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Economic policies
Environmental legislation
Russian export policy
Mining policy in South Africa
Platinum demand depends heavily on the evolution of environmental regulations and standards, particularly in the autocatalysts and fuel cells sectors. In the context of the Kyoto Protocol and its follow up, stricter environmental regulations on emissions standards are being implemented in many countries. Indeed, the Kyoto protocol adopted in December 1997 under the auspices of the United Nations decided to apply a reduction to six greenhouse gases, the main one being carbon dioxide. In particular, it was agreed to cut emissions of this gas by 2012. Under the Kyoto document, the Clean Development Mechanism allows developed countries to invest in clean technology for developing countries, which can be transformed into emission credits on behalf of the developed countries. The reduction of carbon dioxide may give additional impetus to further develop catalyst solution which is expected to favor the use of platinum in this process.
For example, in United States the National Low Emission Vehicle Standards were introduced in 1999 and in the European Union Stage III emissions standards came into force in January 2000 . More stringent emission standards are being introduced in emerging countries as well. Demand for platinum will increase in the future as a consequence of stricter clean air and anti-pollution regulations.
Information on emission standards regulations in the European
Union may be obtained from http://europa.eu.int
and in United States from http://www.epa.gov.
World platinum markets have been extremely influenced by Russian exports policy. The limitations for Russian platinum exports have been based in Clause 19 of an amendment to the Russian budget which became law in December 1998. It stipulated that only specially authorized "state organs" would be allowed to export platinum group metals. This law prevented Norilsk Nickel from selling any of the platinum produced in 1999. The law was finally amended in the end of 1999. However, there were still shipments of platinum from Russia which might come from platinum stockpiles that were used during the 1990s in order to boost sales. As a result, Russian stocks of platinum might have fallen to very low levels so that they might have a lesser effect on the market in the future. Actually, Russian exports from stockpiles have been stopped in 2000. Russian policy has therefore filled the market with uncertainties and concerns about the reliability of supply from Russia.
Since South Africa is the world's leading producer of platinum, this country's mining policies are of the greatest importance for the platinum industry. South African economy as well as local and international circumstances have changed recently, leading to changes in mining legislation. A White Paper on Minerals and Mining Policy for South Africa was released in 1998. This White Paper may be obtained from the Department of Minerals and Energy (http://www.dme.gov.za).
South African system of mineral rights used to be a dual one in which ownership was distributed between the state and private ownership. However, the South African Government's long-term objective is for all mineral rights to be vested in the State. The intention of the Government is to promote mineral development through the "use it or lose it/use it and keep it" principle, in order to achieve equality. The mineral legislation which became a law in May 2004 could be seen as the first step in this direction. It is expected that the implementation of the new Act will lead to increased investment and a competitive business environment.
The involvement of the State in the mineral industry is seen as a complement and support in order to provide sound legal and fiscal environment and efficient physical infrastructure. The Department of Minerals and Energy administers the Minerals Act which regulates prospecting, optimal exploitation, processing and utilization of minerals as well as health and safety issues and rehabilitation of disturbed land.
Recent geophysical and geochemical mapping programmes have shown that there are possibilities of exploration and expansion in the Bushveld Complex. The new mining expansion projects of the South African platinum mining companies might meet the Government's purpose of encouraging mining companies to develop their reserves. Otherwise there would be a risk that the Government revoke mineral rights and relocate them to new ownership. The Government is also encouraging small-scale mining.
