Implats may buy platinum on open market to meet demand
Platinum producer Impala Platinum is considering buying platinum on the open market in order to meet customer deliveries amidst the ongoing strike in the platinum sector.
The strike is heading into a third month as mineworkers demand an increase in the minimum wage to R12 500. Platinum mining bosses have countered with a nine percent wage increase.
Implats is the world’s second biggest producer of platinum but is struggling to meet its obligations to all of its clients.
“We definitely can’t continue to supply all our clients as we normally would’ve done,” Implats spokesperson, Johan Theron, said in a Bloomberg report.
Theron said that the company had met all its deliveries in March and said that the company would meet all its contracts for South African clients in April. Implats would also prioritise “key” international clients at least until the end of the month, Theron said.
Anglo American Platinum CEO, Chris Griffith, said that while the company still has platinum stockpiles it is also considering the possibility of buying the metal on the open market to meet customer deliveries.