SA platinum miners urged to close more loss-making mines

Platinum miners in SA - the world's largest supplier of the metal - have repeatedly warned this year that they are struggling with high costs and safety stoppages.

Aquarius - the first producer to halt an unprofitable mine - said yesterday it would put Marikana mine, which it shares with Anglo American Platinum (Amplats), on care and maintenance. "Trading conditions in the platinum industry are expected to remain difficult in the short-to medium term," the company said, "and these conditions have rendered the operations at Marikana uneconomic."

Prices have been subdued - particularly in Europe, a major buyer of platinum for autocatalytic exhaust systems in diesel vehicles. A reliable source in the platinum sector said more closures were coming as mining companies reviewed whether it made sense to produce the metal and deplete their ore bodies at loss-making prices, Business Day reports.

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