In this article, we’ll discuss countries that produce the most platinum and the metal’s market dynamics. If you want to skip our overview of the recent happenings in platinum mining, read 5 Largest Platinum Producing Countries in the World.

Platinum is commonly found alongside other metals and minerals, not in its pure elemental form, as part of the platinum group metals (PGMs). This group includes platinum, palladium, rhodium, iridium, osmium, and ruthenium. Also, these elements are not typically found in distinct ores, but rather, they are recovered as by-products from the processing of primary minerals such as iron, copper, nickel, and cobalt. Consequently, the average annual production of platinum is less than that of gold, reflecting its rarity in the earth’s crust (0.005 parts per million). This scarcity contributes to platinum’s high value, with its current price per gram being $28.85.

In 2022, the global platinum market saw a consumption of approximately 6,518.3 koz. Key mines contributing to the worldwide platinum output include Mogalakwena Mine, Marikana Mine, Impala Mine, and Union Mine. By the end of 2023, there are projections of a shortfall in platinum production, primarily due to ongoing deficits in the palladium supply. This anticipated scarcity is expected to be influenced by factors such as the high cost of palladium and its substitution with platinum, especially in the automotive industry for catalytic converters.

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Major Uses of Platinum

Platinum is used in vehicle catalytic converters, often in conjunction with palladium and, at times, rhodium. Within a catalytic converter, platinum expedites chemical reactions without undergoing consumption itself. As exhaust gases from an engine pass through the catalytic converter, platinum enables a series of chemical transformations. These reactions minimize harmful pollutants such as nitrogen oxides (NOx), carbon monoxide (CO), and unburned hydrocarbons, transforming them into less detrimental substances, namely nitrogen (N2), carbon dioxide (CO2), and water vapor (H2O). Given its pivotal function in the automotive industry, approximately 61% of platinum group metals (PGMs) are allocated for use in this sector.

Additionally, platinum is a favorite in the jewelry industry, constituting roughly 30% of its market utilization. Platinum group metals also find application in various other domains, including computer hard disks, laboratory equipment, thermocouples, and electroluminescent diodes, among others.

Furthermore, the increasing preference for exchange-traded funds (ETFs) has expanded platinum’s presence in the investment sector. Its recyclability further underscores its value, with a prominent quantity being reclaimed from used automotive catalysts, in addition to smaller amounts obtained from old jewelry and electronics.

Also Read: 20 Countries With the Largest Copper Reserves in the World

Platinum Production Dynamics 

The largest platinum-producing mine is the Bushveld Complex in South Africa, which is a vast mineral-rich area. Within the Bushveld Complex, the highest-yielding mines include Impala, Rustenburg, and Marikana, all contributing to global platinum output. 

Another player in the platinum mining sector is Norilsk Nickel’s mines in Russia, particularly the Talnakh and Oktyabrsky mines, which are crucial for platinum and palladium production. These Russian mines have a high palladium-to-platinum ratio, unlike South African mines where platinum predominates. Similarly, the Stillwater mine in the United States, located in Montana, is another source known for its high-grade deposits and the production of palladium and platinum. Collectively, these mines shape the global platinum market, influencing prices and the availability of PGMs (Platinum Group Metals).

Speaking of the United States, in the financial year 2022, a company based in Montana produced precious metals known as PGMs, valued at approximately $880 million. This marked a decrease from $1.4 billion in 2021 and $1.2 billion in 2020. In Michigan, a small amount of PGMs was also obtained from copper-nickel mines, but these were sold overseas for further processing.

Due to the fact that platinum is produced in relatively small volumes, only a few mining companies report substantial output of the metal. Some of the largest platinum-producing companies include Anglo American Platinum, Impala Platinum, Lonmin Plc, and Vale S.A. (NYSE:VALE), among others. Vale S.A. (NYSE:VALE), one of the most valuable mining companies, is also the second-top producer of nickel. Therefore, the company, like other nickel manufacturers, derives platinum during its nickel refining processes. In the year 2022, Vale S.A. (NYSE:VALE) ‘s production included approximately 3,172 kilograms of platinum, 3,950 kilograms of palladium, and close to 9,020 kilograms of gold, along with 179,000 metric tons of nickel, which is a major source of platinum.

Check which other companies have a strong footing in precious metals by reading 20 Most Valuable Mining Companies in the World.

Our Methodology 

We have identified the countries that produce the most platinum based on data from the USGS Mineral Commodity Summaries over the past three years. These leading platinum-producing countries were then ranked in ascending order based on their average mine output levels. Notably, some countries have not declared their recent platinum production levels, and for them, we referred to the older USGS reports to average their annual platinum levels.

Based on our findings, here are the biggest platinum producers in the world:

12. Ethiopia 

Average Annual Platinum Production: 4.5 kilograms 

Ethiopia’s mining industry is experiencing significant developments with a focus on various minerals. While platinum is not currently a primary target for the country, its limited production places Ethiopia among the largest platinum-producing countries in the world. One major initiative is the Tulu Kapi gold project by Kefi Gold and Copper, which has the potential to enhance the country’s platinum production as it is a by-product of copper mining. This project is noteworthy because it marks the first large-scale mining operation in Ethiopia in three decades, showcasing Ethiopia’s expanding capabilities in mineral exploration, particularly in gold mining.

