced the discovery of several deposits with relatively high pgm grades.
Another source of by-product pgm is Falconbridges Raglan nickel mine on the Ungava peninsula in the far north of Quebec. However, the ore contains more palladium than platinum, with only small amounts of the latter being produced.
www.incoltd.com
www.falconbridge.com
Canadas only primary pgm producer is the Lac des Isles operation now owned by North American Palladium. The mine completed an expansion in mid 2001, and palladium output is planned to be around 250,000 oz per annum. However, platinum output will remain small, since the ore contains only around one ounce of platinum for every ten ounces of palladium.
Stillwater Mining Companys Nye mine in Montana, USA produced about 120,000 oz of platinum in 2001. The company is expanding operations at Nye and building a new mine at East Boulder, but it has scaled back its plans due to weaker palladium prices. Platinum output should reach around 150-170,000 oz per annum by the middle of this decade.
www.stillwatermining.com
North American Platinum Group Metal Mining Sites.
More information about Platinum Reserves can be found in another article recently published on Fuel Cell Today, written by Grant Cawthorn, concerning the Platinum and Palladium Resources of the Bushveld Complex