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 Pt, Pd and to a lesser degree, Rh. The properties of PGEs 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 automotive industries. The emerging commercial importance of PGEs is in the applications related to the motor vehicle industry as a result of 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 also used extensively in jewellery.

According to figures published by Matthey (2008)⁽¹⁾, the main demand for platinum in 2007 was autocatalyst applications (60%) and jewellery manufacture (23%). The main demand for palladium was also in autocatalyst (65%), electronic (19%) and jewellery production (11%).

Australia's Economic Demonstrated Resources (EDR) of PGEs decreased by 1% from 19.1 tonnes to 18.9 tonnes in 2008.

Western Australia (WA), New South Wales (NSW) and the Northern Territory (NT) hold all of Australia's resources of EDR. However the EDR of PGEs in individual deposits is often unrecorded so that the full distribution of the PGE EDR between the states is unknown.

In 2008, the Paramarginal Resources decreased from 119 tonnes to 118.5 tonnes while the Submarginal Resources remained the same at 35.3 tonnes. Virtually all of the Paramarginal Resources, 99.8%, and all of the Submarginal Resources are in WA.

Inferred Resources increased during 2008 from 135 tonnes to 145.3 tonnes. Western Australia had most of these resources at 86.6%, NSW with 11% and NT with 2.3%.

Total Identified Resources of PGEs, that is EDR plus Paramarginal, Submarginal and Inferred, total about 318 tonnes. Of this amount, deposits which have only PGE resources amount to about 205 tonnes or around 64%, although all of Australia's production is as by-product from PGE resources associated with nickel sulphide deposits in WA.

Currently, 14.6 tonnes of the PGE EDR is accessible for mining while the balance of 4.3 tonnes occurs within national parks.

About 1% of Accessible Economic Demonstrated Resources (AEDR) of PGEs comprise Joint Ore Reserve Committee (JORC) Code reserve. The remaining 99% of EDR represents resources assessed by Geoscience Australia from the Measured and Indicated categories of industry reported mineral resources, as defined under the 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 their nickel reserves.

Expenditure for PGEs is not reported separately and much of the PGE resources are associated with nickel deposits. Areas of activity in 2008 where PGEs were a significant component of exploration targets included the West Musgrave in the WA, NT and SA border region of central Australia along with the WA regions in the eastern goldfields of the Yilgarn, the East Kimberley and West Pilbara.

All of Australia's PGE (palladium (Pd) + platinum (Pt)) production in 2008 was as by-product of nickel mining in WA and amounted to 0.71 tonne, as reported by the WA Department of Mines and Petroleum at a value of $8.75 million. There is no publicly available record of PGE production from individual mines. Australia was a very minor producer compared with South Africa with 233 tonnes Pd+Pt (57.4%), Russia 103 tonnes (23.4%) and Canada 19.7 tonnes at (4.9%).

Based on figures published by the United States Geological Survey (USGS) and the latest Australian resource figures, world EDR of PGE was unchanged at 71 000 tonnes in 2008. Australia's share of world EDR was 0.03% in 2008. South Africa has by far the largest share of the world's EDR with 63 000 tonnes (88.7%) followed by Russia with 6200 tonnes and USA with 900 tonnes (1.3%).

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, 1.1 g/t Pt, 0.1 g/t Rh, 0.2 g/t gold (Au), 0.09% nickel (Ni), and 0.15% copper (Cu). In June 2009, Platina Resources Ltd reported that it was reviewing its Munni Munni project with a focus of a smaller project with scope for selective mining and recent metallurgical advances suited for small-scale processing.
• Panton, WA - 14.3 million tonnes (Mt) at 2.19 g/t Pt, 2.39 g/t Pd, 0.31 g/t Au, 0.27% Ni, and 0.07% Cu. Platinum Australia Ltd reported in its 2008 Annual Report that its Panton project is on hold pending improvement in PGE prices.
• Fifield, NSW - published Inferred Resources amount to 10.2 Mt at 0.61 g/t Pt, 2 Mt at 0.18% cobalt (Co) and 0.35% Ni. Historical production from this deposit amounted to about 640 kilograms (kg) of PGEs. The deposit is held by Platina Resources Ltd - but no significant activities were reported in regard to PGEs in 2008.
• Weld Range - Parks Reef PGE (with minor Au) deposit⁽²⁾, WA - a published Inferred Resource amounted to 14.76 Mt at 1.1 g/t Pt+Pd+Au which occurs in a truncated lateritic profile overlying low-grade primary PGE mineralisation in ultramafic rocks The Weld Range PGE deposit is near the very large Weld Range lateritic nickel-cobalt deposit which has an Inferred Resource of 330 Mt at 0.75% Ni and 0.06% Co. Dragon Mining Ltd announced in September 2009 that its wholly owned subsidiary had entered into an agreement to acquire 100% interest in the Weld Range tenements covering the lateritic nickel-cobalt deposit and the separate PGE dominant deposit.

