This Wall St Journal video reports on the fact that many gold mines in South Africa are not able to operate with gold prices at or below recent levels.
As we recently recounted here on the blog, labor unrest and demands from the mining unions in South Africa for the government to forbid the mining companies to lay off workers are running headlong into a very difficult economic reality. To exacerbate the situation, now some labor leaders are calling for nationalization of platinum and gold mines.
Many gold and platinum mines in South Africa may soon be idle. The question is, will the stoppage be voluntary or not.