Market development and beneficiation strategy

Market development and beneficiation strategy

Anglo Platinum Limited plays a vital role in the South African economy and has aligned its marketing strategy to support Government's policy of growth by addition to its mineral resources. The aspect of market development is fundamental to the long-term sustainability of our business and we continue to identify opportunities for downstream value addition. 

The Company continued in its role of building capacity, funding research and development, and supporting and investing in new ventures in various sectors that use platinum group metals. 

Jewellery development

Much in line with global trends, the platinum jewellery market was depressed owing to the higher metal prices and the impact of the recessionary environment in South Africa. The market remains very small but the infrastructure is developing to provide a platform for growth.

In 2010, sales through the metal financing scheme and COD were lower as the recession impacted on local spending by consumers. The number of manufacturers on the scheme dropped to 18 from 20. The table below shows South African sales of platinum and palladium jewellery since 2006. 

2010 2009 2008 2007 2006
Platinum (ounces) 1,282 1,988 2,842 1,120 1,148
Palladium (ounces) 2,858 3,016 1,610 1,355 3,548
Consignment customers 18 20 13 8 4


In building capacity the Company supports six training institutions, reaching students who have the opportunity to work with platinum and discover the exceptional qualities of the metal and the unique characteristics that make it the premium metal in jewellery. Two students were assisted financially to attend international institutions; one has completed her tenure at the Creative Academy in Milan, part of the Richemont group, and the other is in the final year of his Master's at the Konstfack University in Sweden.

The 12th annual PLATAFRICA design and manufacture competition was successful and an opportunity for designers to show their talent, with interesting designs created under the 'Platinum Predictions' theme. Selected designers were also given the opportunity to contribute their skills in a fund-raising event for the Nelson Mandela Foundation.

Six local designers were selected to participate in an SA/Japan Government-sponsored initiative that allowed them to interact with their Japanese counterparts in Tokyo. This was part of the SA-JAPAN centenary celebrations and gave our designers the opportunity to visit training institutions and workshops in Japan and to share knowledge and experience. It culminated in a gala event where the designs were showcased.

The platinum manufacturing section within Alan Mair Manufacturing Jewellery made strides in growing the market share and developing its expertise in platinum and palladium jewellery manufacture. 

Industrial development

The Company supplies approximately one eighth of its production to local fabricators mainly in the autocatalyst business, as the country is responsible for the production of about 14% of the world supply. We develop capacity in research and development for new applications and uses for PGMs. We continue to fund research products at multiple institutions and track the output regularly.

Fuel-cell technology offers the platinum industry good growth prospects. As a result, the Company has undertaken to stimulate and support the growth in this sector. This work will culminate in a specific fuel-cell strategy for the Group which will be launched in 2011.

The Company has already committed capital to the PGM development fund which aims to invest in enterprises that use PGMs in their process or sell them as part of their final product. Several proposals are currently under investigation. With the Department of Science and Technology, the fund has invested in a fuel-cell company called Altergy. The investment into Altergy has resulted in the formation of a local company called Clean Tech. It will be responsible for marketing and distributing products mainly to the telecommunications industry in sub-Saharan Africa and will set up a manufacturing facility if the market proves viable.

The demonstration 200 kw fuel-cell unit continues to generate electricity for the Anglo Coal Bulklip operation using coal-bed methane as the fuel source. The unit continues to serve its purpose of demonstrating fuel-cell technology and building local understanding of the industry.

Beneficiation remains an exciting area of the business and the Company will continue to actively pursue new applications for PGMs, together with its partners.