Entire Annual Report - Anglo American Platinum

Fuel cell stackDomestic sales of motor vehicles in Japan rose by 3% to 4,26 million units in 2000. Signs of an improvement in theeconomy helped to boost sales and it is hoped that the growth of demand evident in the last three months of 2000 willcontinue in 2001.More stringent legislation covering vehicle emissions came into effect in Japan from October 2000. These limits currentlyapply to all domestically produced models and will apply to imported vehicles from 2002.Net demand for platinum for autocatalyst fabrication in the rest of the world is estimated to have increased in 2000 by14% to 285 000 ounces. The increase emanated largely from Korea, Brazil and Argentina.In the past, PGM demand for autocatalysts from South East Asia was largely for vehicles for export. A tightening ofemissions legislation in Korea, coupled with an increase in production for both domestic and export markets, increasedthat country’s platinum requirements last year. In January 2000, Korean LEV standards were implemented and will bephased in over the period to 2003.In India, emissions standards equivalent to Euro I have been applied nation-wide to new cars. Since April 2000, carsregistered in Delhi have had to comply with more stringent emissions levels, namely Bharat Stage II. In August 2000these standards were applied in eight more cities, and the rest of the country is expected to comply soon.Emissions legislation equivalent to Euro I has been in place in China from2000, and a tightening of the legislation is expected from 2005. Although thepresent vehicle market in China is relatively small at around 625 000 units perannum, demand is expected to grow rapidly in tandem with economic growth.In South America, strong vehicle production in Brazil and Argentinais expected to have resulted in an increase in platinumdemand from these two countries in 2000, which willoffset a decline in estimated demand from Mexico.Production of vehicles in Mexico grew by 27% in 2000on account of a strong increase in sales in both thedomestic and export markets. However, more than75% of vehicles produced in Mexico are destinedfor North America, and are fitted with palladiumrichcatalysts to meet US LEV legislation. Themove towards palladium technology was at theexpense of platinum, with a consequentdecrease in offtake of the latter.33