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

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A <strong>Strategic</strong> <strong>Review</strong> <strong>of</strong> <strong>South</strong> Africa’s <strong>Platinum</strong><br />

<strong>Group</strong> <strong>Metals</strong> <strong>Mining</strong> Industry<br />

Automation and Electronics (A &E)<br />

Research Service Code: M378-10<br />

Completion Date: February 2009


Table <strong>of</strong> Contents<br />

Background to Study Slide 03<br />

Research Aims and Objectives Slide 04<br />

Research Methodology Slide 05<br />

Research Deliverables Slide 07<br />

Benefits <strong>of</strong> Research Slide 10<br />

Frost & Sullivan Company Information and Contacts Slide 11<br />

Content<br />

2


Background to Study<br />

The global platinum group metals mining industry is a<br />

fairly unstable one that is characterised by rising demand<br />

from global automotive and fabrication sectors on one hand<br />

and constrained supply sources on the other.<br />

Frost and Sullivan: Key Drivers <strong>of</strong> Growth <strong>of</strong> <strong>South</strong><br />

Africa’s <strong>Platinum</strong> <strong>Group</strong> <strong>Metals</strong> <strong>Mining</strong> Industry<br />

Although <strong>South</strong> Africa’s platinum group metals mining<br />

sector is the largest and fastest growing sector in the entire<br />

mining industry, it remains beholden to economic<br />

developments in the global automotive industry which<br />

accounts for over 60% <strong>of</strong> the total global demand for<br />

platinum.<br />

The prolonged failure <strong>of</strong> the leading three US automakers<br />

to access bail out funds, the one month closure <strong>of</strong> Chrysler<br />

and declining new vehicle sales across Europe and America<br />

will continue to depress platinum production in <strong>South</strong> Africa.<br />

Abundant platinum<br />

deposits<br />

Rising platinum<br />

prices<br />

Transformation <strong>of</strong><br />

the industry<br />

Global automotive<br />

industry<br />

Supporting<br />

industries<br />

Sound investment climate<br />

This report which provides information on global platinum<br />

production trends, <strong>South</strong> Africa’s platinum production trends<br />

and price trends.<br />

<strong>South</strong> Africa’s <strong>Platinum</strong> <strong>Group</strong><br />

<strong>Metals</strong> <strong>Mining</strong> Industry<br />

3


Research Aims and Objectives<br />

Research Aims<br />

Research Objectives<br />

A<br />

Understanding the global platinum demand and<br />

supply flows and <strong>South</strong> Africa’s position in the<br />

global platinum industry.<br />

This research service is a<br />

strategic analysis <strong>of</strong> <strong>South</strong><br />

Africa’s platinum group<br />

metals mining industry with<br />

the objectives <strong>of</strong><br />

B<br />

C<br />

D<br />

E<br />

Determining and forecasting <strong>South</strong> Africa’s<br />

platinum group metals production trends.<br />

Understanding the competitive landscape <strong>of</strong> <strong>South</strong><br />

Africa’s platinum mining industry.<br />

Understanding and forecasting platinum price<br />

trends.<br />

Determining the key drivers <strong>of</strong> growth, challenges<br />

and restraints facing <strong>South</strong> Africa’s platinum<br />

mining industry.<br />

4


Research Methodology<br />

Frost and Sullivan market engineering reports utilize <strong>of</strong> both primary data and secondary data to produce a<br />

holistic and balanced view <strong>of</strong> the industry being studied. In this research study primary data was collected<br />

through telephone interviews with key industry players and other stakeholders such as <strong>South</strong> Africa’s<br />

Chamber <strong>of</strong> Mines, the Department <strong>of</strong> Minerals and Energy and employee representatives. Secondary data<br />

was collected through an extensive review <strong>of</strong> information that is publicly made available from government,<br />

<strong>South</strong> Africa’s Chamber <strong>of</strong> Mines, key industry players and employee representatives.<br />

