Platinum

Rhodium will climb as much as 35% to $2,800 an ounce by the end of the year on increased carmaker demand and production difficulties for mining companies in South Africa where the metal is produced as a byproduct of platinum mining, according to a report by Standard Bank released on Monday. Mainly used in emissions reducing converters and in the chemical and glass industries rhodium is down 14% this year after three annual surpluses but jumped 21% in the week after Deutsche Bank introduced a physically backed exchange-traded product at the end of May. The price of rhodium hit an all-time record high above $10,000 in 2008.

South African mining output rebounded strongly in April, rising by 12.4% year-on-year, after contracting 1.4% in the previous month, a report by Statistics South Africa showed on Thursday. Year-to-date production increased by 5.2%, on the back of surging output of nickel, manganese, platinum group metals and copper but gold production continued to lag, only managing a 1.5% increase. Analysts warned that the outlook for the rest of year was clouded by scheduled wage negotiations across the industry that could lead to strikes and a strong currency which hampers competitiveness.

Profit margins for the world’s top 40 mining companies are below the historical peaks of 2006 and 2007 as higher costs outweigh […]

A Russian Finance Ministry official has reportedly said that the State repository has sufficient palladium stocks to continue to export in 2012, while it is also looking to upgrade some of its existing material (Gokhran has sufficient palladium to continue exports in 2012 - report). In their authoritative reviews released last month, both Johnson Matthey and GFMS addressed this issue and the two houses are of similar views with respect to the outlook on this issue.

Stillwater Mining Company (NYSE: SWC), commenting on today's significant strengthening in palladium and platinum prices, indicated that the market outlook for increasing demand and constrained production underlies the significant move in metal prices today.

BusinessDay reports on Friday the global platinum surplus may jump eightfold to as much as five tons after Japan’s worst earthquake slashed car production, reducing the country’s demand for the metal used in cars’ emission systems to the lowest level in 28 years. Earlier Mining Weekly reported that world number two platinum producer Impala Platinum has shelved plans to increase production at its underperforming 73%-owned Marula mine leading to lay-offs at the company’s largest development project in South Africa.

A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces." The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."

Fast-growing Danish jewellery maker Pandora (PNDORA.CO: Quote) missed forecasts with a 55 percent rise in first-quarter profit as price rises failed to […]

Miner Lonmin LMIJ.J (LMI.L: Quote) said on Friday that there was unspecified industrial action taking place at its Marikana operations in South Africa by members of the National Union of Mineworkers (NUM). "Lonmin announced today that it is currently experiencing unprotected industrial action by NUM members at the Karee operations of its Marikana operations. As a result, production at Karee has been disrupted since the night shift of Tuesday 17th May," it said in a statement.