Violence that's plagued South Africa's platinum mines may spread to more operations in the country, National Union of Mineworkers General Secretary Frans Baleni said.
Fighting could break out elsewhere as the rival Association of Mineworkers and Construction union seeks to recruit members, Baleni told reporters today in Johannesburg. The gold industry might be vulnerable, he said in a separate interview.
Ten people, including two policemen, have died in clashes at Lonmin Plc's Marikana operations in South Africa. Most of the company's mines are running on essential services as employees stay away from work fearing violence and as about 3,000 rock-drill operators started an illegal strike on Aug. 10.
Eoin Treacy's view I
discussed the potential risk to platinum supply in yesterday's Comment of the
Day and David pointed out the large short position in the commodity last Thursday.
These aspects have potential to combine to fuel a sharp short-covering rally.
Today's upward dynamic is the latest in a series from the $1400 region which helps support the accumulation hypothesis. Additional follow through tomorrow would bolster the bullish argument, while a sustained move above $1500 would be required to confirm a return to medium-term demand dominance.