A Strategic Review of South Africa's Platinum Group Metals Mining ...

A Strategic Review of South Africa’s Platinum
Group Metals Mining Industry
Automation and Electronics (A &E)
Research Service Code: M378-10
Completion Date: February 2009

Table of Contents
Background to Study Slide 03
Research Aims and Objectives Slide 04
Research Methodology Slide 05
Research Deliverables Slide 07
Benefits of Research Slide 10
Frost & Sullivan Company Information and Contacts Slide 11
Content
2

Background to Study
The global platinum group metals mining industry is a
fairly unstable one that is characterised by rising demand
from global automotive and fabrication sectors on one hand
and constrained supply sources on the other.
Frost and Sullivan: Key Drivers of Growth of South
Africa’s Platinum Group Metals Mining Industry
Although South Africa’s platinum group metals mining
sector is the largest and fastest growing sector in the entire
mining industry, it remains beholden to economic
developments in the global automotive industry which
accounts for over 60% of the total global demand for
platinum.
The prolonged failure of the leading three US automakers
to access bail out funds, the one month closure of Chrysler
and declining new vehicle sales across Europe and America
will continue to depress platinum production in South Africa.
Abundant platinum
deposits
Rising platinum
prices
Transformation of
the industry
Global automotive
industry
Supporting
industries
Sound investment climate
This report which provides information on global platinum
production trends, South Africa’s platinum production trends
and price trends.
South Africa’s Platinum Group
Metals Mining Industry
3

Research Aims and Objectives
Research Aims
Research Objectives
A
Understanding the global platinum demand and
supply flows and South Africa’s position in the
global platinum industry.
This research service is a
strategic analysis of South
Africa’s platinum group
metals mining industry with
the objectives of
B
C
D
E
Determining and forecasting South Africa’s
platinum group metals production trends.
Understanding the competitive landscape of South
Africa’s platinum mining industry.
Understanding and forecasting platinum price
trends.
Determining the key drivers of growth, challenges
and restraints facing South Africa’s platinum
mining industry.
4

Research Methodology
Frost and Sullivan market engineering reports utilize of both primary data and secondary data to produce a
holistic and balanced view of the industry being studied. In this research study primary data was collected
through telephone interviews with key industry players and other stakeholders such as South Africa’s
Chamber of Mines, the Department of Minerals and Energy and employee representatives. Secondary data
was collected through an extensive review of information that is publicly made available from government,
South Africa’s Chamber of Mines, key industry players and employee representatives.
Stakeholder Type Target Designations Type of Information
Key Industry Participants
Senior managers in strategy
planning, investor relations,
economics and research
Company production trends, revenue
trends, cash costs trends and market
dynamics.
South African Chamber of
Mines
Economics Unit of the Chamber of
Mines
Current and future production trends in the
platinum mining, market dynamics and other
strategic developments in the industry
Department of Minerals and
Energy
Mineral Economics section of the
Department of Minerals and
Energy
Regulatory framework, infrastructure
analysis, current and future platinum
group metals production trends
5

Research Deliverables
This research service provides a strategic analysis of South Africa’s platinum group metals
mining industry with the objectives of understanding platinum group metals production trends,
platinum price trends, challenges, drivers and restraints facing the industry. Attached below is a
Table of Contents highlighting the topics covered in this research study.
Executive Summary
Introduction
Research Overview
Market Overview
Key Findings
Strategic Conclusions
Research Scope & Definitions
Research Scope
Research Definitions
Research Methodology
Methodology
Research Aim & Objectives
Research Aim
Research Objectives
6

Research Deliverables (Contd…)
Table of Contents (Contd…)
Global Platinum Mining Industry
Global Platinum Market Dynamics
Global Platinum Demand and Supply Flows
Global Platinum Demand
Industry Challenges
Market Drivers
Global Palladium Demand
Global Rhodium Demand
Global Platinum Supply
Market Restraints
South Africa’s Platinum Production Forecasts
Platinum Price Forecasts
South Africa’s Platinum Mining Industry
7

Research Deliverables (Contd…)
Table of Contents (Contd…)
Competitive Landscape
About Frost & Sullivan
Industry Structure
Company Profiles
List of Key Industry Participants
oWho is Frost & Sullivan
What Makes us Unique
T.E.A.M Methodology
Global Perspective
8

Benefits of Research
Provides market sizes of key
industry participants
Identification and analysis
of global platinum group
metals production trends
8
1
2
Detailed and comprehensive
competitive analysis of South
Africa’s platinum mining
industry
Identification of South
Africa’s position in the
global platinum mining
industry
7
Research
Benefits
3
Analysis of platinum price
trends and forecasts
Identifies key industries
challenges and market
dynamics
6
5
4
Strategic conclusions
Provides South Africa’s
platinum production
forecasts between 2009 and
2014
9

Who will benefit
Who?
How?
Current Market
Participants
•Find out how you compare to the competition
•Determine and exploit new market share
opportunities
New Entrants
•Analyse challenges associated with the industry
•Position yourself to capitalise on the market’s
unmet needs
Investment
Community
•Analyse long-term strategies of participating
companies
•Determine which participants will outperform the
competition
•Assess attractiveness of investing in the platinum
group metals mining industry
10

Frost & Sullivan contacts
Phil Howarth
Operations Director
Frost & Sullivan Africa
+27 21 680 3269
phil.howarth@frost.com
Guillaume de Bassompierre
Account Manager
Frost & Sullivan
+27 21 680 3286
+27 71 684 0011
guillaume.bassompierre@frost.com
David Winter
Programme Manager
Frost & Sullivan Africa
+27 21 680 3275
David.winter@frost.com
11