Rhodium

FT reports in 2010 the market loved palladium. It was the best-performing precious metal. But, as Barclays Capital points out in a note, 2011 has seen palladium fall off its pedestal. At about $600 an ounce it has shed 25% since the start of the year. Industrial demand – the primary factor determining prices – for platinum and palladium took a severe knock from the Japanese earthquake and tsunami disaster in March but supply disruptions and falling grades in South Africa, the world’s number one miner of the two metals, and ongoing political turmoil in Zimbabwe, the country with the second largest deposits, could provide a floor for the price.

A mining contractor at Aquarius Platinum's Everest Mine is on strike. The strike has been called by the Association of Mining and Construction Unions, which is demanding full organizational rights under the South African Labour Relations Act. The contractors on strike are employees of Murray & Roberts Cementation. "This is a technical dispute between AMCU and MRC, and no demands are being made by AMCU of Aquarius or its subsidiaries," said Aquarius Platinum (ASX:AQP) in a dispute.

Gold for December delivery traded up $37.30, or 2.3%, at $1,673.10 an ounce on the New York Mercantile Exchange in early afternoon trade Monday, after climbing more than $40 earlier to touch an intraday high of $1,676.70. Gold's gains come amid strong buying during China's Golden Week despite the fact that buyers have to contend with bullion that is $300/oz more expensive than last year. Traders reported that the price of gold has been moving up and down in sync with the S&P 500 in the last four sessions, while the safe-haven buying that spurred the metal's three-year rally was largely absent. Other precious metals also benefited from a near 2% drop in the dollar index.

News reports on Saturday say Rio Tinto's Zimbabwe subsidiary Murowa Diamonds has ceded 51% of its equity to comply with a new law that requires Zimbabweans to own the majority of foreign companies. Rio Tinto says on its website it has completed a feasibility study and received environmental go-ahead to expand Murowa production 8-fold at a cost of $200 million. Saturday's report cast serious doubts on whether the investment, which requires foreign capital, would now be made. It appeared in recent weeks as if Zimbabwe was soft-pedalling the indigenization laws, but Rio Tinto's capitulation has now put pressure on Impala Platinum, struggling to hold onto its $20 billion worth of reserves in the country.

Canada's North American Palladium said it plans to expand its flagship mine in Northern Ontario at a cost of around $75 million for the first phase of the project. Phase 1 of the Lac des Iles expansion should be completed in the fourth quarter of next year when the shaft will begin operating at a rate of 3,500 tonnes per day. The mine is located northwest of the city of Thunder Bay, and its primary deposits are palladium with some platinum, gold, nickel, and copper by-products. The company, which also operates two gold mines in Quebec, received a bump at the opening of trade in New York with the stock up 3.3% in a softer broader market.

Stillwater Mining Company on Monday became one of the first miners to find funding drying up following the punishment meted out to precious metals recently, when it announced after market close that it is withdrawing its proposed offering of senior notes due to the "dramatic deterioration of the capital markets during the past week." Stillwater said it still has enough funds for the $165 million net cash portion of the Peregrine transaction. The counter shed just over 1% of its value on the NYSE on Monday on a generally positive day for the markets, but is down 35% since last Monday. Stillwater is the only US producer of palladium and platinum and is the largest primary producer of platinum group metals outside of South Africa and Russia. Platinum was trading at $1,565/oz on Monday, down from a year-high of $1,916/oz.

India Express said that Veolia Environment plans to process street sweepings in London to extract platinum group metals. Image from Ponchitos

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2011) - Prophecy Platinum Corp. ("Prophecy Platinum" or the "Company") (TSX VENTURE:NKL)(OTCQX:PNIKF)(FRANKFURT:P94P) reports that as a result of a review by the British Columbia Securities Commission (BCSC), it is issuing the following news release to clarify, retract, restate and update certain of its previously issued technical reports, investor relations presentations and disclosures on its website www.prophecyplat.com.

The British Geological Survey (BGS) on Wednesday published the latest list of the 52 elements, minerals and metals most at risk of supply disruption because global production is concentrated in a few countries, many with unstable governments. Surprisingly rare earths used in green technology and defence do not top the list but comes in at number five. Antimony, extracted mainly from stibnite (pictured), widely used for fireproofing is most at risk. The platinum group metals (auto catalysts) hold the second spot while niobium used in touch screens and scanners and tungsten for cutting tools are also at risk of supply disruption as a result of increased competition among the world's growing economies, political instability, resource nationalism, along with events such as strikes and accidents. China is the number one producer of 50% of the 52 chemicals on the list and produces 75% of the world's antimony.