adminmetal, says mining consultancy firm Johnson Matthey.
Last year, Zimbabwe exported 230 000 tonnes of platinum. Global demand for the commodity, which has swelled to 7 88 million ounces this year, largely fuelled by the rapidly recovering global automobile sector.
In 2009, demand for the mineral plunged, as effects of the financial global recession took hold on leading automobile industries who either closed shop or cut back on operations.
This saw the international market in excess of about 700 000 ounces of the metal.
But now, China’s economy, which is growing in leaps and bounds, has this year helped sustain a platinum deficit estimated at 500 000 ounces.
According to Johnson Matthey in its May research titled “2011 Platinum Report,” Zimbabwe’s sales of the metal will surge, though supplies from leading producer, Russia will slide.
The research think tank said demand would, however, hold sway triggering prices to jump to US$2 000 per ounce, before year-end.
“(Platinum) supplies from Zimbabwe will grow by almost 25 percent to 280 000 ounces following a ramp up of expansion projects in the country.
“Supplies of palladium are expected to decline in 2011, with lower sales from Russian state stocks more than offsetting an increase in output elsewhere.
“Demand in the automotive and industrial sectors is expected to continue to grow this year, the palladium market is likely to be in deficit again,” said Johnson Matthey.
Zimbabwe’s rising platinum output has largely been driven by the emergence of new miners namely Humboi and Unki as well as the ambitious Zimplats project which is expected to produce two million tonnes of platinum ore annually, in the short term. Zimbabwe is the world’s third largest producer of the white metal, after South Africa and Russia.
Last year, global demand for platinum by the automobile sector stood at 2 985 million ounces, largely fuelled by China’s rising needs.
Platinum and its sister metal palladium are mostly used in motor vehicle catalytic converters and jewellery manufacturing. – New Ziana.
Online Reporter