Yesterday, South Africa's biggest gold and platinum mine companies have paused due to recent power cuts in the area. "They took the drastic measure after state power company Eskom said it could not guarantee supplies, raising fears of miners being trapped underground" (BBC news). South Africa is one of the largest producers of platinum and gold. The world's biggest platinum miner, Anglo Platinum, and the three largest gold mining companies, Anglo Gold Ashanti, Gold Fields and Harmony have all suspended production.
This is in no means good for the South African economy. Public Enterprises Minister Alec Erwin, says the next two years will become very critical for South Africa. Because of this crisis, the prices of precious metals around the world have greatly increased, while shares on the four suspended companies have dwindled.
1 comment:
Good job, Brittany. Have you looked into this situation since your original post? How has the South African economy been effected by all this? Have precious metal prices actually risen? How will this effect us here in America?
Mr. R
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