Glencore (LSE:GLEN) has shut its Eland platinum mine in South Africa, Market Watch reported. The closure will result in 970 job losses.
As quoted in the publication:
The Swiss commodities trader and producer had said in July it was reviewing options for the mine in light of poor platinum market conditions and operational issues at the mine.
The price of platinum, which is used in autocatalysts to reduce emissions, fell last week to a near seven year low after Volkswagen AG (VOW.XE) admitted to falsifying U.S. diesel-car emissions tests, raising fears that platinum demand could wane due to lower diesel car sales. This, combined with already lackluster platinum demand as well as rising energy and labor costs in South Africa, have forced many platinum miners to restructure their operations.