Weekly Metals News Digest – March 10-14
Platinum Deficit Forecast to Widen
Global platinum production is expected to decline by 5% in 2025 to 5.5 million ounces, according to the World Platinum Investment Council (WPIC). South Africa, the world's largest producer, is projected to see a 6% drop in output to 3.9 million ounces. North American production is set to decrease by 15% to 216,000 ounces, while other nations will maintain their combined production at 191,000 ounces. Zimbabwe is expected to maintain its 2024 production levels at 514,000 ounces, while Russian figures remain undisclosed.
Recycling will contribute nearly 1.5 million ounces to the global platinum supply in 2025, up 1% from the previous year. The majority of this supply will come from recycled automotive catalysts, which are expected to yield 1.13 million ounces. As a result, total platinum availability is forecasted to be just over 7 million ounces, marking a 4% year-over-year decline.
Demand for platinum is projected to decrease by 5% to 7.85 million ounces due to economic instability and trade tensions. Automotive consumption will fall by 1% to 3.1 million ounces, driven by a shrinking diesel vehicle market in Europe and reduced truck production in North America. Industrial demand will drop by 14% to 2.15 million ounces, with the most significant declines in the glass (-58%) and chemical (-5%) sectors, largely due to slower capacity expansion in China. Conversely, platinum demand in the oil industry is expected to rise 30% to 205,000 ounces, reaching a five-year high.
Jewelry sector demand is set to increase by 2% to 2 million ounces, the first rise since 2019, supported by increased platinum jewelry production in China (+5%), India (+7%), and North America (+2%). Investment demand, however, is forecast to decline by 14% to 606,000 ounces, as investor interest in platinum coins and bars wanes, particularly in Japan. Still, platinum-backed investment funds could see a 60% increase in holdings due to the metal's price differential with gold.
WPIC has revised its platinum deficit forecast upward, now expecting a shortfall of 848,000 ounces in 2025, a 36% increase from previous estimates. The primary cause is a slowdown in recycling. Following significant deficits in 2023-2024, global platinum stockpiles are expected to fall to 2.5 million ounces, covering less than four months of consumption.
KGHM Group Exits Canadian Copper Operations
Magna Mining has completed its acquisition of a portfolio of Canadian copper assets from Poland’s KGHM International in a deal worth approximately $3.7 million in cash, 1.2 million common shares valued at $1.4 million, and an additional deferred payment of $1.4 million due by the end of 2026. The agreement also includes interim payments totaling $16.6 million.
As part of the deal, Magna Mining acquired Project Nikolas, which includes the Falconbridge Footwall, Northwest Foy, North Range, and Rand exploration projects. Additionally, the company gained ownership of the operating McCreedy West copper mine and the idled Levack, Podolsky, and Kirkwood operations, which previously produced copper, nickel, and precious metals.
KGHM International is a subsidiary of Poland’s KGHM Group, which also owns KGHM Polska Miedz. This year, KGHM Polska Miedz expects to produce 392,300 tonnes of copper concentrate and 567,100 tonnes of copper cathodes, with 375,400 tonnes sourced from its own materials. Copper sales are projected to total 572,900 tonnes. KGHM International is expected to contribute 52,100 tonnes, while Sierra Gorda, 55% owned by KGHM International, is forecast to produce 87,200 tonnes.
Lithium Americas Secures Investment for Thacker Pass Project
Lithium Americas will receive a $250 million investment from Orion Resource Partners to fund the first phase of its Thacker Pass lithium project in Nevada. The investment includes a $195 million purchase of senior unsecured convertible notes, an option for an additional $30 million, and a $25 million production payment agreement.
Orion Resource Partners may also provide up to $500 million in additional financing for the second phase of Thacker Pass. Previously, Lithium Americas formed a joint venture with General Motors in December 2024, with GM contributing $625 million for a 38% stake. The agreement included $430 million in direct funding for Phase I and a $195 million letter of credit. The two companies will also provide an additional $181 million and $100 million, respectively, upon final investment approval.
Lithium Americas is also in talks with the U.S. Department of Energy for a $2.26 billion loan, expected to be finalized by mid-2025.
Thacker Pass, located within the extinct McDermitt Caldera supervolcano, contains high-grade lithium deposits. The project, to be completed in five phases, includes an open-pit mine and a hydrometallurgical plant with a planned capacity of up to 160,000 tonnes of battery-grade lithium carbonate annually.
Indonesia Considers Higher Taxes on Nickel Exports
The Indonesian Ministry of Energy and Mineral Resources has proposed a tax hike on nickel ore extraction, shifting from a flat 10% rate to a variable rate between 14-19%, depending on government-set base metal prices. Smelted nickel would also face increased taxation.
In addition to nickel, the new tax measures would impact copper, tin, and gold mining, with revenues intended to offset government spending on social initiatives introduced by President Prabowo Subianto, such as free school lunches.
These proposals come at a difficult time, as nickel prices remain low. Indonesian producers are already considering output reductions, and additional tax burdens could lead to significant production cuts. However, a decline in Indonesian nickel supply could support global price recovery after years of oversupply.
Cobalt Prices Surge Amid Supply Disruptions in Africa
China’s MMG has suspended operations at its cobalt smelter near the Kinsevere mine in the Democratic Republic of Congo (DRC), citing unfavorable market conditions. Cobalt prices, which had declined due to oversupply and weakening demand from the electric vehicle sector, have now rebounded sharply.
The Kinsevere cobalt plant, part of a $600 million expansion project, began operations in September 2023 and produced 1,600 tonnes of cobalt in 2024. However, in February 2025, the DRC government imposed a four-month cobalt export ban, prompting Eurasian Resources Group to declare force majeure at its Metakol plant, which produced 19,200 tonnes of cobalt hydroxide last year.
CMOC Group, another major cobalt producer, had planned to increase output to 120,000 tonnes in 2025 but may now face disruptions. The situation in the DRC, coupled with potential production cuts in Indonesia due to low prices, could tighten global supply and further boost prices.
Hedge funds, including Anchorage Capital Advisors and Squarepoint Capital, have reportedly been accumulating cobalt stocks, betting on long-term price increases. As a result, cobalt prices have surged from $21,550 per tonne in late March to over $33,500 per tonne, with forecasts suggesting further gains up to $35,000 in the coming weeks.
