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Results of Amplats-South Africa Discussion Could Push Platinum Up
May. 06, 2013 10:50AM PST
Precious MetalsCNBC reported that platinum prices could move higher if Anglo American Platinum Ltd.’s (OTC Pink:AGPPY) talks with the South African government and unions in the country result in a substantial restructuring of the nation’s platinum sector. Such restructuring could involve cutting as many as 14,000 jobs and mothballing two South African mines.
CNBC reported that platinum prices could move higher if Anglo American Platinum Ltd.’s (OTC Pink:AGPPY) talks with the South African government and unions in the country result in a substantial restructuring of the nation’s platinum sector. Such restructuring could involve cutting as many as 14,000 jobs and mothballing two South African mines.
As quoted in the market news:
Any labor unrest may swiftly rekindle bitter memories of violent confrontations last year at the Marikana mine owned by the world’s third-largest platinum producer Lonmin where 34 striking miners were shot dead by police last August in South Africa’s deadliest security incident since the end of apartheid in 1994.
“South Africa has a history of labor issues,” Barratt said. “Remember the PGM [the platinum group of metals] market is very tightly controlled so any concerns there in terms of labor issues will hit the market relatively quickly. As a result, I think you will see a bounce” in prices.