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Russia/South Africa: ‘Long shot’ partnership to influence platinum market, avoid cartel

By  |  March 28, 2013
Russia/South Africa: ‘Long shot’ partnership to influence platinum market, avoid cartel

A proposed partnership deemed “ambitious” by two leaders of the world’s platinum market is reportedly underway, a move the parties say will not create a cartel but will help them to influence the global market. Russia and South Africa, who hold a combined 80 percent market share, are planning on developing a new body to coordinate the exportation of platinum. The plan is said to emulate the Organization of the Petroleum Exporting Countries between various nations including Brazil and India. Now, Russia and South Africa are planning to make a similar partnership to coordinate platinum exports to have a heavy influence on the market. “The price [of platinum] depends on the structure of the market, and we will form the structure of the market” said Russia’s Natural Resources Minister Sergey Donskoy. Mineral Resources Minister Susan Shabangu assured, however, that the intent is not to form a cartel. The two have signed only a framework of their plan as of now, said Donskoy.

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