With the strikes spreading beyond the natural resources companies, worries over economic paralysis have brought the South African rand to a more than three-year low against the dollar.
Then on Friday, rating agency Standard & Poor's cut the country's credit rating by once notch, following rival Moody's downgrade of the country last month which had marked its first since the end of apartheid.
S&P made it clear that the move was motivated by the strikes affecting the mining companies – and they did not see this as a problem about to go away any time soon, as questions around the ruling party’s plans mount up.
South Africa's strikes have now affected some 28% of its platinum production or 17% of global production, according to the Deutsche team.
They believe that production losses have the potential to drive up the price of platinum so that it trades at a premium to gold. . .View Full Article