EDITOR’S COMMENT M y day started like any drastic action against weak commodity He is of course referring to opportunities other – with coffee and the prices, including but not limited to platinum. for rural communities to start up their own morning’s news headlines. Anglo American intends to cut 54 000 jobs small-scale mining business operations But this day was different by selling off numerous assets by the end in and around the areas where they live. and the consequences are showing already. of 2016. This equates to a third of its global With low overhead costs and available 17 July, a Friday, is the day the platinum workforce, currently standing at just over easy-to-use technologies, overcoming the price dropped below $1 000/oz. And 150 000. Anglo recently reported an challenge of gaining access to finance to like many situations in life, I knew it was attributable loss of US$3.02 billion for the six fund these start-ups remains the biggest coming but was still greatly shocked when months to the end of June against a $1.46 hurdle. it did. Precious metal prices have not been billion profit in the same period last year. More importantly, as you will read from this low since February 2009, which is even While platinum is not the company’s page 10, Ramatlhodi is so confident of this more concerning. It suggests a long market only ‘trouble’ metal, it appears to be one industry’s potential he says: “If we get this recovery turnaround. of the biggest. To right, it will assist us to absorb the blows Tracking the platinum date, the mining giant of the current economic downturn. There 17 July, a Friday, is the price since that day has has already stopped have been significant retrenchments in the day the platinum price dropped production at three of now become my daily mining sector but we can use their local below $1 000/oz. And like many its platinum shafts and ritual – has it gone higher, skills to set up enterprises and link up with has it gone lower? At least situations in life, I knew it was is also seeking buyers downstream beneficiation opportunities as it seems to have stabilised coming but was still greatly for its Rustenburg and well. Ultimately, I believe this niche mining shocked when it did” around the $980/oz mark. Union platinum mines. sector could offer more employment This morning it is $987.70. The problem it seems is opportunities than the well-established It seems that despite our platinum that no one wants them. They have been mining industry.” industry’s dramatic turnaround after last up for sale for quite some time. While the Therein lies a potential solution to the year’s five month strike, an impressive feat platinum price remains so weak, this will thousands of job losses the platinum, and you must agree, the world’s demand for unlikely change. Closures remain the next broader mining sector in South Africa, is the precious metal remains weak, in terms obvious choice. experiencing. Can it work? The Department of jewellery consumption as well as the And so, I wait with bated breath to hear of Mineral Resources is determined to see automotive sector which uses platinum for what action plan Impala Platinum intends its success. I remain on the fence with catalytic converters. Even China is unable to to implement to protect itself. More job regards to this potential “new” mining soften these blows. The country’s appetite losses on the cards I presume. arena, but I know with certainty it will be a for metals, generally speaking, is soft and is great help to the country and the levels of currently sitting at levels not seen since the unemployment if it takes off. I’m holding The silver lining global financial crisis gripped the world in thumbs that it does. But all is not lost – according to our mining 2008. It’s time to stop relying on the majors minister Ngoako Ramatlhodi. Speaking Fortunately, and unfortunately, the since they are in no position, at present, to at the Northern Cape small-scale mining industry has been quick to respond. Lonmin offer employment security. conference in Kimberley last month, he is implementing an “orderly closure” of its outlined government’s intentions to help Hossy and Newman shafts and further to grow and expand South Africa’s small-scale this will place a few of its Generation 1 shafts mining sector. (W1, E1 and 1B) on care and maintenance. The company declared, in its Q3, 2015 financial results, that even though it is highly geared to PGM prices; its EBITDA is negative at current price levels. This action forms part of a larger restructuring exercise which Lonmin reveals “will allow for a smaller more sustainable and agile business.” Over the next two fiscal years, the company’s normalised annual production will be reduced by 100 000 platinum ounces. Subsequent to this, about 6 000 employees (including contractors) will likely lose their jobs. My one-on-one interview with DMR minister Ngoako Ramatlhodi in Kimberley. Laura Cornish, Editor, Mining Lonmin isn’t the only company taking Review Africa “ C a u La r ornish 4 MINING REVIEW AFRICA | AUGUST 2015