Miners Unable to Reverse Platinum Rout Putting Lonmin on Brink
- Lonmin warns of collapse as platinum's drop hurts producers
- Prices down as ample above-ground supply satisfies demand
This article is for subscribers only.
Lonmin Plc’s warning that it may be forced out of business shows just how dire the situation has become for some of the world’s biggest mining companies.
At the heart of the problem are platinum prices at a seven-year low and ample amounts of stored metal. While producers have been cutting output, it hasn’t boosted prices because there’s so much available in vaults and from recycling. There’s enough stockpiled platinum to satisfy about a quarter of the total annual demand, according to estimates from the World Platinum Investment Council.