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Deloitte: Expect Unpredictable South African Platinum Market in 2014
Jan. 07, 2014 10:04AM PST
Precious MetalsMining Weekly reported that according to Dr. Jacek Guzek, associated director of Deloitte, in 2014, the South African platinum market is likely to remain unpredictable, though it may be less volatile than it was last year.
Mining Weekly reported that according to Dr. Jacek Guzek, associated director of Deloitte, in 2014, the South African platinum market is likely to remain unpredictable, though it may be less volatile than it was last year.
That’s because stagnant prices for platinum-group metals and “the ever-increasing wage bill,” both of which have contributed to the market’s unrest, are ongoing issues.
As quoted in the market news:
“South African production in 2014 is either going to stagnate or decrease further. The platinum industry is in crisis for a second year going and there is no end in sight,” Guzek told Mining Weekly Online.
He explained that the industry crisis impacted negatively on production as it led to the systemic holding back of expansion capital by junior and major PGM producers, while, simultaneously, existing mines were becoming older, deeper and more difficult to mine.
Guzek added that the country would also still be faced with labour issues during the course of the year.