Mining Firms in South Africa Move Toward Mechanization

With the memory of a protracted labor strike in South Africa's platinum sector still fresh, mining companies are looking to cut their losses and lessen future constraints. Anglo American Platinum, the world's largest single producer of the precious metal, is looking for buyers for its more labor-intensive mining operations, shifting its focus toward operations with greater mechanization that are less affected by South Africa's labor issues.

Other platinum and gold mining companies are likely to follow suit. Low global platinum prices affected the platinum sector, and this year's profits for major mining companies in South Africa were swept away during the five-month strike by the Association of Mineworkers and Construction Union. The perceived inability to reform labor and energy costs in South Africa will lead to a transition in the coming years for platinum and similar mining sectors.