[miningmx.com] – SOUTH Africa’s platinum sector was in need of asset consolidation in order to establish better supply-side discipline, said BDLive citing Lonmin CEO, Ben Magara.
“This industry needs more consolidation than fragmentation, because we need the supply discipline,” Magara told BDLive. “Fragmented industries, as history has shown us, have never been the way to manage loss-making production and supply discipline,” he said.
Magara was commenting on the possible unbundling of Anglo American Platinum’s Rustenburg operations into a separately-listed company.
According to Anglo American Platinum, there has been a supply deficit in the platinum industry for the last three years which was being supplied with above ground inventories, estimated to have fallen to 2.2 million oz from 4.1 million oz in 2012.
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