Brazilian mining project
8 Mar 20190 comments
The topical interest in Platinum Group Metals (PGMs) has, for several years, regularly involved bad news from African mining activities; and 2017 is no exception. Actually, the position has worsened. First because investors now understanding that South African and Zimbabwean mines are facing a bleak future of non-profitability. Secondly because of increasing demands for pay rises from the workforce. Therefore, any previous hope for the future seems to have vanished.
So, what other solutions are investors considering?
Until recently, the only geographic locations known for the existence of palladium or platinum mining were South Africa, Zimbabwe, Russia and Canada. However, that is no longer the case. Now, a Brazilian mining project is under development! This is actually possible with AIM – The Alternative Investment Market – helping to raise $2million to make the project viable.
Considered a project described as the “best platinum and palladium opportunity in the South Hemisphere”, nevertheless the bet sounds a little daring, with the Brazilian mine the first to be found on the South American continent. Only in the event of an ongoing degradation in South Africa would it seem sensible for investors to bring capital and mining know-how to South America.
So, is it a good idea to invest in South America for palladium and platinum mining activities?
If there is no other discovery of palladium or platinum mines in South America, or at least in Brazil, the answer is a likely “NO” Investors would not invest in equipment and workforce training for a country or area with a single mine, unless it could be highly profitable - then it could be a case of “Let’s Go!”
To be continued…