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Platinum price climbs after Marikana deaths
The tragedy at Lonmin’s Marikana mine in South Africa’s North West province, where more than 30 miners lost their lives, has had an impact on the price of platinum, with the metal climbing more than 4% over the past two days to its highest in more than a month.
The metal has been negatively affected by oversupply concerns and the global economic slump that has seen demand weaken.
South Africa is the source of about 80% of the world’s platinum, used mostly in the automotive sector.
In the wake of the union turf war at Marikana, Lonmin’s stock price as well as those of other miners of the metal have come under significant pressure as investors start to consider the implications of the turf war on their operations.
But for the metal itself, problems with production has triggered a mini revival. At 11.55am, platinum was trading 1,6% higher at $1,456 an ounce, its highest since July 6.
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