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By A. Lane

The socio economic risks of mining in South Africa have been emerging for some time now, and have been brought into sharp relief by recent events in the platinum sector. The slow pace of social upliftment in the country has lead to widespread social unrest with consequent calls for different forms of resource nationalism. Fundamentally, the key stakeholders are not fully aligned, and are not engaging productively. This poses significant above-the-ground risk to mining companies. Measuring social impact, deploying inclusive solutions and engaging effectively with stakeholders are three ways in which mining companies can mitigate this risk.

Jan 1, 2012

By D. Hanekom

Over the past couple of years, Anglo Platinum has made extensive use of technology within the core disciplines (geology, evaluation, survey, and planning) that collectively form part of mineral resource management (MRM). While these technologies were primarily developed to enable geology, evaluation, survey, and planning to carry out their daily tasks, with the main objective of supporting the mine?s production effort, they have also enhanced the disciplines? ability to produce the required outputs within the annual business planning cycle. Anglo Platinum has developed a very comprehensive business planning process, and these technologies play a vital role in enabling both the quality and quantity of inputs into the process, and also the value-add of the final product. This prompted a question regarding the practical application of the CADSMine software. If we changed our thinking in how we applied the software, would it be possible to further improve on the time taken to deliver a business plan? In changing the current planning approach, would we be able to further simplify the process? Is there a way to reduce the data generated in order to enhance the time taken to do reporting, as the CADSMine software is totally network dependent? Less data should equal faster reporting. This paper focuses on the practical application of the CADSMine software, and demonstrates the value-add to the business planning process that can be gained if the mine design methodology is changed from individual panels to bigger blocks representing a raise line.

Jan 1, 2012

By S. M. Rupprecht

A deposit to be mined by underground methods can be accessed by a number of methods: ? Adit ? Decline or ramp ? Inclined shaft ? Vertical shaft. Adits are an economical approach when the orebody is above the general floor elevation i.e. suitable in hilly or mountainous terrain. Incline shafts are limited to relatively shallow deposits, and because they are developed on an incline, development lengths for a given depth are the three to five times longer than for a vertical shaft. Vertical shafts are the preferred method for deposits deeper than 300 m but the development rate is slow and construction costs are very high. Declines or ramps offer early access to shallow deposits, which develops the ore body expediently, but are generally developed at a gradient of approximately 12 per cent. Decline haulages have become an attractive alternative to shaft hoisting, and over recent years the role of decline access has become more widespread throughout South Africa. Traditionally, South Africa has enjoyed the use of shaft systems, largely due to the large knowledge base of mining the Witwatersrand Basin, where vertical and inclined shafts were the norm. South Africa has also had the advantage of cheap electricity, giving shafts a definite economic advantage. However, in recent years the national power utility ESKOM has undergone an expansion programme that has led to tariff increases of nearly 100% over a three-year period. Based on the changes in electricity tariffs and technological improvements to underground haulage trucks, the economic inputs to access development have changed. This paper reviews mine access for shallow deposits as currently applied in South Africa. Based on current economic inputs, the paper investigates at what point a vertical shaft would be more economical than a decline system utilizing typical South African mining equipment.

Jan 1, 2012

The inherently explosion-proof mine (EPM) concept is based upon the non-flammability of certain combustible-oxidant-inert gas mixtures, and the effect of partial pressure of gases on physiological reactions. In a properly controlled underground environment, gas explosions are impossible, men can do work, and relatively high concentrations of methane would be permitted. A systems analysis has been performed to examine the physiological, engineering, and economic feasibility of such a concept, and methods and equipment are recommended for maintaining an EPM atmosphere in a bituminous coal mine producing a nominal two million tons of clean coal per year. It is concluded that: engineering feasibility can be demonstrated using subsystems and components that can be designed and built within the present state-of-the-art, that economic feasibility is possible within approximately five years, and that physiological feasibility is sufficiently promising to warrant continued investigation.

