SA’s platinum sector is fast approaching the point where companies have little choice but to close or consolidate mines to cope with prices mired at levels of a decade ago despite costs rising annually, leaving more than half the industry unprofitable, senior industry figures say. The estimates of the number of mines in trouble vary from 50% to 60%, but either way the industry, which supplies 80% of the world’s primary platinum, or mined production, is in serious trouble. "It’s an industry in distress, deep distress," says Northam Platinum CEO Paul Dunne, adding options for platinum mining companies after years of low and stagnant prices had effectively narrowed to either close or consolidate."The ability to transact will become a very important characteristic of a successful company … we are at a time where companies will need to deal to survive," Dunne says. "We are in the throes of a correction that is not immediately visible to the market, which is looking for step changes, beca...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.