Despite the sharp decline in platinum prices since September 2008, the demand for platinum is rising in a range of industrial applications, meaning that global demand will continue to outstrip supply.
New analysis from Frost & Sullivan (industrialautomation.frost.com), A Strategic Review of South Africa's Platinum Group Metals Mining Industry, finds that the country's platinum production declined sharply from the 5,22 million ounces produced in 2007 to 4,53 million ounces in 2008. Output is however expected to climb to an estimated 5,70 million ounces in 2014.
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be sent to you by email.
"The country's platinum production will face more declines in the short term due to operational, resource and other constraints," says Frost & Sullivan Research Analyst Wonder Nyanjowa. "However, the industry is set to experience exceptional growth once the global economy recovers."
Despite the limited upside potential for platinum prices in the short to medium term, South Africa's platinum mining industry is poised to enjoy phenomenal growth once the effects of the global economic slow down start lifting.
"South Africa's platinum mining companies need to position themselves to be able to respond swiftly to changes in the global economy," advises Nyanjowa. "Although the immediate concern for most executives is securing the future of their companies, it is also important that platinum mining companies are able to respond swiftly to an upturn."
Frost & Sullivan believes that small and medium-sized platinum mining companies will contribute significantly to South Africa's platinum production output over the next five years. They will achieve this by entering into strategic alliances with major companies to exploit the resources in their ownership.
One of the most significant challenges facing South Africa's platinum mining companies is to contribute to government's efforts towards ensuring sustainable development amongst communities that are affected by mining activities.
"Platinum mining companies in South Africa are facing the need to balance production and cost control targets with managing sophisticated relationships involving the environment, safety, community and stakeholder involvement," explains Nyanjowa.
A Strategic Review of South Africa's Platinum Group Metals Mining Industry is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets: South Africa's Gold Mining Industry, South Africa's Coal Mining Industry and, Diamond Mining Industry in Central and Southern Africa. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.
A Strategic Review of South Africa's Platinum Group Metals Mining Industry / M378