Royal Bafokeng Platinum is planning a R10bn ($1.4bn) expansion of the Styldrift II project in South Africa to increase its platinum production.

The expansion follows the rise in demand for platinum, which is used in jewellery and to curb pollution from cars, reports Bloomberg.

Royal Bafokeng Platinum CEO Steve Phiri told investors that the platinum demand is likely to exceed supply in the next three years, while a shortage of palladium, which is mined along with platinum, may rise to 1Moz in 2014.

The firm is currently developing the Styldrift I project with an investment of R11.6bn ($1.6bn) in north-west Johannesburg.