Platinum Strikes Affect South African Economy

Bloomberg reported South African President Jacob Zuma said mining strikes are having a “significant” impact on an economy already struggling to cope with Europe’s debt crisis.

As quoted in the market news:

The National Treasury estimates that 4.5 billion rand ($518 million) of platinum and gold mining production was lost as at the middle of September, and 118 million rand of coal, Zuma said in a speech to black businessmen in Johannesburg today.

The strikes began at Lonmin Plc (LMI)’s platinum mine in August and spread to operations owned by Anglo American Platinum Ltd. (AMS) The country’s gold mines, including those of AngloGold Ashanti Ltd. (ANG), Gold Fields and Harmony Gold Mining Co., have also been affected. A strike by more than 20,000 truck drivers is now in its third week, resulting in food and fuel shortages in some parts of the country.

Click here to read the full Bloomberg report.