[miningmx.com] — MINERS operating in the platinum field have much to
learn from their peers in gold, according to Anglo American Platinum (Amplats) CEO
Chris Griffith, saying that collaboration ought to feature prominently in the sector’s
preparation for the next market upswing.
Griffith, who took over as Amplats CEO on September 1, was speaking at the
Southern African Institute of Mining and Metallurgy’s bi-annual platinum conference at
Sun City in the North West on Tuesday, close to many of the platinum mines that have
been besieged by violent labour disruptions in recent weeks.
Griffith said that the industry has had its fair share of challenges before, but that the
number and scale of difficulties facing it today were unparalleled.
The market, he said, has not only been hit by a recession in Europe – the single
biggest market for platinum group metals – but also a slowdown in China’s economic
growth as well as a slower-than-expected economic recovery in the United States.
“The result has been a decline in demand, lower metal prices and therefore lower
profits,” Griffith said. “Added to this is higher-than-expected mining inflation and
lately the production disruptions… that none of the mining houses have escaped.
“The list goes on I’m afraid,’ he said. “One would think that these common challenges
will result in greater industry coordination, even collaboration, but it hasn’t.’
Griffith said that a lack of collaboration in the industry has led to a duplication in
research, particularly in the area of safety, while community development would’ve
been more successful if companies worked together.
“How do we prepare the industry for the next wave of economic growth and ensuring
that companies, communities and the government benefit equally from the next
commodity boom?,’ Griffith asked.
“This will at the very least require collaboration between all stakeholders, mining
companies, government and mine host communities, as well as among companies.
“These relationships are particularly important given the uncertainties relating to
mining regulation in South Africa in addition to property rights, as well as electricity
and water shortages, the skills gap and the compulsory safety stoppages.”
Griffith said gold miners seemed to have a better grip on managing cash costs, even
though they were mining at deeper levels.
“We also we need to learn how to manage the expectations of mine host
communities,’ he said. “We need to work with them and involve them to identify their
needs and stop telling them what we think they need.’
He said tht platinum miners should explore ways to share shaft and processing
infrastructure and be more open to the removal of farm boundaries to improve capital
efficiencies.
“Platinum miners should also collaborate more on market development, as this will
continue to underpin the demand for growth,’ Griffith said. “We all can do more to
reduce our reliance on European autocatalyst demand.”
He said that a key question facing platinum miners was whether they have benefitted
from their scale and dominance and what they need to do to generate better returns.
“We need to sustain our core projects and repair our balance sheets to ensure that
we’re in good shape for the next layer of growth,’ he said.
