Platinum Group Metals Ltd has suggested that companies across the board will be forced to abandon mining ventures if the platinum price continues to slump, Bloomberg has reported.

Platinum fell six per cent to $758.50 per oz on Friday (24th October), putting it at its lowest level for nearly five years and a huge 62 per cent down from the end of June.

Now the Vancouver-based company, which is looking to produce around 250,000 oz of platinum group metals per year in South Africa with Anglo Platinum, has explained that that it may have to close its project.

Chief Executive Officer Mike Jones told the news provider: "Everybody is in the same boat. The price is untenable.''

The platinum price has slumped over fears that the global economic crisis will sharply curb demand for the metal from automakers, who use it to help provide cleaner emissions from their vehicles.



Source:

Platinum Group Says Current Price Would Shut Down Mine Projects (24/10/08)
http://www.bloomberg.com/apps/news?pid=20601082&sid=ai38OJqzVKLc&refer=canada