Platinum Group Elements

Content maintained by Yanis Miezitis

• Platinum Group Elements
• Resources
• Accessible EDR
• JORC Reserves
• Exploration
• Production
• World Ranking
• Industry Developments

The platinum group elements (PGE) comprise platinum (Pt), palladium (Pd), iridium (Ir), osmium (Os), rhodium (Rh) and ruthenium (Ru). The elements of most commercial significance are platinum, palladium and, to a lesser degree, rhodium. The PGE properties of commercial importance are their resistance to corrosion and oxidation, high-melting points, electrical conductivity and catalytic activity in the chemical, electrical, electronic, glass and motor vehicle industries. The emerging commercial importance of PGEs is in applications associated with the motor vehicle industry resulting from increasing global emission controls, development of lead-free petrol and efforts to improve fuel efficiency. Other applications include the use of platinum-rhodium alloys to oxidise ammonia to nitric acid in the production of fertilisers, while platinum is used extensively in jewellery.

According to figures published by Matthey (2011)¹, the main demand for platinum in 2010 was autocatalyst applications which increased by 43% to 3.13 million ounces. The gross industrial demand for platinum increased by 48% to 1.69 million ounces, but demand in the jewellery section fell by 14% to 2.42 million ounces. Gross demand for palladium increased by 23% to 9.63 million ounces in 2010, its highest ever level. Gross demand for palladium from the autocatalyst sector in 2010 increased by 35% to 5.45 million ounces as economic recovery drove vehicle production higher in all regions.

Australia's Economic Demonstrated Resources (EDR) of PGEs decreased from 5.2 tonnes to 4.4 tonnes in 2010 as a result of reclassification of resources.

Western Australia (WA) and the Northern Territory (NT) hold all of Australia's resources of EDR. However the EDR of PGEs in individual deposits within State jurisdictions is often unrecorded resulting in the overall distribution of the PGE EDR being unknown.

In 2010, the Paramarginal Resources increased from 132.3 tonnes to 132.6 tonnes while the Submarginal Resources remained the same at 35.3 tonnes. The Paramarginal Resources are shared mostly between WA (87%) and New South Wales (NSW) (10%), while most of the Submarginal Resources are in WA.

Inferred Resources increased by 200 kilograms (kg) to 145.5 tonnes with WA having most of these resources (86.6%) followed by NSW (11%).

Total Identified Resources of PGEs, which represents EDR plus Paramarginal, Submarginal and Inferred Resources, total about 318 tonnes. Of this amount, deposits which have only PGE resources account for about 60% of the total resources, although all of Australia's production is as by-product from PGE resources associated with nickel sulphide deposits in WA.

Currently, 120kg of the published PGE EDR is accessible for mining while the balance of 4.3 tonnes occurs within national parks. The reason for the low Accessible EDR figure for PGEs is that PGE resources are generally not reported by companies.

About 3% of Accessible Economic Demonstrated Resources (AEDR) of PGEs comprise Joint Ore Reserve Committee (JORC) Code reserve. The remaining 97% of EDR represents resources assessed by Geoscience Australia from the Measured and Indicated categories of industry reported mineral resources, as defined under the JORC Code and other classification systems used by companies not listed on the Australian Stock Exchange. The reason for the low reserve figure is that many companies don't report the PGE content in nickel reserves.

Expenditure for PGEs is not reported separately and much of the PGE resources are associated with nickel deposits. Areas of activity in 2010 where PGEs were a significant component of exploration targets included the WA regions in the eastern goldfields of the Yilgarn, the East Kimberley and West Pilbara as well as the West Musgrave in the border region of WA, the NT and South Australia (SA).

Australia's PGE production (Pd and Pt) in 2010 was very minor by world standards amounting to 781kg. This production is exclusively from nickel sulphide deposits hosted by Archean komatiitic rocks in the Yilgarn Craton of WA.

Based on figures published by the United States Geological Survey and the latest Australian resource figures, world economic resources of PGEs was unchanged at 66 000 tonnes in 2010. Australia's share of world EDR was less than 0.1% in 2010. South Africa has most of the world's EDR with 63 000 tonnes (95%), followed by Russia with 1100 tonnes (1.7%), and the USA with 900 tonnes (1.4%).

The world's supply of PGEs in 2010 was dominated by South Africa (75% Pt, 37% Pd) and Russia (13% Pt, 44% Pd), with minor contributions from Canada, Zimbabwe, the USA and Colombia. Johnson Matthey (2011) stated that the global supply of PGEs was 7.29 million ounces of palladium and 6.06 million ounces of platinum in 2010.

