Platinum hits 4-month peak, palladium rockets to 16-month high

ICE, ICE baby

The platinum price hit a four-month high on Monday, adding $10 to $1,709 an ounce in New York while sister metal palladium added more than 1% to $766 an ounce.

Platinum is up over 10.6% so far this year and palladium has added 9% in value in 2013 and is now trading at the highest since September 2011.

The latest jump came after reports of a surge in automobile sales in the US.

Platinum and palladium are used in catalytic converters in cars and trucks to reduce emissions.

What is really driving the PGM market however is supply; which unlike other precious metals is highly concentrated.

South Africa produces more than 75% of the global supply, while most of the remainder comes from Russia.

The South African platinum industry has been lurching from crisis to crisis since a massacre in August last year on a platinum mine owned by Lonmin.

Strikes and rocketing costs recently forced no. 1 platinum miner Amplats to announce massive layoffs and closure of mines.

Russia holds a stockpile of palladium which it feeds into or withholds from the market to steer prices higher, but many observers now believe  that stockpile has been depleted or is near to depletion.

Image by EvrenKalinbacak /

521 0
Latest Stories


Reuters: Kinross Gold to pay $350 million for full ownership of Russian mine

Kinross Gold, recently cashed up from its stake sale in Harry Winston Diamond Corp., has now agreed to pay $350 million for full ownership of the Kupol mine in Russia. The mine would account for about 17% of Kinross' gold equivalent production in 2011. Reuters reports: Gold miner Kinross Gold Corp. said it signed an agreement to buy the stake it does not already own in Chukotka Mining and Geological Co for about $350 million, giving it full ownership of the Russian mining company.

The West Australian reports a loss of mine workers to the east coast

Western Australia could struggle to find the people needed to exploit the biggest mining boom in more than a century, the West Australian reports, because of fly-in, fly-out workers heading to other parts of Australia.
As Premier Colin Barnett called for increased immigration, including guest workers, to deal with skills shortages in WA's north, a BIS Shrapnel senior analyst warned that competition with Queensland to man projects was so intense that WA could lose out to its fellow resources State.

Australian mining: new online forum launched to discuss skills shortage in mining industry

Australian Mining has announced that a new online forum has been developed to discuss issues of the skills shortage in the mining sector in Australia.

Mining for Skills, developed by Manpower, is an online forum hoping to engage people and companies at all corners of the resource industry, from government and resource companies to recruitment professionals and job seekers.

Nunatsiaq Online reports on Greenland’s mine school: quality learning, in English

Reporters from Nunatsiaq Online hear from Hans Henrichsen, manager of the Greenland School of Minerals and Petroleum in Sisimiut.
"We are taking the best of the best in Greenland. Our goal is to prove that Greenland miners are as good as any around the world,” Henrichsen said March 31 to a group of visitors from Nunavut. Agnico-Eagles Mines Ltd. flew the group to Greenland following a two-day tour of the company’s gold mine in Kittilä, Finland, where the Nunavut visitors met numerous highly educated Finns who have landed good jobs in mining.

Midway Gold announces positive prefeasibility study for Pan Gold Project, Nevada

Midway Gold Corp. (TSX.V and NYSE Amex: MDW) announces the results of a positive Prefeasibility Study of its Pan gold project located in White Pine County, Nevada. The accompanying National Instrument (NI) 43-101 technical report will be filed on SEDAR within 45 days. This NI 43-101 report was independently prepared by Gustavson Associates, LLC ("Gustavson") of Lakewood, Colorado, and concludes that the Pan Project is economically viable and amenable to heap leach mining operations, as summarized below.