The growth and security of global platinum supplies are being threatened by government policies in two of the world's biggest producers of the metal, it has been claimed.

Debates around nationalisation of mines in South Africa and Zimbabwe's talks on indigenisation risk the sustainability of the global supply of the precious metal, Impala Platinum chief executive officer David Brown warned.

"The risk associated with future investment in South African mining has increased considerably as seen from the outside world because of dangers including nationalisation," he said during a speech in Johannesburg.

Mine operators in South Africa have to sell 26 per cent of their assets to black investors by 2014.

Last year, the African National Congress agreed to look at nationalising the mining sector after calls from the head of its youth wing Julius Malema.

Mr Brown noted that while the mining industry has not done all it could to achieve this, "nationalisation is not the answer".

He warned that the "wholesale nationalisation" of the industry would "undermine the country's economic base, especially if banks and land are next".

Impala, the world's second-biggest primary platinum producer, is looking to expand its Zimplats operations in Zimbabwe, which according to Mr Brown is also pursuing potentially damaging policies.

The country is currently debating a so-called indigenisation policy that would require mining companies to sell 51 per cent of their assets to local investors.

The Impala CEO suggested that it would be unfair for a firm to take all of the risk and own just under half of the profits.

Sources:

World platinum supply threatened by SA, Zim policies (29/06/11)

South African Demands on Mining Threaten Output, Impala Says (29/06/11)

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