Platinum mining output plunges the most in two years - CNBC Africa

Platinum mining output plunges the most in two years

Mining

by Trust Matsilele 0

The never-ending strikes have reduced the world's biggest platinum producers into ghost mines. PHOTO: Getty Images

These new projections come less than 48 hours after another platinum company, Tharisa, listed on the Johannesburg Stock Exchange.

“There are a lot of things that have to happen so as to reflect the value of the mine. There is need to get recovery shafts with production getting back to 100 per cent operation and operating seven days a week,” Peter Major, a mining analyst told CNBC Africa.

Taking a swipe at the failure by the government to mediate the never-ending strike, Major said, indications suggests lack of seriousness.

“If you operate in a genuine democracy everything sane should have happened three months ago, but if you operate in a phoney democracy where you have the tripartite at the top making decisions then surely the possibility of ending the strike and allowing those who want to work to return will not be viable,” he added.

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Major reiterated that if ending the strike was a priority for the government, the government would have ended the strike legally and democracy three months ago.

Analysts have maintained that the tripartite alliance incorporating the ruling African National Congress (ANC), Cosatu and the South African Communist Party (SACP) has been pushing legislation that is counter-productive. They say labour legislation should be revised and should rather be discussed in parliament and not in the alliance.

The strike entering its 12th week is spearheaded by the Association of Mineworkers and Construction Union (AMCU) against leading platinum producers which include Amplats, Impala Platinum and Lonmin mines.

(WATCH VIDEO: Platinum sector strike continue to raise concern)

The government has tried to intervene through its deputy president and failed to yield any meaning results, the same with the Commission for Conciliation, Mediation and Arbitration (CCMA) saying the parties were too far apart to agree.

BY TRUST MATSILELE

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