Platinum Price: AMCU to discuss mining companies’ offer with members

iNVEZZ.com, Thursday, June 12: The price of platinum and palladium fell sharply today as South Africa’s Association of Mineworkers and Construction Union (AMCU) said it was going to meet with members to discuss a compensation proposal presented to it by three mining companies as the 20-week old mining workers’ strike drags on. South Africa is the world’s largest producer of platinum and the second-largest of palladium.

Platinum for July delivery plunged $39.50 an ounce to $1441.60 as of 13:29 BST while palladium shed $35.15 an ounce to $824.85.
“‘In-principle undertakings have been reached with the leadership of the [AMCU] in respect of wages and conditions of employment,” Impala Platinum Holdings Ltd. (IMP), the world’s number two producer, said in a statement, which also represents the views of Anglo American Platinum Ltd. (AMS) and Lonmin Plc. (LMI). The companies expect feedback from the AMCU by tomorrow.

As government-sponsored negotiations between the AMCU and major producers came to an unfruitful end on Monday, the metal continued to soar and touched $864 yesterday, its highest level since February 2001.
Johnson Matthey Plc predicts demand for palladium and platinum to outpace supply for the third year in a row. Holdings in palladium-backed funds are at a record of 91.9 metric tons, according to Bloomberg data.
“There’s certainly a risk of a correction if we see any agreement,” James Moore, an analyst at FastMarkets Ltd. in London, told Bloomberg by phone. “The fundamentals are still very favorable. We’re still getting supply disruption and demand continues to increase from the auto sector,” he added.

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