But who would really want it? TradersCorner.co.za founder Garth McKenzie says the platinum sector is fraught with complexity – all the big producers have issues with costs that are beyond their control, an increasingly militant labour force and a growing number of risks.
“Their hand was forced into paying even bigger salaries despite the fact that they were losing money. The challenges in Lonmin are massive and the opportunities somewhat limited,” says McKenzie.
Not only that – but the South African business environment is struggling and seeking a scapegoat. The highly publicised high wage settlements agreed by Lonmin have had a knock-on effect and have emboldened workers in other sectors.
“They really stuffed it up for everybody,” says one CEO privately. The wave of protest action that hit the mining sector in the aftermath of the Lonmin wage