Platinum upheaval warning as price precipice threatens producers
If low prices persist, local sector could shed up to 600,000oz in a couple of ‘pretty violent steps’, says miner
The South African platinum industry could shed up to 600,000oz of metal in "one or two pretty violent steps" if low prices persist, as Sibanye-Stillwater grows into one of the leading sources of the industrial and precious metal, company executives said on Thursday. Sibanye has switched from a gold producer to a company vying for second place among global platinum producers and number three in palladium, hoping to wrap up its all-share takeover of Lonmin before the end of 2018. This would give it a rare mine-to-market platinum group metals (PGM) business, one that is able to shape the market. If the average price in the year to date of R13,000/oz for the four metals making up the basket of metals sold persisted, then 600,000oz would be lost within six years from local production, Richard Stewart, the executive vice-president of business development at Sibanye said during an analysts’ day. Sibanye would not invest in growing production at its existing assets or those of Lonmin as lon...
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