“It’s extremely unbelievable that you simply’re going to see materials funding in new PGMs (platinum group metals) manufacturing in South Africa,” Muller mentioned on a media name.
Impala, which has mines in South Africa, Zimbabwe and Canada, is curbing new funding after headline earnings within the yr by means of June 30 plunged 87% to 2.4 billion rand ($135.4 million).
Impala has additionally shortened the lifetime of its Canadian palladium operations as a consequence of a droop in costs and Muller mentioned traders have been balking at spending on new mines, which take as many as 20 years to construct.
Platinum, of which South Africa is the world’s prime provider, and palladium costs will proceed to hover beneath $1,000 an oz this yr as a consequence of overstocking, in keeping with a Reuters ballot.
Platinum was buying and selling round $940.85 an oz and palladium at $946.16 on Thursday.
Platinum miners are sure by antitrust guidelines which prohibit them from voluntarily slicing output to stimulate costs, Muller mentioned.
“We’re not (as an business) able the place we are able to sit round a cigar desk and agree to chop manufacturing in an effort to rebalance the market,” the CEO mentioned. “That’s the dilemma we sit with.”
The business’s plight additionally displays “the long-term state of electrification (of autos)”, Muller mentioned.
“I’m not satisfied that any shareholder or firm goes to see a transparent and enticing return for improvement in new belongings,” he added.
Impala will place its Two Rivers venture on “care and upkeep” after halting a deliberate 5.7 billion rand funding, along with spending curbs on the North Hill venture in Zimbabwe the place a $134 million funding was initially deliberate, and job cuts in South Africa.
($1 = 17.7210 rand)
(By Nelson Banya and Felix Njini; Enhancing by Helen Popper and David Holmes)