This case deals with the problems that Platmin faces as it heads toward full production at a new opencast mine in the Pilanesberg region in South Africa. Platmin is caught in an exceedingly challenging situation that is affecting the utility of the operation: the principal issue is the time of the production - investment in mining is typically heavy in the beginning, but payback of loans is usually significant, when the mine starts creating. Any delay in generation has an exaggerated effect on the practicality of the mine the payback period and, by extension. The second important issue is the economic slowdown, which has seen the amount of platinum decrease substantially; yet, this may help Platmin because it is a low-cost producer, and the downturn has led to some opponents leaving the industry or mothballing businesses which are not feasible at the current platinum price. On the other hand, while Platmin is seeing a shakeup in the business, pressures are being experienced by it on its margins, and this also has an effect on its capital backing.
Platmin Mining Managing Your Stakeholders in Developing Economies case solution
PUBLICATION DATE: June 23, 2011 PRODUCT #: W11237-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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