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Anglo's production cutback could result in huge price hike - Fidelis Madavo, PIC
In an interview on Radio 2000 @ 18:23 on Monday 18 June 2007
[miningmx.com] -- THE 15 000 refined platinum ounces production cutback from Anglo platinum’s Rustenburg underground mine combined with a possible platinum industry strike could result in a huge price hike for the metal, according to PIC analyst Fidelis Madavo.
"People are already speculating that the price could reach a $ 1 500/oz level from the current $1280/oz, he said.
Anglo Platinum announced on Monday that it would suspend underground production at its largest operation for seven days in order to to improve workers' safety at the mine.
The announcement comes after 12 fatalities at the operation during the last six months; five of which occurred in the last two weeks.
Anglo American's new CEO, Cynthia Carroll, is suspected to have influenced the decision to suspend production at the mine.
"She is new in the company and she does not want to see
people die," said Madavo.
Sasfin's David Shapiro said South African mining companies tended to overlook mine deaths compared to their international counterparts.
"When you look at international companies such as Rio Tinto, they loose one life, they go to mourning. They take it seriously - it's a major issue," Shapiro said.
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