Jan 1, 2012

By Peter Faust

"The south access road to San Francisco’s Golden Gate Bridge, known as Doyle Drive or Presidio Parkway, needs to be replaced. Built in 1936, it is the primary highway and transit linkage through San Francisco between counties to the north and south. The roadway is tucked into the natural contours of the Presidio and the Golden Gate National Recreation Area, one of the nation’s largest urban parks.The old steel truss structure will be replaced by a new concrete cast-in-place bridge. The foundation design of the new bridge is based on drilled mono shafts below each bridge column. Most shafts required large diameter permanent steel casing installed under strict vibration limitations since several historic landmarks are near the project alignment. Malcolm Drilling decided to use the largest oscillator in the world to install the piles.The area occupied by the Presidio is generally hilly, sloping down northwards to San Francisco Bay. In the western half of the project route, two bluffs rise steeply to about 80 ft (25 m). The bluffs are separated by a valley 60 ft (18 m) deep and 1,500 ft (457 m) wide, which is spanned by the old and new bridge. Overburden soils in this valley are made up of artificial fill, slope debris, ravine fill and Colma Formation, a fine to medium-grained sand unit with clay beds. The Bay Muds encountered in the project area are typically soft clayey silts, becoming medium stiff with depth.The basement rocks underlying the overburden belong to the Franciscan Formation, described as shale, sandstone, serpentine and greywacke, it is extremely variable in hardness, fracturing and weathering. The material can vary from very hard to very soft, can be slightly to very intensely fractured and almost not weathered, to totally decomposed within relatively short distances both laterally and vertically. Rock strength can vary from too weak to be tested to serpentine layers with unconfined compressive strength of 15,000 psi (103MPa) or higher. Groundwater levels in the area are typically no more than 10 to 20 ft (3 to 6 m) below the ground surface."

Jan 1, 2012

By A. R. Miller

A fuel cell locomotive incorporates the advantages of its competitors, namely catenary-electric and diesel-electric units, while avoiding their disadvantages. It possesses the environmental benefits, at the vehicle, of an electric locomotive but the higher overall energy efficiency and lower infrastructure costs of a diesel locomotive. The natural fuel for a fuel cell is hydrogen, which can be produced from many renewable sources or via nuclear energy, and thus a hydrogen-fuel cell locomotive will not depend on imported oil. Hydrogen produced from renewable primary energies or nuclear energy would provide a totally zero-emissions vehicle, that is, with zero carbon in the energy cycle. A project partnership among Vehicle Projects Inc of the USA, and South African partners Anglo American Platinum, Ltd, Trident South Africa, and Battery Electric, has designed and is launching a series of five prototype fuel cell-powered mine locomotives.

Jan 1, 2012

By T. Nyakudarika

The Unki Platinum Mines concentrator, employing an MF2 circuit configuration which includes fully-autogenous primary milling of run-of-mine (ROM) ore, was commissioned in November 2010. The project was Anglo American Platinum?s first PGM concentrator in Zimbabwe and would form a significant contribution to the group?s platinum production. The project financials demonstrated that the project was operating-cost sensitive. After reviewing the metallurgical testwork, mineralogical examinations, and the history of similar operations, it became apparent that the Unki ore characteristics rendered it amenable to autogenous milling. The primary ball mill, structurally designed for 30 per cent steel load, could be operated at the required initial phase throughput with fully-autogenous primary milling, realizing savings in both power requirements and grinding media consumption. The original mill sizing had been done with fully-autogenous milling in mind, but allowing for flexibility and mitigation in case of varied mining fragmentation. Since attaining steady state, target grinds have been achieved. This paper looks at the Unki ore characterization programme, design considerations, and the operational and control philosophy for a successful comminution circuit, and discusses the design to produce a flexible, low opex, mitigated comminution and overall MF2 flowsheet that is easily expanded in line with the potential for optimum exploitation of the orebody.

Jan 1, 2012

By A. Marek

The safe and optimal installation of roof support remains one of the biggest challenges in underground mining today. Traditional hand-held, roofbolt installation in conventional mining has been replaced, in a lot of mining operations, by mechanized equipment. This was a first step to moving the operators out of the unsafe working environment and a start on the trend toward a changed support regime in mechanized mining. However, the challenge of handling of the drill steel itself, as well as inserting resin cartridges and bolts, remains a major hazard and the cause of many lost-time injuries. The paper describes and discusses developments in this area, of mechanized bolting and on-board automation, presenting solutions to known problems, achievements to date, and future developments. The solutions presented will identify with addressing customer needs while touching on possibilities for further technology changes, keeping focus on the safety aspect for operators and the need to bring the operators even further away from the unsafe working environment. The-state-of-the-art technology in mechanized bolting equipment is presented and a brief outlook on the past, current, and future developments is given.

