The South African mining industry is set for a windfall as a result of increasing Chinese demand for automotives and emissions technology, according to a new report.

Trade and Investment SA (Tisa) says in its latest report on developments in the automotive industry, that the Chinese market offers genuine opportunities for pgm producers.

Pointing to the strong political bonds that already exist between South Africa and China, the report claims that the country is well placed to serve China's pgm needs.

'China will need large quantities of platinum group metals, catalytic converters and a range of other automotive-related products and materials, which South Africa would be able to supply,' the report said.

The report said that the prospects for the automotive component business appeared almost limitless.

China has been identified as the fastest growing automotive market in the world, driving a strong demand for pgms within that industry to cater for autocatalysts.