PGM mining in South Africa could soon be augmented by the addition of five new smelters, according to David Kovarsky of smelter manufacturer Pyromet.

Speaking to Mining Weekly Online, Mr Kovarsky said: "In the next five years, we’re probably looking at about five new smelters, including the two that we’re doing studies on, and that’s a conservative figure."

The influx of new smelters is attributed by the company’s chief operating officer on increased demand for platinum for use in autocatalysts and the consequent high price it is commanding, which has fostered moves on behalf of South Africa’s mining companies to up production.

News of Mr Kovarsky’s projections coincides with a report from RBC Capital Markets that highlighted the paucity of smelting and refining facilties in South African platinum mining interests owned by junior companies, which it is perceived could slow up production and impact on investors willingness to invest in the sector.

In particular the report noted the prohibitive cost of smelters and refining facilities, which it calculated necessitated that a mine must generate up to 250,000 to 300,000 oz of platinum annually in order to recoup the initial outlay of up to $950 million.


Source:

SA may get 5 new platinum smelters in as many years, 24/04/07

http://www.miningweekly.co.za/article.php?a_id=107589 

The PGM devil’s in the smelter, 20/04/07

http://www.mineweb.net/mineweb/view/mineweb/en/page35?oid=19881&sn=Detail

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