More platinum group metals (pgms) mined in South Africa will stay in the country in future, the Department of Mineral Resources (DMR) has said.

Domestic pgm sales will rise as the government begins to impel firms into beneficiation, reports Mining Weekly.

DMR chief mineral economist for precious metals Donald Moumakwa told the publication that the current situation is not helping South Africa achieve maximum value from its large platinum reserves.

"The pgm industry is still very much export-orientated, with about 85 per cent of the metals leaving the country," he explained.

"The bulk of these are headed for the catalytic converter and fuel cell industries, as mitigating opportunities are accelerated in response to climate change threats."

In November, South African mineral resources minister Susan Shabangu said a beneficiation strategy had been approved by the South African cabinet in June.

Business Day reported this week that the ruling African National Congress looks likely to rule out mine nationalisation in favour of improved beneficiation.

A report to be debated by the party's national executive committee this weekend argues that nationalisation would be too costly and unconstitutional.

Mr Moumakwa went on to tell Mining Weekly that pgm  production is likely to increase this year, though he noted that the number of projects is still down from the period before the 2008 financial crisis.

DMR acting director of mineral economics Nyakallo Dlambulo suggested, however, that the resurgent automotive industry is likely to spur much greater demand for platinum.

"As the number of vehicles on the road increases, further emissions reduction measures for these vehicles are demanded in response to increasingly stringent emissions standards," she said.

"This provides South Africa with increased pgms demand from the catalytic converters industry."

Mr Moumakwa finished by saying he is confident South Africa can continue to mine pgms for at least another 250 years.

Sources:



Government impels local PGM beneficiation (03/02/12)



ANC study ‘advises against’ mine grabs (02/02/12)



ANC Study Rejects Nationalization of South Africa Mines, Business Day Says (02/02/12)

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