Platinum mines around the world are getting old and worn out, creating big risks for global supply. Most platinum comes from South Africa, where aging equipment, power outages, and falling ore quality are cutting production sharply.
In 2025, mine supply dropped by about 5 percent compared to the year before, hitting the lowest levels since 2014 outside of pandemic disruptions.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf One forecast puts it even lower at a 6.4 percent decline to around 3.87 million ounces, the smallest output in 25 years ignoring strikes and COVID.https://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the Total platinum supply fell 2 percent to 7.13 million ounces that year, as weaker mining could not keep up with a 7 percent rise in recycling from old car parts and jewelry.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
South Africa’s mines face deep problems. Infrastructure is decaying, with old shafts and elevators breaking down more often. Electricity is unreliable, forcing shutdowns that miners cannot easily fix. Rail lines for hauling ore are clogged or broken, leading to permanent losses of unmined metal. Private rail fixes are starting, but they will take years to help.https://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the Rising energy costs, labor shortages, and strict rules add pressure in South Africa and Zimbabwe, the top producers.https://gerrardsbullion.com/invest/2025-in-review-the-themes-that-shaped-the-precious-metals-market/ Early 2025 data shows global supply down 3 percent, deepening the shortage.https://gerrardsbullion.com/invest/2025-in-review-the-themes-that-shaped-the-precious-metals-market/
This creates supply risks because platinum demand stays strong for cars, hydrogen fuel cells, and industry, even if it dipped 5 percent in 2025 due to slower glass manufacturing.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf The market ran a deficit of 692,000 ounces in 2025, or 9 percent of demand, marking years of shortfalls that drained stocks to just four months of coverage.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the Recycling helps but fell to record lows in 2024 before a small rebound, still 25 percent below pre-COVID highs.https://shanakaanslemperera.substack.com/p/the-platinum-singularity-how-the
Few new mines are opening due to high costs and delays in approvals. Producers focus on keeping expenses down instead of expanding, much like challenges in other metals.https://gerrardsbullion.com/invest/2025-in-review-the-themes-that-shaped-the-precious-metals-market/https://minesandmoney.com/news/industry/resourcing-tomorrow-2025-the-long-and-the-short-of-it Prices stayed low around $1,000 to $1,600 per ounce in 2025, but experts see deficits pushing them up as demand from clean energy grows.https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts
These trends mean the world relies on limited, aging sources with little backup. Mine output may rise slightly in 2026 from inventory releases, but the overall squeeze continues.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf
Sources
https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf