This government intervention, even a threat of revoking mining licences, sent a clear message to other producers to avoid large scale headcount reductions given the volatile social economic environment. This brought a widespread negative reaction from investors given the inability of many producers to fund losses over the medium- to long-term.
Concerns around labour issues and rational use of available capacities in South Africa raised the average platinum prices. However, a drop in gold prices in April 2013 pulled down the price, following which the metal became unresponsive to supply risks and declined. Platinum prices further slipped by 1 percent during Q3 2013. However, palladium prices stayed at about Us$700/oz for most of the first three quarters of 2013.