Mitsubishi: Platinum Market To Keep Tabs On South African Labor Talks

Friday June 10, 2016 09:03

The platinum market will keep close tabs on labor issues in South Africa, which have the potential to push prices and sponge premiums higher, says Mitsubishi. The union representing the majority of workers at the three largest producers of platinum group metals in South Africa, the Association of Mine Workers and Construction Union, is expected to announce its wage demands next week, kicking off re-negotiation of the soon-to-expire three-year deals. On top of this, operations remain suspended at a Northam Platinum mine due to violence believed to be between rival unions. “With wage negotiations about to get under way, we anticipate some disruptions to mined production, which will eventually show up in lower refined PGM output, and possible higher sponge premiums and higher outright prices, depending on the scale of any labor stoppages,” Mitsubishi says.

By Allen Sykora of Kitco News; asykora@kitco.com