Rhodium

Lonmin PLC (LMI.LN), the world's third largest primary platinum producer, Thursday said it expects to meet its annual platinum sales target, provided there are no work stoppages, and raised its annual unit cost guidance to reflect reduced output in previous quarters. The U.K.-listed, South African miner expects to sell 720,000 troy ounces of platinum in the financial year ending Sept. 30 and expects annual unit costs to rise 11%, up from a previously forecast 8%, due to production setbacks stemming from industrial action and six fatalities during the first six months of the financial year.

Thunder Bay-based Zenyatta Ventures has ended its dispute with Constance Lake First Nation after the leadership of the 1,470-strong community decided to no longer pursue a motion of injunction against the junior explorer in exchange for better co-operation and preferential job opportunities. Zenyatta can now advance its Albany project south of the so-called Ring of Fire in the James Bay lowlands where it is exploring for nickel and platinum group metals with a purported value in excess of $1 billion.

In 2001 palladium reached $1,080/oz when gold was only $300/oz and platinum $715/oz. Three factors will help fuel palladium to surpass its 2001 high and well beyond says Market Oracle: Chinese auto production is expected to go from 18 million units in 2010 to a staggering 30 million vehicles by 2020. A vehicle's catalytic converter requires about 1/20th of a troy ounce of palladium and/or platinum and since platinum costs 124% more than palladium ($1,735 vs $776) it is reasonable to assume automobile manufactures will elect to use cheaper palladium. Secondly the looming palladium supply deficit and thirdly the exemplary success of pure palladium ETFs which already have over $1 billion in assets representing roughly 1.3 million oz of palladium taken off the market.

Norilsk Nickel, world number one nickel and palladium producer and Russia's biggest miner, announced on Friday it is restarting operations at its Maggie Hays mine near Lake Johnston in West Australia. Norilsk mothballed Maggie Hays bought from BHP and the other Australian operations it acquired in 2007 two years later as the financial crisis cut demand. Stainless steel production accounts for around two-thirds of nickel consumption.

Shares in the platinum and precious metals mining company rose as much as 6.4% at the start of the session to an intraday high of $4.98 before the broad market soured during Fed Chairman Bernanke’s second day of testimony on Capitol Hill.

Neighbour South Africa's influential Business Day reports as Zimbabwe’s shaky unity government inches ahead with extensive electoral reforms ahead of fresh elections now expected next year, the prospect of the country’s army seizing power looms large. In recent weeks, the military’s top brass has taken on a visible role in the country’s political affairs and has been brazenly opposed to security sector reforms. The military seized control of Zimbabwe's rich diamond fields in Chiadzwa in 2006 and most observers believe an international ban on these gems are being widely flouted.

Strikes are looming in South Africa's gold and platinum sectors which could threaten global supplies at a time when commodity prices are red hot. South Africa's powerful National Union of Mineworkers (NUM) said on Wednesday wage talks with the country's main gold miners were deadlocked and it was preparing for a strike.

Stillwater Mining, the only platinum and palladium producer in the U.S., announced on Monday that it will acquire Peregrine Metals for US$487.1 million. Peregrine Metals is a publicly-traded exploration and development company with gold and copper projects in Argentina and Peru. The company is listed on the Toronto Stock Exchange.

South Africa’s Pilanesberg Platinum announced on Friday a labour dispute has been settled and mining operations will resume next week after a two-week shutdown after employees of a contractor disrupted operations through intimidation of supervisors and damage to property and equipment. The share traded up almost 2% in afternoon trade but the company worth some $510m has lost more than a tenth of its value on the Toronto bourse since halting operations and is down close to 50% over the last twelve months.