Stakeholder Type Target Designations Type <strong>of</strong> Information<br />

Key Industry Participants<br />

Senior managers in strategy<br />

planning, investor relations,<br />

economics and research<br />

Company production trends, revenue<br />

trends, cash costs trends and market<br />

dynamics.<br />

<strong>South</strong> African Chamber <strong>of</strong><br />

Mines<br />

Economics Unit <strong>of</strong> the Chamber <strong>of</strong><br />

Mines<br />

Current and future production trends in the<br />

platinum mining, market dynamics and other<br />

strategic developments in the industry<br />

Department <strong>of</strong> Minerals and<br />

Energy<br />

Mineral Economics section <strong>of</strong> the<br />

Department <strong>of</strong> Minerals and<br />

Energy<br />

Regulatory framework, infrastructure<br />

analysis, current and future platinum<br />

group metals production trends<br />

5


Research Deliverables<br />

This research service provides a strategic analysis <strong>of</strong> <strong>South</strong> Africa’s platinum group metals<br />

mining industry with the objectives <strong>of</strong> understanding platinum group metals production trends,<br />

platinum price trends, challenges, drivers and restraints facing the industry. Attached below is a<br />

Table <strong>of</strong> Contents highlighting the topics covered in this research study.<br />

Executive Summary<br />

Introduction<br />

Research Overview<br />

Market Overview<br />

Key Findings<br />

<strong>Strategic</strong> Conclusions<br />

Research Scope & Definitions<br />

Research Scope<br />

Research Definitions<br />

Research Methodology<br />

Methodology<br />

Research Aim & Objectives<br />

Research Aim<br />

Research Objectives<br />

6


Research Deliverables (Contd…)<br />

Table <strong>of</strong> Contents (Contd…)<br />

Global <strong>Platinum</strong> <strong>Mining</strong> Industry<br />

Global <strong>Platinum</strong> Market Dynamics<br />

Global <strong>Platinum</strong> Demand and Supply Flows<br />

Global <strong>Platinum</strong> Demand<br />

Industry Challenges<br />

Market Drivers<br />

Global Palladium Demand<br />

Global Rhodium Demand<br />

Global <strong>Platinum</strong> Supply<br />

Market Restraints<br />

<strong>South</strong> Africa’s <strong>Platinum</strong> Production Forecasts<br />

<strong>Platinum</strong> Price Forecasts<br />

<strong>South</strong> Africa’s <strong>Platinum</strong> <strong>Mining</strong> Industry<br />

7


Research Deliverables (Contd…)<br />

Table <strong>of</strong> Contents (Contd…)<br />

Competitive Landscape<br />

About Frost & Sullivan<br />

Industry Structure<br />

Company Pr<strong>of</strong>iles<br />

List <strong>of</strong> Key Industry Participants<br />

oWho is Frost & Sullivan<br />

What Makes us Unique<br />

T.E.A.M Methodology<br />

Global Perspective<br />

8


Benefits <strong>of</strong> Research<br />

Provides market sizes <strong>of</strong> key<br />

industry participants<br />

Identification and analysis<br />

<strong>of</strong> global platinum group<br />

metals production trends<br />

8<br />

1<br />

2<br />

Detailed and comprehensive<br />

competitive analysis <strong>of</strong> <strong>South</strong><br />

Africa’s platinum mining<br />

industry<br />

Identification <strong>of</strong> <strong>South</strong><br />

Africa’s position in the<br />

global platinum mining<br />

industry<br />

7<br />

Research<br />

Benefits<br />

3<br />

Analysis <strong>of</strong> platinum price<br />

trends and forecasts<br />

Identifies key industries<br />

challenges and market<br />

dynamics<br />

6<br />

5<br />

4<br />

<strong>Strategic</strong> conclusions<br />

Provides <strong>South</strong> Africa’s<br />

platinum production<br />

forecasts between 2009 and<br />

2014<br />

9


Who will benefit<br />

Who?<br />

How?<br />

Current Market<br />

Participants<br />

•Find out how you compare to the competition<br />

•Determine and exploit new market share<br />

opportunities<br />

New Entrants<br />

•Analyse challenges associated with the industry<br />

•Position yourself to capitalise on the market’s<br />

unmet needs<br />

Investment<br />

Community<br />

•Analyse long-term strategies <strong>of</strong> participating<br />

companies<br />

•Determine which participants will outperform the<br />

competition<br />

•Assess attractiveness <strong>of</strong> investing in the platinum<br />

group metals mining industry<br />

10


Frost & Sullivan contacts<br />

Phil Howarth<br />

Operations Director<br />

Frost & Sullivan Africa<br />

+27 21 680 3269<br />

phil.howarth@frost.com<br />

Guillaume de Bassompierre<br />

Account Manager<br />

Frost & Sullivan<br />

+27 21 680 3286<br />

+27 71 684 0011<br />

guillaume.bassompierre@frost.com<br />

David Winter<br />

Programme Manager<br />

Frost & Sullivan Africa<br />

+27 21 680 3275<br />

David.winter@frost.com<br />

11

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