The South African platinum industry has seen a recent influx of small mining companies, all keen to benefit from the increasing cost of the metal.

Despite the presence of two major firms in the area, Anglo Platinum and Impala Platinum, it seems that junior companies are confident that they can also profit from mining for fresh deposits.

The past 12 months has seen over 18 small firms start the process of raising finance and securing ground, reports Reuters, although many are finding it difficult to persuade potential investors to get involved.

"There are an awful lot of companies working here... on 40 projects. By the nature of exploration, some of those projects will succeed and some will fail," commented Stuart Comline, chairman of AfriOre.

Production is still a long way off for any successful companies and current plans by firms such as African Platinum will not see full production for another five years.

Recent increases in the price of platinum have prompted the rise in activity, explained analysts, with prices reaching $1,083 per ounce last week.

Ÿ Adfero Ltd