About two thirds of Australia's Identified Resources of PGE are in the following deposits in which PGE is the major commodity

• Munni Munni, WA – published Measured, Indicated and Inferred Resources of 23.6 million tonnes (Mt) at 1.5 grams per tonne (g/t) Pd, 1.1g/t Pt, 0.1g/t Rh, 0.2g/t gold (Au), 0.09% nickel (Ni), and 0.15% copper (Cu). In June 2010, Platina Resources Limited reported that it was reviewing its Munni Munni deposit to identify a coherent zone of higher grade mineralisation within the current Munni Munni resource estimate and to include copper and nickel, which previously had not been assessed with the PGE content in the mineralised zones. Investigations were carried out into the potential open cut component of the Munni Munni deposit.
• Panton, WA – 14.3Mt at 2.19g/t Pt, 2.39g/t Pd, 0.31g/t Au, 0.27% Ni, and 0.07% Cu. Platinum Australia Limited² reported that in view of the high prices for platinum and palladium, it had engaged consultants to review the design, capital and operating cost of the open pit and underground mine plan.
• Fifield, NSW – Platinum Australia Limited³ announced Indicated and Inferred Resources totalling 13.1Mt at 0.7g/t Pt for its Owendale North, Cincinnati and Milverton deposits at Fifield. The company also published a scandium (Sc) resource of 4.8Mt at 344g/t Sc. Historical production from Fifield amounted to about 640kg of PGEs.
• Weld Range - Parks Reef PGE (with minor Au) deposit, WA – a published Inferred Resource amounted to 14.76Mt at 1.1g/t Pt+Pd+Au which occurs in a truncated lateritic profile overlying low-grade primary PGE mineralisation in ultramafic rocks⁴. The Weld Range PGE deposit is adjacent to the very large Weld Range lateritic nickel-cobalt deposit which has an Inferred Resource of 330Mt at 0.75% Ni and 0.06% Co. Dragon Mining Limited announced in September 2009 that its wholly owned subsidiary had entered into an agreement to acquire the Weld Range tenements covering the lateritic nickel-cobalt deposit and the separate PGE dominant deposit. The Weld Range lateritic nickel-cobalt deposit has recently attracted attention as a chromium resource with a published Inferred Resource of 63.5Mt at 5.2% chromium (Cr), 38% iron and 0.38% Ni at a cut-off grade of 4% Cr. A scoping study was released by Weld Range Metals Ltd in August 2010 which concluded that Stage 1 of the project is technically and economically feasible using processing equipment and technology currently used by the steel industry. The company also stated it was planning to proceed with a definitive feasibility study.

PGE resources are present also in deposits where other commodities are dominant, mainly komatiitic nickel-cobalt sulphide deposits as well as lateritic nickel deposits. They include:

• Radio Hill nickel mine, WA – Fox Resources Ltd reported that remaining Indicated and Inferred Resources of palladium amounted to 1.275Mt at 0.493g/t. Details are not available on production of palladium in 2009. In mid 2010 the company announced updated Indicated and Inferred Resources of 4.22Mt at 0.65% Ni and 0.76% Cu for its Radio Hill mine. An Indicated and Inferred Resource of 5.78Mt at 0.54% Ni and 0.67% Cu was reported also for the nearby Sholl B2 deposit, but no details were given for palladium content. The mine is on care and maintenance while the company is investigating options for heap leaching nickel and copper. On 15 November 2011 the company announced it has signed a non-binding Memorandum of Understanding (MOU) with Jiangxi Jiangli Sci-Tech Co. Ltd regarding the development of the Radio Hill and Sholl nickel-copper bacterial heap leaching project in the Pilbara region of WA. Under the proposed agreement contemplated by the MOU, Jiangli, a Chinese cooperative, is to provide $30 million to Fox for the initial phase of the project and other associated project activities required at Radio Hill Mine. As part of the agreement, Fox will provide Jiangli with 100% of the nickel and copper sulphide concentrates produced from its Radio Hill and Sholl projects over their initial nine year mine life.
• Waterloo nickel mine, WA – the resources for this deposit were reported last in 2004 as 653 000 tonnes at 2.795% Ni, 0.194% Cu and 0.858g/t PGE. Recorded production amounts to 185 000 tonnes at 2.76% Ni in 2007 and 57 818 tonnes Ni in 2006 but there are no details on production of PGEs. The mine's owner, OJSC MMC Norilsk Nickel, placed the mine on care and maintenance in November 2008 because of prevailing low nickel prices and reduced world demand.
• Nyngan lateritic nickel-cobalt-scandium-platinum deposit, NSW – Jervois Mining Limited reported in June 2005, a resource of 16Mt at 0.87% Ni, 0.06% Co of which there is 3Mt at 290 parts per million (ppm) scandium (Sc) and 0.22g/t Pt. The scandium-rich portion of this deposit was updated in June 2009 as Measured Resources of 2.718Mt at 274ppm Sc and Indicated Resources of 9.294Mt at 258ppm Sc.
• The Horn nickel sulphide deposit, WA – in April 2008, Breakaway Resources Limited reported a small Inferred Resource for The Horn nickel deposit of 600 000 tonnes at 1.39% Ni, 0.3% Cu and 0.5g/t Pd+Pt. In early 2009, the company reported that massive and matrix nickel sulphide mineralisation at The Horn deposit had been drilled over a 500 metre (m) strike length and remained open along strike. Geological mapping undertaken during the March quarter of 2009 confirmed the presence of nickeliferous gossans within a structurally bound, high magnesium oxide (MgO) ultramafic unit immediately south of the known mineralisation. The Revolution prospect⁵, located immediately north of Breakaway's The Horn Nickel deposit includes PGE bearing disseminated nickel mineralisation (12m at 0.96% Ni, 311ppm Cu and 424 parts per billion (ppb) Pt + Pd from 192m and 4m at 1.14%Ni, 1003ppm Cu and 749ppb Pt + Pd from 209m in drill hole LWDD0809).
• Yarrawindah Brook, WA – an Inferred Resource of 2.9Mt at 0.79g/t PGE was announced by Washington Resources Ltd in March 2006.

