Friday, 13 December 2013 12:26

Kay Ellen Consolver, member of the Board of Directors, Russian Platinum

 

Kay Ellen Consolver, member of the Board of Directors, Russian Platinum

Russian Platinum's Kay Ellen Consolver explained why the price of platinum hit the bottom recently. Consolver told innovaBRICS & beyond the future plans of Russian Platinium.

Q: How has Russian Platinum been affected by low platinum prices in the world markets?
Russian Platinum was planing to list on the London Stock Exchange in October 2011 to raise money for the two other licenses it holds in Norilsk, which appear to be very rich in platinum. But as the price of platinum went through the floor where it still is, they had to step back. Now they are doing the planing and getting basically the infrastructure in place. Eventually, I think they will list and proceed in that direction but for the time being, it still is a privately owned company.

Q: Which are your primary markets?
The primary market is Europe. We exclusively work in Europe, selling the platinum into the diesel market for catalytic convertors for cars. That is exclusively one of the ways we work.

Q: Any plans to expand into new markets?
Currently, the plan is to develop the two major sites that we have in Norilsk.

Q:As an exporting company, do you have any complaints regarding red tape?
Actually not any more, but used to have. Its cleared up now. It is not a problem anymore.

Q: Any new investment plans and expectations from the near future?
We just want to get on with what we are doing. What we are doing is, we will be re-investing in the existing mine, which is operating, bringing in better equipment so we can process more efficiently. We are going to bring in new kinds of equipment which function more efficiently and cost effectively. So there will be more investment in this front but the major investment is to start in the mining in these two sites in Norilsk.

Q: What do you think are the major reasons why the price of platinum hit the bottom recently?
The state of the world economy has played a role to a certain extend. But all the difficulties faced in South Africa also had a negative effect. We don't have the same kind of health and environmental issues as South Africa but all that affects the price. In South Africa, there was the competition of miners, the deaths and the strikes. That makes the price unstable.
Platinum prices are also affected by gold. Gold has been very unstable.
Also, we don't sell into the jewellery market in China. Chinese are stepping back a bit from jewellery production and that affects the industrial market.I would like to add that Russia is very fortunate in terms of natural resources. But at the same time, I am encouraged that there some other businesses outside that arena are also developing to support the economy.