The platinum price could be affected by events in Africa according to recent media reports.
Platinum is in the news in Africa particularly in South Africa and Zimbabwe due to work stoppages and the threat of nationalisation.
In South Africa ongoing disputes are affecting platinum production and pushing up the price in the steel, fuel and mining sectors.
Said Eddie Majadibodu, the NUM’s chief negotiator at Implats recently stated, “The members unanimously rejected the revised offer. We insist on a double-digit increase across the board,” the union has been asking for 14 percent increase while Implat raised their offer to a maximum of 10 percent. Meanwhile talks at Anglo American Platinum (Amplats) are continuing with the union lowering its demands to between 11 and 12.5 percent and the company raising its offer to between 7.5 and 8 percent.
Never the less this is bound to affect process as nervous investors become jitterier.
A different story in Zimbabwe although the result looks the same.
The government decided to give foreign companies, including mining operators, 14 days to provide ???acceptable??? plans to transfer a majority of shares to local residents or they may lose theior permits, according to state media. Companies include the platinum miners Zimplats, which is majority owned by Impala Platinum, and Mimosa, Implats’s 50-50 joint venture with Aquarius Platinum along with Rio Tinto???s diamond mines and various foreign banks.
This is sure to put a dampener on overseas investment and, again, may cause an increase in the price of platinum.