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PALLADIUM SUPPLY
Total world supply of palladium in 2001 was 7.3 million ounces, with Russia providing approximately 59% of this amount, primarily as a by-product from the Norilsk nickel mine and from stockpiles. South Africa accounted for approximately 27% of supply. The principal South African PGM producers are Anglo Platinum (formerly Amplats), Impala Platinum and Lonmin. North America, with two primary producers, North American Palladium and Stillwater Mining Company, provided approximately 8% of 2001 supply. Palladium is also produced in North America as a by-product of nickel and copper mining at the Canadian operations of Falconbridge Limited and Inco Limited.
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Palladium
Supply By Region, 1996-2001
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1996
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1997
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1998
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1999
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2000
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2001
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('000
ounces)
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| Russia |
5,600
|
4,800
|
5,800
|
5,400
|
5,200
|
4,340
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| South Africa |
1,690
|
1,810
|
1,820
|
1,870
|
1,860
|
2,010
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| North America |
455
|
545
|
660
|
630
|
635
|
850
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| Other |
95
|
95
|
120
|
160
|
105
|
120
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| Total | 7,840 | 7,250 | 8,400 | 8,060 | 7,800 | 7,320 |
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Source:
Johnson Matthey Platinum 2002, May 2002.
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Palladium
supply decreased primarily as a result of a 17% decrease in Russian sales
to 4.4 million ounces in 2001. In August 2001, Norilsk Nickel announced
its intention to cease spot sales in an attempt to support the palladium
price. Recently, Norilsk announced a long-term palladium supply contract
with General Motors. This and other contracts should eliminate palladium
supply disruptions and create a more liquid market for palladium.