Platinum juniors are entering the market in large numbers in a bid to benefit from strong platinum prices and good long-term prospects, it has been claimed.

David Jollie, Johnson Matthey precious metals market analyst and publications manager, told Mining Weekly that exploration prospects have developed as a result.

He also explained that this surge in activity was unlikely to affect prices in the short term, due to the time constraints involved in setting up exploration projects.

Mr Jollie revealed that the weakening of the US dollar and a strong oil price contributed to the strong price of platinum.

"At about that time, we also had a few strikes surrounding pay negotiations in South Africa, as well as short safety-related stoppages. So you had these things tightening the market, which was fairly tight anyway," he explained.

Figures from Johnson Matthey report that the global demand for platinum increased by 8.6 per cent during 2007 on the back of strong demand from the auto catalyst industry.



Source:

Platinum price hikes birth string of junior miners, 22/08/08
http://www.miningweekly.com/article.php?a_id=140165