- Write by:
-
Friday, March 1, 2024 - 22:44:15
-
153 Visit
-
Print
Northam Platinum’s CEO said on Friday that platinum mining companies in South Africa, the world’s top supplier of the metal, are facing “severe” market conditions and are caught up in the worst crisis in three decades as prices plummet.
“I personally believe it’s the worst crisis I have seen in three decades, on a relative basis,” said Paul Dunne, the CEO of Northam, South Africa’s fourth-largest producer of platinum-group metals.
“The squeeze on the industry is severe,” he told journalists.
South Africa’s biggest producers of the precious metals are halting spending worth billions of rand on output expansion projects and cutting jobs as they battle to keep a lid on costs as profits plunge due to lower metal prices.
Anglo American Platinum said it plans to cut 3,700 jobs, while rival Sibanye Stillwater has also laid off about 2,600 workers. Impala Platinum on Thursday said it may decide within six months to close loss-making shafts, if prices do not improve.
Northam isn’t cutting jobs at the moment, but the company is also holding back spending on projects, the CEO said.
Prices of platinum – mostly used by automakers to curb toxic emissions – have fallen. Producers cite weaker economic growth in China and destocking by manufacturers who built up stocks during Russia’s invasion of Ukraine.
Platinum fell 0.4% to $872.75 an ounce on Friday while sister metal palladium edged up 0.3% to $944.68 an ounce.
“The current market conditions are severe and our primary view is we maybe in for a difficult time,” Dunne said. “We can’t see a sign in the market for a quick rebound yet.”
Short Link:
https://www.miningnews.ir/En/News/628083
South African diversified miner Sibanye Stillwater is discussing with lenders to temporarily lift limits on borrowings, ...
Anglo American’s key South African shareholders are open to a takeover offer from BHP, with some advocating for an ...
Anglo American’s key South African shareholders are open to a takeover offer from BHP, with some advocating for an ...
Africa-focused Montage Gold announced Thursday it has received a ministerial order granting all environmental approvals ...
BHP’s plan to divest the South African assets of its target Anglo American are key to the strategy behind the proposed ...
Anglo American CEO Duncan Wanblad is meeting on Friday South African mines minister Gwede Mantashe for the first time ...
Harmony Gold said on Thursday an employee working on planned rail maintenance had died at its Mponeng mine in South ...
BHP Group (ASX: BHP) has deployed a senior team including its chief executive officer to South Africa as the world’s ...
M23 rebels in eastern Democratic Republic of Congo have taken control of Rubaya, a key mining town for the smartphone ...
No comments have been posted yet ...