Platinum Group Elements (Platinum - Pt, Palladium - Pd, Iridium - Ir, Osmium - Os, Rhodium - Rh and Ruthenium - Ru)

Platinum Group Elements (PGE’s) have numerous applications either in their pure form or as a variety of alloys combining different PGE’s or with other metals. PGE’s, in particular platinum itself are widely used as a decorative metal in jewellery, but its principal uses are in industrial applications. The PGE’s unique physical and chemical properties (High melting points, chemical inertness, low co efficient of thermal expansion, ability to catalyse chemical reactions and high corrosion resistance) have made these elements indispensable to a variety of industrial applications.

The main consumer of PGE’s is the automotive industry, which utilises platinum and palladium (in particular) as oxidation catalysts in catalytic converters to control and treat exhaust emissions. Jewellery represents about 40% of overall platinum use. While the amount of platinum used for catalytic converters to control exhaust emissions is around 37%, with the remaining approximately 23% being used in other industrial applications around the world. Palladium is also used in the electronic and dental industries. Rhodium is used in catalysts, alloyed with platinum. Iridium and Ruthenium are used in electrochemical, electronic and catalytic applications. Osmium is used for in medical applications such as chemotherapy.

South Africa and Russia are the world’s largest producers of PGE’s. PGE’s are generally associated with nickel - copper - iron sulphides, which are generally hosted by mafic and ultramafic rocktypes.

Platinum Mining is a capital and labour intensive industry, taking up to six months, and requiring 7 to 12 tonnes of ore to produce one troy ounce (31.135 grammes) of platinum. Companies invest heavily in exploration and production facilities.

Palladium and platinum prices were at near record highs in the first quarter of 2002, but began to diverge in the fourth quarter when palladium prices sank to near record lows. The price of platinum however, continued to climb, trading between $590 and $600 per ounce in 2003 compared with $543 in 2002. Market conditions carried the price of platinum to an 12-month high of $605 per ounce in mid-November, 2002, subsequently falling back and stabilizing at around $590 in the first half of 2003.

Total global demand of platinum in 2002 amounted to 7,110,000 oz compared to 6,760,000 oz in 2001. Total global mine production in 2003 was estimated at 187,000 kg compared to 184,000 kg in 2002 . Demand for platinum in jewellery grew by 9 percent in 2002 to 2.83 million oz, driven by the rise of sales in China. In 2002, demand by the autocatalyst industry increased by 3.6 percent to 2.61 million oz, however, the underlying use of platinum in autocatalysts increased by 17 percent.

Global demand for palladium decreased by almost 30 percent in 2002 to 4.78 million oz. This was mainly due to a decrease in palladium purchases by the auto industry by 39 percent to 3.08 million oz. Purchases of palladium for electronics increased by 6 percent to 710,000 oz. Demand for palladium used in dental alloys increased by 25,000 oz to 750,000 oz. There was an increase of 12% in demand for palladium in the jewellery sector mainlly due to increased Chinese and Japanese production. Global mine production of palladium was estimated at 171,000 kg in 2003, a decrease from 181,000 kg in 2002.

Global supply of Rhodium in 2002 was 612,000oz compared to a demand of 696,000 oz in the same period.Total demand for rhodium rose by just under three percent to 596,000 oz in 2002. Use of rhodium on autocatalysts grew strongly, driven by an increase in average rhodium loading levels, and higher light vehicle production in the United States and Asia.

2006 has seen a considerable increased demand for platinum. Among motor vehicle manufacturers demand had increased 9,5 percent.