Other PGE deposits with recorded resources which have had historic interest but did not record exploration or assessment activity in 2010 include:

• Nebo-Babel nickel-copper-PGE deposit, WA – a news article in The West Australian newspaper, dated 10 February 2007 reported that the Nebo-Babel nickel-copper-PGE deposit, discovered by Western Mining Corporation in mid-2000 has a preliminary resource of 393Mt grading 0.3% Ni, 0.3% Cu and 0.18g/t PGE. The deposit was later acquired by BHP Billiton Limited as a result of its takeover of Western Mining Corporation in mid-2005.
• Syerston lateritic nickel-cobalt-platinum deposit, NSW – in April 2000, Black Range NL announced a total platinum resource of Measured, Indicated and Inferred Resources of 108.3Mt at 0.21g/t Pt which occurs partly within the Syerston nickel-cobalt deposit.
• Coronation Hill, Kakadu National Park, NT, – the Coronation Hill deposit has an Indicated and Inferred Resource of 6.69Mt at 6.42g/t Au, 1.01g/t Pd and 0.3g/t Pt which was reported in 1990. The deposit occurs within the Kakadu National Park and is inaccessible for mining.
• Adamsfield⁶, 70 kilometres west of Hobart, Tasmania, – it is located within the Franklin-Gordon Wild Rivers National Park. A small near surface Inferred Resource amounts to 14 500 tonnes of ore at 6.5g/t iridium (Ir), 7.3g/t osmium (Os) and 0.13g/t Pt (using a cut off grade of 1g/tOs+Ir).
• Thomson River, Victoria – in 1981 CRA Exploration Pty Ltd estimated resources as 40 000 tonnes averaging 3.2g/t Pt, 3.6g/t Pd, 2.7% Cu, 9.5g/t Ag and 2.5g/t Au. Intermittent mining since the discovery of the deposit about 1864 produced around 13 200 tonnes of ore, from which only about 10kg of platinum was extracted.

1. Mathey, J. 2011 Platinum 2011. Johnson Matthey Public Limited Company. Precious Metals Marketing. http://www.platinum.matthey.com/uploaded_files/PT_2011/complete_publication.pdf
2. Platinum Australia Limited, 2011. Platinum Australia operations update. 21 June 2011, 10 pp.
3. Platinum Australia Limited, 2011. Platinum and scandium resource estimate for Owendale project, NSW, Australia. Announcement to the Australian Securities Exchange, 7 November 2011.10 pp.
4. Parks, J, 1998. Weld Range platinum group element deposit. In: Geology of Australian and Papua New Guinean Mineral Deposits (eds: Berkman, D.A. & Mackenzie, D.H.), The Australasian Institute of Mining and Metallurgy: Melbourne, 279–286.
5. Breakaway Resources Limited, 2011. Activity report for the quarter ended 31 December 2010. ASX Release 28 January 2011, 12 pp.
6. Shree Minerals Limited, 2009. Shree Minerals Limited Prospectus. 160 pp.