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Metals slump knocks supplies
Metals slump knocks supplies
Platinum mining companies' demand for power cables and telecoms equipment had "dried up overnight" after metals prices slumped, according Reunert, the local producer of industry supplies.
"Platinum has fallen apart," chief executive Gerrit Pretorius said yesterday.
"Companies have no money. All expansions are coming to a halt and banks are making strategic investments, turning debt into equity."
Platinum has slumped 65 percent from a record $2 301.50 in March (R24 114 at the exchange rate in March) as a worldwide economic slump cut sales of cars and the use of platinum in autocatalysts to reduce exhaust fumes.
Pretorius said: "There is not a country where we do business that has not turned negative. We are going to be in for a rough ride."
Reunert also sells military communications and electronic equipment to countries such as the US and India. |
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