Latest figures have revealed that there was a fall in South Africa's platinum group metal (pgm) production during the three months to November 2005.

According to data revealed by Stats SA, total mining production in the country fell by 3.8 per cent compared to the previous quarter, with pgm production being hit particularly hard.

The research shows that pgm production fell by 13 per cent during the quarter compared to the previous quarter, Business Day reports.

A prolonged decline in the pgm market could cause prices for platinum and other pgms to continue to spiral, as global demand for platinum is anticipated to rise to 6.71 million ounces when all the data is collected for 2005, but the Stats SA report suggests supplies for last year will only reach 6.59 million ounces.

However, analysts have suggested that the fall in production may only be a short-term blip, caused by the drop in refined metal being produced by Angloplats due to its smelter being shut down at the Polokwane plant.

The smelter was shut down in September following an explosion, but has now been repaired and refurbished and Angloplats has confirmed that it came back online earlier this month.


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