Impact of Recycling on Materials Availability: A Case Study of Platinum

Recycling is generally a more sustainable alternative to landfilling. Its financial costs however, do not always justify its practice, especially in the short term. As a result, even for precious metals such as platinum, significant amounts can end up unrecovered. In considering risks of materials scarcity for firms that require platinum and platinum products, this paper examines how recycling provides additional benefits as a risk-mitigating strategy against scarcity. The experimental platform for this examination is a System Dynamics simulation model that strives to capture the dynamics of platinum market supply, demand and price. The detailed structures of supply and demand are key features of the model. Results show that since the secondary supply of platinum depends on a supply chain separate from primary extraction, recycling can diversify the risks of primary supply instabilities and reduce the impact of price fluctuations upon firms.