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platinum projections.
Johnson Matthey is a renowned metals refiner that closely monitors prices and output trends on the global metals market.
Zimbabwe is home to the second-largest known reserves of platinum, after South Africa.
The country’s platinum output last year rose 21 percent to 340 000 ounces driven by new entrant — Anglo American Platinum’s Unki Mine, said the Johnson Matthey report.
At the same time, Anglo American Platinum, the world’s largest platinum producer, has indicated it expects to
produce between 2,5 and 2,6 million ounces of platinum this year, a ramp-up in Unki’s output.
JM said Zimbabwe’s platinum sector managed to skirt challenges in respect of lack of new investment and negative global perception to record the volume growth.
“A ramping up of mined output in North America, following shutdowns in 2010, and new and expanding operations in Zimbabwe coming on-stream, together contributed significant additional ounces,” read part of the report.
The platinum report noted that there was little prospect for a rise in South African platinum supplies this year and shipments of the precious metal from the world’s top producer would most likely decline.
Supplies of platinum from South Africa increased by 5 percent in 2011 to 4,86 million ounces because of inventory releases, the metals refiner said in an annual report.
“The potential for an increase in platinum supplies (from South Africa) in 2012 is weak . . . We conclude that overall, shipments of platinum are likely to decline this year,” Johnson Matthey said.
An estimated 80 percent of the world’s known platinum group metal reserves lie in South Africa, where the industry has been hit by labour unrest and a government safety drive. For instance, Impala Platinum (Implats), the world’s second largest producer of the precious metal, lost 120 000 ounces in first-quarter production due to an illegal and often violent six-week strike at its Rustenburg operation.
Meanwhile, another JM metals report shows that platinum prices lost ground during the course of last month, trading below US$1 600 for much of the month, the lowest since late January.
Platinum was fixed at a month high of US$1 658 on April 3, before trending downwards for much of the remainder of the month.
With indications from the United States Federal Reserve that there would be no further quantitative easing, platinum plunged, along with gold, falling below US$1 600 for the first time since late January to fix at US$1 596 on April 11.
Platinum also suffered from investors turning against risk assets as fresh concerns emerged about the financial stability of the eurozone.
Online Reporter