Canada is set to continue with investment in South Africa’s mining industry, with the platinum sectors one of the areas to benefit according to new analysis.

In 2004, mining companies raised almost three times as much equity on the
Toronto Stock Exchange than on any other exchange in the world, with Toronto Stock Exchange-listed Platinum Group Metals president Michael Jones confident of this trend continuing.

With 1109 firms and an aggregate market capitalisation of $140 billion, it is though that the TSX can provide a significant boost to investment in the South African platinum mining industry.

Mr Jones told Mining Weekly that recent changes in South Africa's mining legislation, such as the enactment of the Mineral and Petroleum Resources Development Act, would only speed up this process.

“The new Act provides for greater access to South Africa’s enormous mineral wealth and has accelerated the pace of change in the local mining industry," he explained.

“As South Africa becomes a bigger participant in the global capital markets, discoveries will result in new risk-taking, new ideas, an exchange of information and a new culture of cooperative exploration.”

While counselling caution in light of reluctance among some in South Africa to embrace the new rules, Jones said he was confident that platinum firms' relationship with the TSX will become closer.