India - Industrial demand for gold seen rising

Mumbai, Dec 10 Industrial demand for gold will increase if automotive industry adopts breakthrough technology that will allow use of the yellow metal in reduction of emissions.

Nanostellar, California-based developer of nano-engineered catalyst materials, has been responsible for development of a new product called ‘NS Gold’.

This auto catalyst will enable manufacturers of diesel engines to reduce noxious emissions by as much as 40 per cent more than the existing pure platinum catalyst, a press release from the World Gold Council stated.

Noxious emissions


Noxious emissions are present in the exhaust gases of an internal-combustion engine of a motor vehicle. Auto catalyst use platinum group metals to control these harmful elements like carbon monoxide, hydrocarbons, smoke and smog forming compounds.

The council, a body that promotes demand for gold, has invested in Nanostellar to enable introduction of gold into the auto catalyst market and to facilitate commercialisation and marketing of the gold-based technology.

Projections


According to international projections during 2007, 4.24 million oz (119 tonnes) of platinum is expected to be used in automotive catalysts.

Therefore, at current prices of approximately $ 1400- $1450 per oz the total value of platinum used are expected to exceed $ 6 billion.

As producers of catalyst materials replaced expensive platinum with palladium, further use of gold, nearly half the price ($ 800 oz) will further bring down the use of platinum.

The industrial demand for gold in 2006 totalled 16.1 million ounces or 458 tonnes.

The auto catalyst market is a large and important one for the platinum group of metals “…. we are pleased to see gold play the role”, said Mr James Burton, CEO of the World Gold Council.

Marketing expertise


“The councils marketing expertise, coupled with our technical knowledge, should prove a powerful combination in winning advocacy for our new product,” said Mr Pankaj Dhingra, CEO of Nanostellar Inc.

The demand for platinum in diesel emissions control has been rising due to stricter international emission standards.

But the white metal is the most expensive component of diesel oxidation catalyst required for 14 million light-duty and two million heavy-duty diesel vehicles produced annually.