Jan 1, 2012

The AMIRA Code of Practice and Guidelines for Metal Accounting was developed in response to demand from a number of sponsor companies, including one major platinum producer. Since its publication in 2007, the Code has become widely accepted in the mining industry world-wide as a guide for best practice in metal accounting. With the changes in the structure of the platinum mining industry in South Africa over the last 10 ? 15 years, in particular, the starting up of a number of small platinum producers who must have their concentrate smelted and the contained valuable metals refined by third parties, the need for metal accounting systems that are accurate and have an acceptable level of precision has become even more critical to the success of a platinum-producing operation. The current state of metal accounting in the industry is discussed and possible areas for improved accounting and associated metallurgical efficiencies are identified.

Jan 1, 2012

By R. Degel

Submerged arc furnaces and electric smelters are applied in numerous metal and slag production lines. Particularly in ferroalloy and non-ferrous metal production, like silicon metal, platinum group metals, calcium carbide, and copper, the units are an essential part of the production technology. Most of these electric furnaces are considered to be highly energy-intensive units. The high level of required electrical power is defined by the process. SMS developed several measures to reduce the overall electrical energy consumption of these metal production lines. In particular, the following measures contributes to a lower energy consumption: improved electrical efficiency with intelligent design and application of components, minimizing the heat losses from the furnaces with a balanced cooling/refractory systems, minimization of process steps (such as elimination of agglomeration), recovery of energy, process optimization (resulting in higher metal yield) and the achievement of higher recovery rates, enlarging furnace capacity to reduce heat losses, and maximizing the power-on time. This paper gives an overview of the above-mentioned solutions.

Jan 1, 2012

By R. Gebrekristos

It is commonly accepted that three types of aquifers exist in the Bushveld Complex: (a) alluvial aquifers in areas of river courses, (b) weathered bedrock aquifer formed by the in-situ weathering of the bedrocks, (c) fractured aquifers underlying the weathered aquifers controlled by the regional and local fracturing of the crystalline rocks. Hydrogeological studies conducted in the Critical Zone of the Bushveld Complex in the western limb show that the UG2 pyroxenite layer is of a particular interest and has a unique aquifer property. It yields much of the groundwater inflow into some mines and can be classified as the most important aquifer in the vicinity of the mining zone. The UG2 pyroxenite aquifer is restricted to the dipping UG2 pyroxenite unit. The unit weathers more intensely than the surrounding norites and anorthosites and is characterized by deeper weathering horizons (two to three times deeper than the surrounding rocks). For much of the UG2 mining area between depths of 35 ? 80 m, stoping of the UG2 takes place approximately 5 ? 7 m below the UG2 pyroxenite aquifer, and usually there is no groundwater inflow into the mine workings. However, unsealed deep exploration boreholes intersecting the UG2 pyroxenite and reaching underground mine workings, or mine roofbolts penetrating the weathered pyroxenite aquifer from underneath, can result in significant groundwater inflows into the underground workings. The reason as to why the UG2 pyroxenite weathers more than the norites and anorthosites has not been fully studied but is suspected to be due to the bedding planes of the unit and mineralogical composition of the particular pyroxenes forming the unit, which result in preferential physical and chemical weathering under atmospheric conditions. The weathered pyroxenes form sand-sized, rounded grains with improved effective porosity and permeability suitable for the storage and passage of groundwater. The orientation of the pyroxenite aquifer can easily be determined as it dips with the Bushveld layered strata. No-flow boundaries can be assumed on the hanging- and footwall of the pyroxenite aquifer and the flow rates can be estimated using 2-dimentional analytical equations. However, this must be confirmed with strong conceptual models since the existence of a fracture network connecting the pyroxenite aquifer with the overlying weathered and/or underling fractured aquifers can complicate the system, lowering the accuracy of analytical models and necessitating the utilization of numerical models.

Jan 1, 2012

By J. S. Laskowski

Anisotropic minerals are important constituents of many ores. This group includes both valuable minerals (e.g., molybdenite in Cu-Mo ores) as well as gangue minerals (e.g., talc in platinumbearing sulphide ores in South Africa, graphite in Cu-Ni sulphide ores in Canada, chrysotile in Ni sulphide ores in Australia, and clay minerals in all types of ores). Aqueous suspensions of anisotropic minerals exhibit different properties than suspensions of isotropic minerals. The presence of anisotropic minerals in flotation circuits affects the flotation process.

