IC 9338 Availability Of Platinum And Platinum-Group Metals

The U.S. Bureau of Mines investigated the availability of platinum, palladium, and rhodium from 16 deposits in four market economy countries (MEC's). Major recoverable products include 164 Moz of platinum, 80 Moz of palladium, 13 Moz of rhodium, 24 Moz of ruthenium, 4 Moz of Iridium, 2 Moz of Osmium, and 10 Moz of gold. The 12 deposits in the Republic of South Africa are estimated to account for 96.7 pct of total recoverable platinum. The base-case scenario estimates the long-term cost of production including recovery of capital, but provides no return on the investment or O-pct discounted cash-flow rate of return (DCFROR). The total production costs in January 1990 U.S. dollars ranged from $325/oz to $1,288/oz of platinum compared to an average January 1990 price of $492/oz. Approximately 83 pct of total recoverable platinum was economic at a cost level of $4S0/oz or less. At the IS-pct DCFROR, only 26 pct of total recoverable platinum was economic. For platinum-group metals (PGM), attention has been focused on the ratios of the three primary metals: platinum, palladium, and rhodium. Sensitivity analyses were performed to determine the impact long-term rhodium price increases could have on the total cost of production for platinum and palladium.