The platinum supply equation - refrigeration key to ongoing supply levels As platinum mines get deeper they need to refrigerate intake air to maintain reasonable working conditions and this requires a big increase in power – which may just not be available in the short to medium term.
Author: Lawrence Williams Posted: Friday , 23 May 2008
LONDON -
Perhaps slightly glossed over in the various reports and comments on the short to medium term future of the platinum price, and the power problems being faced by the South African mines which produce the vast bulk of the world's new mined supply is that of refrigeration. No this is not some esoteric new use for platinum catalysts, but an absolute necessity for the deeper platinum mining operations - and the world's two largest producers, Anglo Platinum and Implats are both fast approaching mining depths where refrigeration of the intake air into the mines will be vital to maintain safe working conditions and productivity. Without refrigeration working conditions become too h0t for miners to maintan concentration over a full shift and there is the attendant risk of death from heatstroke.
As an example of the amount of power needed for this, Northam Platinum, which is already deep enough to require intake air refrigeration, uses around 40 percent of its power allocation just to keep the refrigeration systems running. If Eskom, South Africa's power utility, remains insistent on restricting mining operations to 90 or 95 percent of current power levels, then Angloplats and Implats will both be unable to run their own refrigeration plants on grid power and may thus be unable to mine the deeper levels now being accessed, without some form of additional power. If the Eskom power crisis continues to 2015 or beyond, as some observers feel may well be likely then the platinum majors will either need to commission expensive to run alternate power supplies, or cut production.
PLA Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