Jan 1, 2012

By L. Bloch

Most mine safety initiatives in South Africa are doomed to limited success because of one simple fact: they are a-historical and un-cultural and do not deal with the serious ?legacy issues? that still negatively impact on safety, production, and relationships. We in the SA mining industry continually use imported, foreign safety concepts and systems that will not work fully in a South African context. ?The 4th Wave: Culture-Based Behavioural Safety?, as developed by Lance Bloch, an international award-winning clinical psychologist with 12 years? experience in the mining industry - focused mostly on Platinum - is making waves. He has been very successful in creating people-centred, empowered, high-performance safety cultures wherever he has worked. Not only does the 4th Wave transform the corporate culture of a mine, improving safety and production and building an environment of Ubuntu, but it also uses people?s cultures as a means of winning hearts and minds in the battle for safe production. Powerful relationships are built through engagement at all levels, leading to all being focused on the best needs of the company and its constituents as a whole. The programmes are no less than nation-building - something most necessary in the industry, with the pressures from community, unions, the DMR, and politicians. This presentation will describe and discuss the 4th Wave as an advance on previous safety technology and programmes, as particularly relevant to platinum mining in South Africa today.

Jan 1, 2012

By C. A. Snyders

This paper investigates the recovery of platinum group metals (PGMs) from a dilute cyanide leach solution containing base metals, in a manner similar to that used for gold extraction in a typical CIP process, and focuses on both the adsorption and elution stages. The carrier-phase extraction of precious metals using activated carbon offers significant advantages over other processes in terms of simplicity, the high pre-concentration factor, rapid phase separation, and relatively low capital and operating costs. As a sorbent, activated carbon is still by far the most important material because of its large surface area, high adsorption capacity, porous structure, negligible environmental toxicity, low cost, and high purity standards. Adsorption tests were performed on a pregnant alkaline leach solution (0.15 ppm Pt, 0.38 ppm Pd, 0.1 ppm Au) resulting from cyanide extraction performed in column leach tests. The initial adsorption rates of platinum, palladium, and gold were very fast and recoveries of these three metals were approximately 90 per cent after 2 hours and 100 per cent, 97.4 per cent, and 99.9 per cent respectively after 72 hours. The parameters that influence the extraction of PGMs and Au were examined to assess their relative importance during the adsorption process in order to provide the basis for process optimization. The concentration of thiocyanate was not identified as significant factor for PGMs adsorption, while nickel concentration was the most significant extraction process parameter. Base metal cyanide complexes adsorb and compete with the PGM complexes for sites on activated carbon, and while copper adsorption can be minimized by adjusting the residence time, nickel adsorbs at approximately the same rate as that of the PGMs, influencing the loading capacity and adsorption kinetics of the PGMs. The feasibility of eluting platinum and palladium cyanide complexes from activated carbon using an analogue of the AARL process was investigated. Platinum and palladium elute from activated carbon almost to completion in 4 to 5 bed volumes at 80°C, while the elution of gold at this temperature is slow, with a significant amount of gold still to be eluted after 16 bed volumes. Cyanide pre-treatment was found to have a significant influence on PGM elution. Higher cyanide concentration in the pre-treatment step results in more efficient elution up to a point, and experiments suggest the possibility of an optimum cyanide concentration, beyond which elution efficiency starts decreasing.

Jan 1, 2012

By A. Marek

Reduced downtime and maximized availability of mining machines are the key factors in optimizing production rates. As technology moves industry towards an age of ?intelligent machines? it sets the foundation for change in mining equipment design, functionality, and maintenance. Recent mining machine designs are integrating more and more electronic components into the core functionality of individual piece of equipment due to regulatory and legislative requirements, such as TIER rating, as well as from a safety aspect such as personal detection systems. This paper describes the use of existing on-board electronic equipment to increase machine availability through automated maintenance planning and diagnostic fault-finding capability. The automated maintenance planning takes place on the machine itself in order to be independent of the mine?s infrastructure, while the diagnostic capabilities allow for reduced downtime. The paper also presents a concept to transfer operational data to surface to be able to optimize planning of maintenance and to reduce downtime. Case studies are presented where such systems have been commissioned and are currently in operation, the possibilities of this technology application for the future are examined.

