Anglo American Annual Report 2012

OPERATING AND FINANCIAL REVIEW PLATINUM01 Unki mine’sconcentrator plantin Zimbabwe.02 Fitter assistant MosesNyamunda and chairliftoperator Sankie Mafokoworking on maintainingthe conveyorsat Marikana No. 4shaft decline.JewelleryGross platinum demand for thefabrication of jewellery rose by 10%to 2.7 million ounces, as strongdemand from China and Indiabalanced generally weaker economicconditions across the globe. Withplatinum trading at a discount to goldthroughout the year, manufacturerswere able to receive higher margins,encouraging the use of platinum inChina, while demand in India continuesto grow faster than other markets inpercentage terms.Gross demand for platinum for thefabrication of jewellery in China roseby 14% in 2012, to approximately1.9 million ounces, of which recycledplatinum jewellery represented halfa million ounces. Platinum purchasesby manufacturers increased by 16%to 1.4 million ounces.IndustrialFollowing record demand for platinumin 2011, as purchasers addresseddelayed consumption, platinum offtakefor industrial applications decreasedby 16% to 1.7 million ounces.InvestmentInvestment demand for platinumwas flat at 460,000 ounces in 2012,although the performance during theyear was erratic. Japanese buyers oflarge bars were very active in themonths when the price was lower thanYen 4,000/gram ($1,550 per ounce).The release of the Canadian PlatinumMaple Leaf and the AustralianPlatinum Platypus bullion coinsalso boosted interest in demand.After significant liquidation ofpalladium ETFs in 2011, positivesentiment resulted in a 16%increase in net holdings in 2012,to 2.04 million ounces.010280 Anglo American plc Annual Report 2012