The SA platinum industry missed a chance to fundamentally change the market’s supply and demand dynamics, which have kept the price low for a decade, when plans by Lonmin to shut or reduce processing capacity failed to materialise.

Lonmin was the biggest casualty of a decade of low prices for platinum, which made up 60% of its revenue; protracted labour stoppages; above-inflation wage and electricity price increases; ageing mines; and an inflexibility in matching production to market demand. It was also hamstrung by poor investment decisions by previous boards.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.