Sustainability of Russian Platinum

The costs associated with environmental degradation of platinum exploration investment are usually higher compared to other major minerals like gold. This has raised concerns over the long-term feasibility of relying on platinum supply to meet technological needs in future due to the social and environmental impact it causes like unfair relocations, compensation issues, air pollution and water pollution (Shields Solar, 2005). The high environmental cost faced in exploring platinum mineral in Russia has become a major concern on the sustainability of the investment. This is because the higher environmental cost in future will diminish the attractiveness of the investment.Accordingly, this paper explores the Russian platinum industry that is the second major supplier of platinum globally and its associated environmental costs like greenhouse release, energy and water. In undertaking the review of the platinum industry of Russia and its associated environmental cost, the project examines on better ways of extracting the minerals that will reduce environmental impacts. This will help in ensuring the platinum resource exploration remains sustainable in future.Platinum exploration is a major economic activity in Russia due to the foreign currency it generates. Russia has over the years been the second largest supplier of platinum in the global market after South Africa (Piskulov, 2012). In 2011, the world supply of platinum component amounted to 3.48 million that consist of 47.3%. This reflects that the platinum supply from Russia is essential in sustaining the growing global demand. The demand for platinum in the global market is due to its application in military, commercial and industrial new technology needs. This implies that platinum exploration under the current market demand has the potential of enhancing revenue for Russia and firms involved in explorations.