Platinum Mine Strike now on week #11
There are a lot of different reports and figures coming out of the mine strike in southern Africa, with varying numbers on lost wages and production coming from both the miners the producers and everyone in between. So the question is, what do we know?
Latest news and figures:
Anglo American Platinum CEO recently said “If we run out of metal we will go to the market to buy it … to supply our customers,”. This comes after news that Anglo american has declared force majeure to some of its suppliers in its south african mines.
Anglo American CEO recently said that if Amplats under-performs it may be sold, “every asset has to deliver return and if the business can’t deliver return than we’ll look at all options”
At the end of week ten, the employees have lost 5 billion Rand in wages, while the Mining companies have lost 11 billion Rand in revenue.
Amplats still has around half of thier initial platinum stockpile, 215,000 ounces.
Platinum production takes about 2 months to go from ore to physical metal, so that means we are closing in on the production aspect of the mining companies drying up and the outflow of the stockpiled metal to go up.
The sharp divide between the Miners and Mining companies demands has had little concession, while the miners want double the wages they are currently paid, and the mining companies only offering a 9% increase over three years.
It has been stated that for every month that the mines are closed, it will take an equal amount of time to bring them back to full production
Pallinghurst chairman Brian Gilbertson recently commented about the stagnating platinum price, saying that the price of platinum has hardly responded to the loss of production and that it is unlikely that the price of platinum will remain depressed for much longer