Jan 1, 2012

By D. H. Diering

Definition of mineral resources and reserves forms the basis for effective mine planning and reliable public reporting of mineral assets. Historically the mineral resource and reserves declaration process has been the domain of the geology and surveying disciplines, with the declaration of the reserves by the surveyor being based on the application of modifying factors to the declared resources available for mining. As part of an ongoing process to improve efficiency, reliability, and reproducibility of results, this approach has been revised and enhanced through the introduction of a revised process and reconciliation tools. The revised approach to reserve definition is based on the definition of scheduled resources, at an appropriate confidence estimate in the context of an approved business plan, over the anticipated life of the mineral asset being applied to define reserves. This planning and scheduling is developed, during the annual business planning process, by the mine planning department using tools such as CADSMine?. The scheduled area together with the application of revised modifying factors is tabulated in the BME (basic mine equation) and reflects the mine production plan over time. Simplification of the modifying factors to dilution and losses underpins the simple yet robust approach to improved definition of reserves in this process and in the basic resource to reserve equation (BR2RE). Dilution intrinsically affects grade but not metal content, whereas the losses reflect both the efficiency of mining and planning and are reflected in metal losses, area losses, or both. Reconciliation of the derived ?resource converted to reserve? area, (which is based on the business plan from CADSMine?), versus the ?resource available for mining?, (which is derived from Datamine?), underpins the robustness and auditability of the reserves declaration. This R&R accounting and reconciliation approach is transparent and facilitates interrogation of the logic and rationale of long-term business planning and project strategy. These numbers are processed and reported in the logic of the basic resource equation (BRE), which also addresses aspects such as white areas (future and historic), tail management, and partial extraction (non-scheduled pillars, etc.) in compliance with SAMREC definitions. Areas that do not have the necessary confidence and data support to be declared as resources find their space as pre-resource (outside the domain of public reporting), outlining existing potential for future extraction and reporting. Use of the BRE leads ultimately to a complete, refined accounting and reconciliation-oriented approach for all production entities. The revised resource and reserve process includes the discipline of mine planning as intrinsic to the definition and declaration of resources and reserves. Subsequent to the change in process, the resources and reserves have truly become the domain of the mineral resource management discipline. This paper defines the logic of the basic resource equations and outlines their application in the definition and reconciliation of mineral resources and reserves at Anglo American Platinum Limited.

Jan 1, 2012

By K. Dewar

The catalytic converter industry is composed largely of global multinational manufacturers who supply to vehicle manufacturers (original equipment manufacturers ? OEMs) from facilities strategically located internationally, including plants in South Africa. The South African catalytic converter production facilities were established at the request of the OEMs and commenced manufacture in the early 1990s. This near 100 per cent export focused industry exists in South Africa because of the incentives offered by the Motor Industry Development Programme (MIDP), which ultimately provide the OEM with import duty rebates. The South African catalytic converter industry is a complex vertically-integrated supply chain with a local content in excess of 85 per cent, substantially more than any other exported automotive component. The industry remains one of the very few downstream manufacturing industries where South Africa has a significant global footprint. This is even more important when it is considered that this industry is the key end-user for two of South Africa?s most important mineral resources, namely platinum group metals (PGMs) and chromium, and is in an industry which will see massive global growth as the developing nations of the BRICs grow their auto industries. In over 15 years of existence in South Africa, the catalytic converter industry has achieved remarkable growth, averaging compound growth in the region of 14 per cent per annum. The industry is the highest contributor to automotive component export revenue. South Africa holds >8 per cent% of global PGM reserves. During 2011, South Africa supplied 59 per cent, 29 per cent, and 72 per cent of the global demand for platinum, palladium, and rhodium respectively, as well as over 50 per cent of the global chromium demand. Global autocatalyst production remains the largest consumer of PGMs, and South Africa alone beneficiated 15 per cent of locally mined PGMs in the production of catalytic converters ? all is converted from PGM sponge (powdered metal) into PGM solutions for coating onto catalysts. Beneficiation of PGMs also takes place via the production of jewellery and electronic goods; but compared to catalytic converters, this volume is negligible. The industry is also the largest consumer of locally produced stainless steel (>50 000 t/a), exceeding 38 per cent of local consumption. The industry is a substantial generator of highly skilled employment, with over 5 000 direct jobs (excluding OEMs and stainless steel manufacture) and an estimated more than 30 000 indirect jobs resulting from upstream and side-stream suppliers. The industry places a high focus on skills transfer and development, with all companies providing high-tech training and education both locally and overseas. The industry has invested in excess of R5 billion in plant, equipment, people development, and process development over the last 15 years to support transfer of production and new technologies to South Africa. This has resulted in significant skills development in the support industries as well as within the catalytic converter industry. The current projections for local PGM beneficiation via catalytic converters reflect a downward trend as a result of production being moved to other global locations due to uncertainty around changes to government incentive programmes. The industry is currently capacitated to support 23.7 million units per annum. During 2011 it utilized about 70 per cent of this capacity, but forecast projections suggest that this will be at 46 per cent of this level by 2016. At full capacity the industry would represent 19 per cent of global autocatalyst production compared with the current 13 per cent in 2011. The industry believes that there is potential to make South Africa the preferred location for catalytic converters worldwide, given suitable support from the mines and Government.

