Platinum production from Zimbabwe to drop 10%

Platinum production from Zimbabwe to drop 10%
Published: 16 May 2017 (491 Views)
Platinum production from Zimbabwe is estimated to drop 10 percent this year to 440 000 ounces as output normalises at the country's largest operation, according to the World Platinum Council (WPC).

In its first quarter report for 2017, the WPC said North American supply increased three percent to 405 koz in response to greater yield from the primary platinum group metals mines but this will be partly offset by depletion in the Sudbury region.

Following a period of restructuring in 2016, WPC said output from Russia may grow three percent this year to 735 koz. "Production from Zimbabwe is estimated to drop by 10 percent to 440 koz as output normalises at the largest operation.

"There are unlikely to be significant sales from stock in 2017 as producers have now restored their stocks to their planned steady state levels, which are at least 50 koz lower than in 2015 and 2016," said the World platinum body.

WPC said a net reduction of 10 koz is forecast for the year while total mining supply is estimated at 5,970 koz for 2017, which is a reduction of 1,5 percent compared to 2016.

Total platinum supply was 1,750 koz in the first quarter, a decline of four percent year-on-year, as a drop in primary supply (-90 koz) more than offset an increase in secondary supply (+25 koz). Global demand was one percent lower compared to first quarter of 2016 at 2,050 koz as weaker investment demand (-75 koz) outweighed gains in the automotive (+20 koz), jewellery (+20 koz) and industrial sectors (+10 koz).

With global supply contracting more than demand year-on-year, the market balance expanded to a deficit of 300 koz in first quarter of 2017. Refined production recovered to 1,390 koz in Q1'17 (+10 percent year-on-year) with processing capacity in full working order following outages in the first, third and fourth quarters of 2016. South African supply totalled 960 koz in the first quarter, an increase of 19 percent year-on-year, while supply from Zimbabwe decreased 19 percent year-on-year, reflecting a return to typical mine production levels.

Total mining supply is estimated at 1,330 koz in the first quarter following a rise in producer inventory, a fall of six percent compared to first quarter 2016 and a reduction of six percent on fourth quarter 2016.

Total platinum supply is projected to decline two percent year-on-year to 7,730 koz in 2017 as both primary and secondary supply are expected to decrease.

Refined production is forecast to fall one percent to 5,960 koz as slight increases in Russia (+20 koz) and North America (+10 koz) are outweighed by reductions in South Africa (-45 koz) and Zimbabwe (-50 koz).

Secondary supply is estimated to six percent to 1,760 koz. Jewellery recycling is projected to decline by 20 percent (-125 koz) to 500 koz this year as it returns to a more normal level in China after excess retail stock was returned to manufacturers last year, while autocatalysts recycling is expected to increase two percent (+20 koz) to 1,255 koz on improving volumes.

Global demand is forecast to drop six percent year-on-year to 7,795 koz, primarily owing to declines in industrial and investment demand. Global refined supply is forecast to fall one percent to 5,960 koz in 2017. South African output is estimated to decrease by one percent to 4,200 koz.

"This dip is attributable to restructuring (lower production targets) at some Western Limb operations, and lower yield from some Eastern Limb mines due to community disruption and depletion of reserves. Ramp-up of new shafts is projected to contribute around 120 koz this year," said WPC.

- the herald

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

WATCH: Mnangagwa dossier on Jonathan Moyo?

by youtube | 22 October 2017 | 67 Views

Zanu-PF youths declare undying support for Grace Mugabe

by Staff reporter | 22 October 2017 | 59 Views

Cash levels decline in Zimbabwe bank vaults

by Staff reporter | 22 October 2017 | 55 Views

Whites only job advert causes a stir

by Staff reporter | 22 October 2017 | 61 Views

WHO forced by UK to reverse Mugabe decision

by Staff reporter | 22 October 2017 | 60 Views

WATCH: Cops kick Dabengwa's candles

by Staff reporter | 22 October 2017 | 54 Views

Dabengwa's visit to Bhalagwe

by Mkhululi Zulu | 22 October 2017 | 54 Views

Twitter reacts after WHO revokes appointment of Mugabe

by Staff reporter | 22 October 2017 | 40 Views

George Weah attends TB Joshua's church service

by Ihechukwu Njoku | 22 October 2017 | 56 Views

Zimbabwe's White, Indian communities welcome engagement with Mphoko

by Staff reporter | 22 October 2017 | 44 Views

'WHO's the biggest loser after Mugabe decision'

by Staff reporter | 22 October 2017 | 52 Views

House boat 'docks' in Hwange

by Staff reporter | 22 October 2017 | 43 Views

Murowa Primary School Headmaster brutalises pupils

by Worried Parents | 22 October 2017 | 50 Views

WATCH: Mujuru celebrates endorsement

by Staff reporter | 21 October 2017 | 248 Views

Controversial Zimbabwean gay activist pregnant?

by Staff reporter | 21 October 2017 | 273 Views

Old women good in bed as man chops own fingers in rage

by Staff reporter | 21 October 2017 | 264 Views

Pastor Sanyangore went with 'miracles'

by Staff reporter | 21 October 2017 | 186 Views

Zanu-PF finding difficult to handle Jah Prayzah

by Staff reporter | 21 October 2017 | 213 Views

Ambassador Mugabe back from WHO conference

by Staff reporter | 21 October 2017 | 105 Views

War vets ready to defend Mugabe

by Staff reporter | 21 October 2017 | 110 Views

US officials forced to pull down American flag in Zimbabwe

by Staff reporter | 21 October 2017 | 113 Views

Biti sticks the boot into Mugabe-led govt

by Staff reporter | 21 October 2017 | 123 Views

Mugabe's WHO appointment: Britain breathes fire

by BBC | 21 October 2017 | 177 Views

Hubby axe wife to death over $1 airtime

by Staff reporter | 21 October 2017 | 101 Views

Drunk policeman fined

by Staff reporter | 21 October 2017 | 90 Views

Man assaults wife over daughters' love affairs

by Staff reporter | 21 October 2017 | 105 Views

Vendor fined for assaulting a cop

by Staff Reporter | 21 October 2017 | 84 Views

WATCH: South Africans speak better English than Zimbabweans?

by Staff Reporter | 21 October 2017 | 118 Views

MPs demand $15m unpaid allowances

by Staff Reporter | 21 October 2017 | 78 Views

Dokora appoints new Zimsec board made up of academics, technocrats

by Staff Reporter | 21 October 2017 | 127 Views

BREAKING: Riot police block Gukurahundi prayer meeting

by Stephen Jakes | 21 October 2017 | 132 Views

MDC-T must tackle Tsvangirai succession head-on

by Staff reporter | 21 October 2017 | 107 Views

Unicef conducts dialogue for persons living with Disability

by Stephen Jakes | 20 October 2017 | 119 Views

Zanu PF intimidating Harare west residents during BVR - Majome

by Stephen Jakes | 20 October 2017 | 260 Views

Formalise art in education curricular: Artists

by Chigumbu Warikandwa | 20 October 2017 | 128 Views

Unisef conducts dialogue for persons living with Disability

by Stephen Jakes | 20 October 2017 | 122 Views