June 12 (Reuters) – Eastern Platinum Ltd could cut
jobs at its Crocodile River Mine in South Africa as costs rise
and platinum prices fall.
The management of Crocodile River Mine will consult with
potentially affected employees to review the need for a possible
restructuring, Eastern Platinum said.
The company, which last month stopped funding its Mareesburg
mine and Kennedy’s Vale concentrator plant in South Africa, also
ended a $100 million financing package to develop the Mareesburg
mine.
Spot platinum prices have fallen 12 percent in the
last four months to $1,436.28 an ounce, as demand for the metal
used to build emissions-cutting catalytic converters in
automobiles, has remained weak.
Falling prices have also forced Aquarius Platinum Ltd
, the world’s fourth-largest platinum producer, to say on
Monday that it will suspend operations at its Marikana joint
venture in South Africa.
Shares of Eastern Platinum, which reported losses for the
last two quarters, have more than halved in value this year. The
stock was flat at 24 Canadian cents on the Toronto Stock
Exchange on Tuesday.
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