There are glimmerings of a resource recovery after more than a decade of declining demand, in the Southern African region. Leading this recovery is the platinum group metals. There has been less appetite to open new mines due to social unrest , a long damaging strike ,socialist government interference,falling prices and demand. It takes about ten years to bring a new mine into production in ideal circumstances and to make it a paying proposition.
Johnson Matthey sees the shortage that is developing getting worse over the next couple of years. The Southern African region produces about 80% of all PGM's. Palladium being the exception with a large Russian production, which might not be available to the West with worsening relations in that region.
In Zimbabwe the geriatric dictator Mugabe has destroyed their economy seizing their agricultural ,industrial and last year started to do the same to mines. In the process he devastated their tax yielding base, leading to many of the populace starving. In desperation he approached the INTERNATIONAL MONETARY FUND for a loan to get moving again. The IMF has imposed conditions that have to be met before they grant the loan, one of which is that they allow free enterprise and stop interfering in mining. It looks as if they are by-passing Mugabe and allowing the mines to develop and produce profits again. Great news !
See Barry's choices page 2 and 3 in side-bar.
SAEE NAOMI'S CHOICES PAGE 1 AND 2
