Platinum miners have been increasingly eyeing Zimbabwe as a possible new location to focus mining operations following the debilitating five-month platinum strike in South Africa, one that very nearly brought platinum producers to their knees.

The militant Association of Mineworkers and Construction Union in South Africa went on strike in February, demanding that Anglo American Platinum, Impala Platinum, and Lonmin more than double wages for entry-level workers laboring in platinum mines. The strike finally came to an end in late July, with the union securing an increase of 1,000 rand for the first three years for lower-level employees and wage increases of 7.5% to 8% for higher-ranked workers.

According to a website launched by platinum producers during the strike, the companies lost 24.1 billion rand because of the protracted labor action.

Continued strike action in South Africa, which has not only plagued the gold and platinum mining sectors but also extended to automobile production, cotton textiles and steel production, have put companies on edge, causing foreign investors to start considering other locales.

For platinum producers in particular, Zimbabwe has become an attractive alternative, seeing as it sits atop the world’s second-largest platinum reserves after South Africa. Several large platinum producers, including Impala Platinum, Aquarius Platinum and Anglo American Platinum, already operate in the country.

But the closing of Impala Platinum Holding’s Bimha mine in Zimbabwe – held by Implats’ Zimbabwe unit, Zimplats – points to one of the several difficulties of operating in Zimbabwe.

Impala Platinum said Aug. 20 that the mine had to be shuttered to protect the safety of its employees, following the collapse in July of a section of the mine’s underground operations.

“Over recent weeks, ground conditions have continued to deteriorate and as a consequence, it has been decided to withdraw employees in high-risk areas with immediate effect and to implement orderly closure procedures across the rest of the mine,” Impala said in a statement.

The Johannesburg-listed company said it could lose as much as 70,000 ounces of platinum production as a result.

Mine safety is not the only challenge facing international mining companies in the ‘rogue’ African state, however. Long-time ruler Robert Mugabe has been leaning heavily on platinum companies in recent months to cease exporting unprocessed platinum ore out of Zimbabwe to South Africa, in a push towards beneficiation – and all of the additional income generated therein – within the country’s borders.

He has ordered platinum firms to commit to the construction of smelters within Zimbabwe, with platinum producers expected to be processing in-country by the end of next year.