Implats marketing director has today hailed the spot fall in platinum prices as a welcome boost for sustaining the long-term demand for the pgm.

Derek Engelbrecht said that the fall would help the metal avoid the pitfalls that some observers discerned in the trajectory of rhodium and platinum - which saw demand slip away as prices rocketed.

In both instances automotive manufacturers began searching for alternative metals to use in auto catalysts.

"The fall in platinum was triggered by comments by US Federal Reserve chairman Alan Greenspan that there are no longer concerns about deflation," Engelbrecht told Business Day.

And whilst acknowledging that the fall could be overdone, Mr Engelbrecht said the drop from levels around $900 per oz was welcome.

Meanwhile, it was also revealed today that South Africa earned 10 per cent more from mineral exports last year than it earned in 2002, as rising production of platinum helped drive up the output.

The department of minerals and energy said production of platinum group metals rose 12.5 per cent to 266.2 metric tons.

A total of 148.3 tons of platinum, 70.9 tons of palladium and 16.8 tons of rhodium were produced.