After a contraction of 2.1% in 2016, global platinum mine (or metal content in the ore) production recovered marginally by 0.8% to reach 6.1 million ounces in 2017, assisted by South Africa and the US increasing output by 1.5% and 2.6% respectively. However, the forecast for 2018 is for another decline, before production picks up again through to 2022.
South Africa, which is the world’s largest producer of platinum, managed to offset production losses in 2017 from the closure of mines such as Platinum Group Metals Ltd’s Maseve mine and Atlatsa Resources’ Bokoni mine, with a strong performance from Anglo’s large Mogalakwena open pit mine. Furthermore, two of the country’s largest platinum mines, Sibanye-Stillwater’s Rustenburg platinum mines and Impala Platinum’s Rustenburg lease, achieved record production.
Similarly, US production of platinum also increased in 2017, due to a 3.87% production increase from Sibanye-Stillwater, with output rising to 376 thousand ounces.
Production in 2018 is forecast to decline, dropping by 0.9% as a fall in the price of platinum and appreciation of the Rand against the US Dollar leads to mine closures, coupled with high over the ground inventories. However, looking ahead, an expected recovery in platinum prices driven by positive global vehicle sales and Asian Jewellery demand will lead to increased production.
Over the forecast period (2018–2022), global platinum mine production is projected to grow at a CAGR of 2.4%, to reach 6.7 million ounces in 2022. This growth will be supported by the start of operations at projects across South Africa, Zimbabwe, the US and Canada, including the Platreef, Garatau, and Styldrift 1 mines in South Africa, which have annual capacities of 214, 220 and 330 thousand ounces respectively.
Global platinum production 2005 – 2022 (thousand ounces)
Source: GlobalData, Mining Intelligence Center © GlobalData