Automotive Emission Legislation spikes the demand for Platinum

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Researched by Industrialinfo.com (Industrial Information Resources, Inc.; Houston, Texas). Tighter emission legislation is stimulating a rise in the use of platinum by the automobile industry. A call for global environmental protection and awareness has led several countries to set what is known as Low Emission Vehicle (LEV) standards. These LEV standards have forced automobile manufacturers to fit vehicle exhaust systems with catalytic converters to control harmful emissions. Auto catalyst made from platinum and other platinum group metals such as palladium and rhodium helps to control harmful emissions, such as sulfur dioxide.

Platinum's high resistance to corrosion and oxidation, has a made it a metal of choice, not only for automobiles, but also the jewelry industry. Auto catalyst accounts for 30 percent of the worldwide platinum consumption, with jewelry and industrial uses taking up 46 percent and 24 percent respectively.

While platinum accounted for about 30 percent of auto catalyst demand during 1999, the sale of platinum for used in auto catalyst continues to grow as LEV standards in USA, Europe and Japan get even more stringent by 2006. Platinum jewelry demand continues to grow strongly, aided by the global fashion trend towards this white metal.

Anglo American Platinum Corporation Limited (Anglo Platinum) of Johannesburg, South Africa, the world's largest platinum producer is at the forefront to sustain the supply of this metal. Anglo Platinum is planning to spend $1.6 billion (USD) to increase its annual production capacity to 3.5 million ounces/year of platinum by 2006. This would account for slightly over half the world's current net demand.