Battle of the platinum belt
Why the platinum industry is in a worse place five years after Marikana
Platinum’s boom years have been followed by a multi-year slump in the metal’s price. Yet miners are reluctant to adapt to a changed market
Forty years ago, Rustenburg was a pretty little town of citrus orchards and holiday resorts. Today, the rolling hills to the south of the N4 highway face ugly slag heaps to the north, with occasional mine headgear visible in the distance. These are relics of a boom time that’s been followed by a multi-year slump in the platinum price. Yet mining companies and their employees are reluctant to adapt to a changed market.For several years the price of platinum has been sliding as supply has continued to exceed demand. Whereas in January 2013 platinum would sell for more than R15,000/oz, today it sells for less than R13,000/oz. SA’s platinum miners — led by Anglo American Platinum, Impala and Lonmin — are adapting slowly and reluctantly to the changing market. While they’ve shut a few shafts, it has not been enough to influence prices. And yet, surprisingly, the contrast in the mood between Rustenburg’s established side and the townships of Sondela and Tlhabane, where most mineworkers li...
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