ANNUAL REPORT 2001 - Anglo Platinum

Platinum Market Review (continued)MARKET SUPPLY/DEMANDNet demand for platinumis estimated to havegrown 5% in 2001 toa record 5,94 millionounces.MARKET SUPPLY AND DEMANDPlatinum’s eminence amongst preciousmetals can be attributed to its beauty, rarityand unique physical and chemicalproperties. Platinum’s aesthetics andstrength have underpinned the growth inconsumer demand for platinum jewellerywhilst its unsurpassed catalytic properties,resistance to corrosion and high meltingpoint secure its ongoing role in a myriad ofindustrial applications.The jewellery and investment markets arecreated markets. Industrial applications, onthe other hand are driven by technology andlegislation. Constant promotion anddevelopment is thus required to ensure thatplatinum maintains its position as the mostprecious and desired metal for jewellery.Technological development continues todrive industrial demand and ongoingresearch into new applications will fuel thegrowth of this sector in the future.Platinum supply2001South Africa 73%Russia 19%North America 6%Other 2%Demand for platinum has grown by anaverage annual rate of around 6% since 1950and the encouragement of a greater degree ofgeographic and application diversity hasresulted in more stable market conditions.In the 1950s most platinum was consumedby industrial applications, especiallypetroleum refining. A buoyant platinumjewellery market dissipated during WorldWar2 as governments requisitioned platinumPlatinum demand byapplication 2001Jewellery 42%Autocatalyst 31%Industrial 26%Investment 1%Platinum demand byregion 2001Japan 20%North America 20%Western Europe 24%Rest of western world 36%to secure its availability for the war effort.After the war, platinum jewellery demand waslargely dormant until the 1960s whendemand resurfaced in Japan. By 1975, Japanwas the largest market for platinum,accounting for over 50% of total offtake, withthe majority destined for jewellery. In the1970s the implementation of emissionslegislation for vehicles presented a newopportunity and by the end of the 1970s this18