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 1.275 Mt at 0.493 g/t. Details are not available on production of palladium in 2008. Fox Resources Ltd updated the nickel and copper resources for the Radio Hill deposit in September 2009, but no details were given for palladium content. The mine is currently on care and maintenance.
• Waterloo nickel mine, WA - the resources for this deposit were last reported in 2004 as 653 000 tonnes at 2.795% Ni, 0.194% Cu and 0.858 g/t PGE. Recorded production amounts to 185 000 tonnes at 2.76% Ni in 2007 and 57 818 tonnes Ni in 2006 with no details given 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 Ltd reported in June 2005, a resource of 16 Mt at 0.87% Ni, 0.06% Co of which there is 3 Mt at 290 parts per million (ppm) scandium (Sc) and 0.22 g/t Pt. The scandium-rich portion of this deposit was updated in June 2009 as Measured Resources of 2.718 Mt at 274 ppm Sc and Indicated Resources of 9.294 Mt at 258 ppm Sc.
• Wildara nickel sulphide deposit, WA - the resources for this deposit were announced by Breakaway Resources Ltd in April 2008 as 600 000 tonnes at 1.39% Ni, 0.3% Cu and 0.5g/t PGE.
• The Horn nickel sulphide deposit, WA - in April 2008, Breakaway Resources Ltd reported a small Inferred Resource for their Horn nickel deposit of 600 000 tonnes at 1.39% Ni, 0.3% Cu and 0.5 g/t Pd+Pt. In early 2009, Breakaway Resources Ltd reported that massive and matrix nickel sulphide mineralisation at the Horn deposit has been drilled over a 500 metre strike length and remains open along strike. Geological mapping undertaken during the March quarter of 2009 has confirmed the presence of nickeliferous gossans within a structurally bound, high-MgO ultramafic unit immediately south of the known mineralisation.
• Yarrawindah Brook, WA - an Inferred Resource of 2.9 Mt at 0.79 g/t PGE was announced by Washington Resources Ltd in March 2006. The company continued exploration in this region during 2008.

Other PGE deposits with recorded resources which have had historic interest but did not record exploration or assessment activity in 2008 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 393 Mt grading 0.3% Ni, 0.3% Cu and 0.18 g/t PGE. The deposit was later acquired by BHP Billiton Ltd 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 108.3 Mt at 0.21 g/t Pt which occurs partly within the Syerston nickel-cobalt deposit.
• Coronation Hill, Kakadu National Park, NT, - the Coronation Hill deposit has an Inferred Resource of 6.69 Mt at 6.42 g/t Au, 1.01 g/t Pd and 0.3 g/t Pt which was reported in 1990. The deposit occurs within the Kakadu National Park and is inaccessible for mining.
• Thomson River, Victoria - in 1981 CRA Exploration Pty Ltd estimated resources as 40 000 tonnes averaging 3.2 g/t Pt, 3.6 g/t Pd, 2.7% Cu, 9.5 g/t Ag and 2.5 g/t Au. Intermittent mining since the discovery of the deposit about 1864 produced around 13 200 tonnes of ore, from which only about 10 kg of Pt was extracted.

1. Mathey, J. 2008 Platinum 2008. Johnson Matthey Public Limited Company. Precious Metals Marketing. http://www.platinum.matthey.com/uploaded_files/Pt2008/08_complete_publication.pdf
2. 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.