Ongoing strikes in South African mines

The British bank HSBC expects that the ongoing strikes in South Africa are likely to lead to higher prices for precious metals (including gold, silver, platinum, palladium) in the short term.

According to HSBC, ongoing strikes against precious metals producers in South Africa have led to one of the largest producers considering closing mines, which would result in a rising price for precious metals.

The CEO of Anglo American Platinum, the world's largest platinum producer, said this week that it is considering closing unprofitable mines in the Rustenburg area  . This message comes out as the Association of Mineworkers and Construction Union is in its tenth week of strike action against Amplats, Impala Platinum and Lonmin.

The producers indicate that they have enough stock to compensate for the temporary loss of production caused by the strikes. The long-term effects of closing certain mines could lead to rising precious metal prices, according to an analyst at HSBC.

Source: Bloomberg