A global shortfall in the supply of platinum is likely to drive up prices, according to a new report, adding to concerns that a proposal for miner Anglo American to sell its South African interests in the industrial metal could mean it misses out on a revival in the sector.
A proposed £30bn-plus takeover by BHP of its rival includes spinning off the Anglo American Platinum unit through a stock market listing. Anglo rejected BHP’s revised offer on Monday.
But according to a report on Monday from industry body the World Platinum Investment Council, global demand for the metal — which is used in the production of catalytic converters that help cut harmful emissions — will exceed supply by 476,000 ounces this year, equivalent to 6 per cent of annual demand.