U.S.Geological Survey (USGS): Palladium

Statistics and Information: Naturally occurring platinum and platinum-rich alloys have been known for a long time. The Spaniards named the metal "platina," or little silver, when they first encountered it in Colombia. They regarded platinum as an unwanted impurity in the silver they were mining.

The catalytic properties of the six platinum group metals (PGM)– iridium, osmium, palladium, platinum, rhodium, and ruthenium – are outstanding. Palladium, platinum, and rhodium have been used as oxidation catalyst in catalytic converters to treat automobile exhaust emissions. A wide range of palladium and platinum group metal alloy compositions is used in low-voltage and low-energy contacts, thick- and thin-film circuits, thermocouples and furnace components, and electrodes.

Palladium
(Data in kilograms of content unless otherwise noted)

U.S. Domestic Production and Use: The Stillwater and East Boulder Mines in south-central Montana are the only primary platinum-group metals (PGMs) mines in the United States and were owned by one company. Small quantities of PGMs were also recovered as byproducts of copper refining by companies in Texas and Utah. Platinum, palladium, and a variety of complex gold-silver-copper alloys are used as dental restorative materials.

U.S. Recycling: An estimated 26,000 kilograms of PGMs was recovered from new and old scrap in 2008.

U.S. Import Sources (2004-07): Russia, 41%; South Africa, 22%; United Kingdom, 18%; Belgium, 5%; and other, 14%.

U.S. Depletion Allowance: 22% (Domestic), 14% (Foreign)

U.S. Government Stockpiles:

Events, Trends, and Issues: A power crisis in South Africa, the world’s leading supplier of PGM, resulted in the shutdown of all platinum mines for 5 days in January, which caused production loss, supply fears, and record-high prices in the first half of 2008. Prices of platinum and rhodium reached alltime highs of $2,275 per troy ounce and $10,100 per troy ounce, respectively, and the palladium price reached a 7-year high of $585 per troy ounce. The global economic downturn resulted in lower automobile demand, which in turn resulted in falling consumption and prices of PGM in the second half of the year. The desire for an alternative fuel, both for automobiles and to power homes, has led to a large global public and private effort to develop fuel cell technology.

Platinum is the catalyst used in fuel cells to convert hydrogen and oxygen to electricity. A decrease in car sales in Europe and North America can be expected to cause a decrease in use of platinum and palladium in the regions in 2008 and beyond. The tightening of emissions standards in China, Europe, Japan, and other parts of the world is expected to lead to higher average platinum loadings on catalysts, especially in light-duty diesel vehicles, as particulate matter emissions become more closely controlled. In the United States, thrifting is continuing at most manufacturers and is likely to lead to a reduction in the use of platinum in autocatalysts. The large price differential between platinum and palladium has led to the assumption that automobile manufacturers will continue to change PGMs ratios in gasoline-engine vehicles in favor of palladium, as well as continue efforts to increase the proportion of palladium used in diesel vehicles.

The sales of platinum jewelry are expected to drop worldwide, as the price continues to be high and white gold and palladium are substituted for platinum. In May, new investment vehicles for PGMs, ETNs, were launched for platinum and palladium and are the first such PGM-trading product available to U.S. investors. Unlike exchange-traded funds, ETNs are based on futures contracts, and physical metal is not held.

World Mine Production, Reserves, and Reserve Base:

World Resources: World resources of PGMs in mineral concentrations that can be mined economically are estimated to total more than 100 million kilograms. The largest reserves are in the Bushveld Complex in South Africa.

Substitutes: Some motor vehicle manufacturers have substituted palladium for the more expensive platinum in catalytic converters. Until recently, only platinum could be used in diesel catalytic converters; however, new technologies allow as much as 25% palladium to be used. For most other end uses, PGMs can be substituted for other PGMs, with some losses in efficiency. In addition, electronic parts manufacturers are reducing the average palladium content of the conductive pastes used to form the electrodes of multilayer ceramic capacitors by substituting base metals or silver-palladium pastes that contain significantly less palladium.

(e) Estimated.
(NA) Not available. — Zero.
(1) Actual quantity will be limited to remaining monetary sales authority or inventory.
(2) Included with “Other countries.

U.S. Geological Survey, Mineral Commodity Summaries, January 2009