Jan 1, 2012

By D. Almond

Low-grade, complex mineral deposits have resulted in the need for complicated large-throughput processing plants delivering increased productivity, reliability, and utilization, together with reducing operational costs. Complex mineralogy has resulted in complicated process flow sheets designed to recover minerals as efficiently as possible. In addition, the remote location of many minerals-processing plants, continuously rising energy costs, and fierce competition pose significant challenges to the modern mine, compounded by a global scarcity of qualified and experienced operational personnel. Over the last decade the Internet and automation technologies have undergone major advancements. Automation technologies, solutions, and concepts that existed, but were considered risky or unreliable prior to the year 2000, have now gained acceptance and matured. Furthermore, new technologies and different collaboration schemes have appeared, offering innovative solutions to the mining industry to address many of the challenges described. These advancements in reliable remote systems that access technology through the Internet provide significant opportunity to support mining operations, enhance process performance, provide engineering services, and proactively anticipate and execute maintenance services. This paper references a global survey of automation trends in the mining industry and the potential for an intelligent collaborative environment using automation technologies to exploit opportunities in operating the plant of the future, increasing effectiveness, and reducing operational costs. A variety of possibilities are described, including asset management solutions, remote access capabilities, performance monitoring solutions, advanced process control technologies, and the formation of an intelligent collaborative environment. A real example where this technology is used to support the operation and maintenance at a cement plant in Egypt is given to underpin the concepts described in this paper.

Jan 1, 2012

By M. Karsten

Platinum mines in the Bushveld Complex are located in areas with a high geothermal gradient. This means that, compared to, for example, gold mines of the Witwatersrand region, high rock temperatures are encountered at relatively shallower depths. Thus air cooling and refrigeration need to be considered at early stages in mine development. Another factor that influences air cooling and ventilation requirements is the use of trackless diesel equipment for loading and hauling broken rock. At shallower depths it will be more cost-effective to locate the cooling and ventilation equipment on surface, whereas for deeper mines the more cost-effective option is to locate cooling equipment underground. For intermediate depths, trade-off studies need to be undertaken to determine the optimum mix between more cooling and less air or more air and less cooling, as well as the optimum location for this cooling equipment. Factors that are taken into account include power requirements, positional efficiency, and additional infrastructure requirements. Traditionally the approach has been to ventilate ?all of the mine all of the time?. However, with increasing power costs and growing pressure to ensure sustainability, this strategy must be modified to apply ventilation and cooling on demand. In other words, both cooling and ventilation equipment should be operated only when needed and should be adjusted to the demand at the time. Obviously there will be areas that will need to be ventilated (and cooled) continuously (for example, for dilution of flammable gases), but this can be built in to the overall strategy. In addition, in devising ventilation on demand (VoD) strategies, occupational criteria relating to exposure to gases, noise, and heat need to be taken into account. This paper discusses options available for implementing energy-efficient ventilation and cooling systems and suggests ways of changing traditional thinking in the overall ventilation and cooling of mines. Efficient ventilation and cooling designs can play a major role in improving sustainability and reducing energy costs and carbon footprint.

Jan 1, 2012

By T. C. Huber

The southern African region has a high concentration of mineral resources and supplies much of the world?s platinum demand. As a result, the international community watches South Africa to understand the impact of supply on global markets. An analysis of supply certainty and risk plays a key role in the future of growing demand in various sectors. The southern African platinum industry experienced substantial growth in the early part of the 21st century, resulting in bullish forecasts for growth during the period of 2000?2006. However, southern African platinum producers saw a significant drop in production over the following three years as a result of many dynamic factors in operations and the global economy. Between 2006 and 2009 there was a million-ounce shortfall between forecast and actual production. This was raised as a concern at the Fourth International Platinum Conference in 2010 by Stephen Forrest during his keynote address, specifically regarding the lack of understanding in the market of the causes of this shortfall and any action that was being taken to address them. This paper reviews publicly available information in the media and corporate reports and communications for the period January 2006 to December 2009. In addition, several interviews were held with key stakeholders in the industry to provide further perspective. The paper then highlights the main reasons that are reported to have affected the loss in production over the period and discusses the possible implications of the information that the mining industry does and does not disclose regarding platinum supply.

Jan 1, 2012