PGM production in South Africa declined by 19 per cent on a year-on-year basis in October, it was confirmed today (10th December).

Data released by Statistics South Africa revealed that the country's sales - which lag production figures by a month - dropped by 22 per cent to R6.3 billion in September.

According to the body, the decrease can largely be attributed to falling pgm prices amid the economic downturn, which forced major companies to close mines.

The strain was felt particularly by Anglo Platinum and Lonmin - the world's largest and third-largest platinum producers respectively - who cut 16,000 jobs through mine closures.

Furthermore, declining vehicles sales had a major impact on demand for platinum, which forms a key element of the catalytic converters used to reduce harmful emissions.

Statistics South Africa also revealed that gold production in the country slumped by 5.8 per cent in October from a year earlier, with local diamond output falling by 43 per cent.

South Africa is the world's largest platinum-producing nation and accounts for roughly 75 per cent of global supplies of the precious metal.

Source:

South Africa, Biggest Platinum Producer, Posts 19% Output Drop (10/12/09)

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