Business Day
*Platinum price spikes as Amplats shuts mine*** *Monde Maoto and Carol Paton, 13 September 2012*THE rand weakened 2% against the dollar and platinum reached a five-month high on Wednesday as unrest in South Africa's platinum sector spread to Anglo American Platinum (Amplats), which suspended operations at its Thembelani mine in Rustenburg.
The world's largest platinum producer is the latest miner to halt production in the North West in the past six months. Aquarius Platinum and Lonmin have also come to a standstill.
Amplats said it was taking precautionary measures to protect its workers from intimidation by "outside" parties. It said its workers were being intimidated "by the threat of violence" after stick-wielding men blocked roads leading to mine shafts.
"Our employees are not on strike. However, in light of the current volatile situation in the Rustenburg area, Anglo American Platinum has decided to suspend its operations in the Rustenburg area," Amplats CEO Chris Griffith said on Wednesday.
Chairwoman Cynthia Carroll said the company was "in touch with the authorities at the highest level to identify how we can work together with our tripartite partners --- government and the recognised labour unions --- to achieve a swift and peaceful resolution to these illegal actions".
Amplats produces 40% of the world's annual platinum output. In July, the company lowered its production forecast for this year, due to dwindling demand, to between 2.4-million ounces and 2.5-million ounces of platinum, from an earlier target of between 2.5-million ounces and 2.6-million ounces.
The announcement on Wednesday sparked a spike in the platinum price, on speculation that the current surplus will fall in the event that the suspensions continue.
The price of platinum rallied to nearly $1,660/oz on Wednesday, a price last seen in April, and some analysts now expect it to reach $2,000/oz within nine months, a price last seen in 2008.
Amplats is reviewing its platinum portfolio, based on expectations that the global supply of the metal will likely exceed demand in the short term.
Striking Lonmin workers agreed late on Wednesday to attend wage talks with the company on Thursday, but they were adamant that they would not return to work until their demands were met.
Their decision was "a major breakthrough", said Jo Seoka, the Anglican bishop of Pretoria, who was the chief liaison between the company and an uncompromising core of strikers who had refused to join the talks since Monday.
Wage talks are scheduled to begin at 10am on Thursday, although Lonmin had made it an express condition of the peace accord that everyone return to work before discussions could begin.
Lonmin spokeswoman Sue Vey said the company hoped everyone would be at Thursday's talks and was happy to go ahead, even without a return to work.
The talks will be facilitated by the Commission for Conciliation, Mediation and Arbitration. Bishop Seoka and Congress of Traditional Leaders of South Africa president Patekile Holomisa will also attend.
*From: http://www.bdlive.co.za/business/mining/2012/09/13/platinum-price-spikes-as-amplats-shuts-mine*
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