Platinum mining in South Africa seems to be in dire straits. The following was noted by the BBC today:
"South Africa's platinum mines have been at a standstill for more than 10 weeks, as a dispute between workers and three of the largest producers of the metal, shows no sign of ending.
The platinum companies have lost revenue - hundreds of millions of dollars - but the strike has also taken its toll on small suppliers and local communities.
Mining companies have offered the Association of Mineworkers and Construction Union (AMCU) workers a 9% pay rise, with other benefits over the next four years, but negotiations have so far proved unsuccessful".(end of quote)
Given the standstill it seems strange that the value of platinum has also taken a tumble, down 2.2% since the strikes started. Apparently the strikes were forecast and mine stockpiles have, to date, minimised any disruption to supply. The large mines subject to the strike action represent 60% of South African production. The remaining smaller mines are still producing.
It seems that platinum is way down in the list of minerals worth investing in ..................for the present!
PLA Price at posting:
6.7¢ Sentiment: None Disclosure: Held
