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Nomura Predicts Bleak Outlook for South African Platinum Sector
Jun. 18, 2013 11:05AM PST
Precious MetalsThe Economic Times reported that Japan’s Nomura has warned that as many as 121,500 jobs and 60 percent of South Africa’s platinum production could be at risk in the next few years as a result of rising mining costs and political risks.
The Economic Times reported that Japan’s Nomura has warned that as many as 121,500 jobs and 60 percent of South Africa’s platinum production could be at risk in the next few years as a result of rising mining costs and political risks.
As quoted in the market news:
[Nomura analysts] paint a bleak picture of the economically vital sector, in the wake of violence in Marikana last August which claimed 34 lives on one day.
‘There are around 24,000 jobs at risk next year… the number of jobs at risk rises to 121,500 in 2015.’
Any cuts in production or labour unrest would have a major impact on platinum markets and lives in the restive platinum belt in the north of the country.
South Africa is home to more than three quarters of the world’s known platinum reserves.
Click here to read the full report from The Economic Times.