Australia

Details

  • Industry: Energy & Natural Resources, Mining
  • Type: Business and industry issue, Regulatory update
  • Date: 15/01/2014

Commodity Insights

Commodity Insights Bulletin
KPMG's quarterly global bulletins provide insight into trends, issues and changes within the key mining commodities.

Platinum Insights: Q2 & Q3 2013 

As expected, the year following the Marikana event has been a bumpy period for the platinum industry in South Africa. Early in 2013, government and labour exerted pressure on Anglo American Platinum (Amplats), the largest global producer of platinum, to terminate its plans to substantially reduce headcount at a number of operations. This reduction was in line with a portfolio review commissioned by its parent company, Anglo American Plc.
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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.

 

 

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