How is South Africa Losing Money on its Dominance in Platinum?

Benjamin Cox |

Benjamin begins by discussing how only South Africa can lose money while having such dominance in the platinum market. They, along with Russia, control most of the world’s platinum, yet still operate at a loss and do not economically exploit their monopoly despite the world’s fundamental need for platinum. Most of this is because of their “use it or lose it” policy. If they were able to ration the global supply of platinum, their profits would increase, likely without the international community caring. Benjamin calls on South Africa to drop their “use it or lose it” policy, artificially increase demand, and watch profits soar. This will lead to the country being able to afford things like power upgrades and higher wages for mine workers.

 

 

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