The Ethiopian government is actively reshaping the country’s mining sector through a new national mining policy. This policy aims to promote the sustainable use of the country’s mineral resources and create a more transparent environment for both local and international investors. This strategy involves strengthening regulations and advocating for sustainable mining methods. Currently, the mining sector in Ethiopia involves the participation of over 100 companies engaged in exploration activities, focusing on various minerals, including gold, gas, iron, and geothermal resources.

Also Read: Top 20 Gold Mining Companies in the World

11. Serbia 

Average Annual Platinum Production: 11 kilograms 

Serbia has the potential for the extraction of platinum and its associated platinum group metals (PGMs). The country has several resource-rich regions, including areas around Kraljevo, Arandjelovac, and Trstenik, that are geologically conducive to mining these metals. These locations contain deposits rich in iron, nickel, or cobalt, which could simultaneously yield platinum group elements, pacing Serbia among the largest platinum-producing countries in the world. However, due to the lengthy mining and production processes for these metals, Serbia’s platinum output remains very low. Further exploration of PGMs requires extensive geological research and the development of specialized mining and processing technology, which Serbia currently lacks.

10. Poland 

Average Annual Platinum Production: 90 kilograms

In Poland, platinum production is primarily associated with the activities of KGHM, a Polish mining giant and one of the world’s largest producers of copper and silver. While KGHM’s primary focus is on copper, silver, and molybdenum production, its portfolio has expanded to include new metals like molybdenum, platinum group metals (PGMs), and nickel. These expansions allow KGHM to be recognized as a multi-resource company in the international mining industry. Notably, the company operates mines and processing facilities across three continents, including Europe, North America, and South America. This extensive reach, combined with its control over primary copper ore resources, positions KGHM as a key player in the global mining sector.

9. Australia 

Average Annual Platinum Production: 135 kilograms 

Australia’s involvement in platinum production currently centers on research and exploration activities rather than direct extraction from dedicated platinum mines. The country’s exploration efforts are led by the Exploring for the Future (EFTF) program, an initiative by Geoscience Australia. With funding of $225 million allocated for the period 2020-2024, this program aims to deepen our understanding of Australia’s mineral and energy resources, including platinum group elements (PGEs).

While Australia’s mining sector is heavily engaged in commodities like lithium, copper, and nickel, which are crucial for low-emissions technologies, platinum-specific mining is not a primary focus. As a result, the country’s recorded platinum production has been low in recent times. However, Australia’s exploration in the nickel and copper mining sectors, where platinum can be a byproduct, can again make it one of the top platinum-producing countries. 

8. Colombia 

Average Annual Platinum Production: 483 kilograms 

Colombia’s mining sector, particularly in platinum production, is part of a broader narrative dealing with challenges and transitions. In 2023, the world faces a significant deficit in platinum supply, attributed to a shortage of palladium, another platinum group metal. This shortage is exacerbated by various global factors, including operational difficulties in key platinum-producing countries such as South Africa, where issues like power outages and labor disputes have disrupted mining operations.

In Colombia, the mining industry, which includes platinum and other metals, stands at a critical juncture. The country is in the process of transitioning towards renewable energy sources, moving away from its traditional reliance on fossil fuels. This transition requires the establishment of clear and stable government policies and investment conditions to support exploration and development within the mining sector. While specific platinum mines or projects are limited, the sector encompasses a copper project with an annual output of 10,000 metric tons, in addition to other projects in various exploratory stages.

7. Finland 

Average Annual Platinum Production: 1432 kilograms 

Similar to other top platinum-producing countries, Finland’s platinum output primarily results from the mining of other metals. A good example is the Hautalampi Nickel-Cobalt-Copper Project, situated in the renowned Outokumpu Mining camp area, approximately 345 kilometers from Helsinki. This project is a collaborative effort between FinnCobalt and Eurobattery Minerals. Eurobattery Minerals initially acquired a 40% interest in FinnCobalt in July 2022 and subsequently expanded its stake to 70% in March 2023. Notably, Eurobattery Minerals’ strategy involves acquiring all of FinnCobalt’s shares, with the goal of completing this acquisition by May 2024. This move signifies a strategic step in securing key resources for battery manufacturing, particularly for the electric vehicle market.

6. China 

Average Annual Platinum Production: 2400 kilograms 

China has been among the top platinum-producing countries in the past, but currently, it mainly relies on importing the metal. In 2022, China imported over 1.2 million ounces (34,000 kilograms) of platinum. In recent years, China has increased its utilization of platinum in both industrial and automotive applications. This increase is partly attributed to a shift towards exclusive platinum usage in these sectors. Specifically, between 2019 and 2022, demand for platinum in these industries grew by 11% and 39% annually, respectively. This data underscores China’s growing dependence on platinum for its industrial and automotive requirements. The trend of high demand and continued importation from China is expected to persist, as indicated by the World Platinum Investment Council (WPIC).

Click to continue reading 5 Largest Platinum Producing Countries in the World.

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Disclosure: None. 12 Largest Platinum Producing Countries in the World is originally published at Insider Monkey.