If you are thinking of investing in platinum, this article aims to give you some background information before making an investment decision.
It briefly explains the platinum mining process, how the precious metal is refined and summarises where the main platinum mining regions are located and who the major producers are.
How does the platinum mining process work?
Platinum occurs as the native metal, and as an alloy with iron and other platinum group metals. Often it is found in copper and nickel ores.
Deposits occur as both primary deposits (often as copper and copper-nickel sulphide ores) and placer deposits with gold and iridium. Abundances of platinum in these ores vary widely. There are around 90 known platinum minerals.
New platinum is obtained from three sources:
- Native platinum and its alloys occur in alluvial gravel beds known as placer deposits. The platinum bearing gravel is dredged from pits, and river beds and the material is washed.
- It is also mined as an ore such as sperrylite (a platinum arsenide PtAs2) and cooperate.
- It is also obtained as a by-product from mining other metals such as nickel and copper.
Platinum ores are extracted by opencast and underground mining. The former is used mainly for placer deposits and the latter for primary deposits, though there is some overlap.
How is platinum refined?
Refining platinum is a long, complicated process which can take up to six months, and is extremely low yielding. Typically it takes 11 tonnes of ore to produce a single troy ounce of platinum.
- First, the ore is crushed and milled then mixed with water and various re–agents. Air is pumped through the mix which brings platinum particles to the surface, a process called floatation separation. The platinum-rich surface froth is skimmed off and dried
- The resulting powder is heated at high temperatures to remove impurities, and air is blown over the surface to remove sulphur and iron. Remaining base metals such as copper and nickel are removed chemically
- The platinum is then dissolved in aqua regia, and the resulting solution filtered, purified and heat treated to produce the pure metal.
Which countries produce platinum today?
Today, most of the world’s platinum is produced in South Africa where it produces 68% of the metal and is the nation’s leading export item. The first nuggets were discovered there in 1924, and this led to the discovery of significant deposits now known as the Bushveld Igneous Complex. For many years, the numerous mines in this region produced over 75% of the world’s platinum.
The world’s second largest platinum producing country is Russia, with most coming from the Ural Mountains and the Russian Far East. Zimbabwe, Canada, and the United States also produce significant quantities of the metal.
Who are the main miners and producers of platinum?
Platinum production is dominated by ten companies, with the top five of these producing around 70% of global platinum production. The companies are listed in the table below:
| World Largest Platinum Mining Companies | ||
| COMPANY | TOTAL PRODUCED (2014) | LOCATION OF MINES |
| Anglo American Platinum | 1,890,000 oz | South Africa and Zimbabwe |
| Impala Platinum | 1,180,000 oz | Bushveld Complex South Africa (Bushveld Complex); Zimbabwe (Great Dyke) |
| Norilsk Nickel | 675,000 oz | Russia, Botswana |
| Lonmin PLC | 436,000 oz | South Africa (Marikana) |
| Stillwater Mining | 285,000 oz | Montana, USA |
| Northam Platinum Ltd. | 241,000 oz | South Africa (Bushveld Complex, Zondereinde and Booysendal) |
| Aquarius Platinum | 184,150 oz | South Africa (Bushveld Complex) |
| Vale SA | 182,000 oz | Canada (Sudbury nickel mine) |
| Glencore PLC | 91,000 oz | Canada (Sudbury basin); South Africa (Bushveld Complex) |
| Asahi Holdings | 44,800 | Recycling only |
Investing in platinum
If you want to learn more about how platinum was discovered or investing in platinum, then please follow the links.
