The platinum industry is continuing to struggle with the effects of the strong rand, according to one of South Africa's leading economists.

Roger Baxter, chief economist at the Chamber of Mines, told Mineweb in an interview that the long-term trajectory of the rand was now becoming an increasingly pertinent issue for mining firms.

While acknowledging the overall strength of the platinum industry, Mr Baxter noted that the rand was impacting on the launch of new projects.

"The stronger rand has definitely had huge implications over the last two years in particular, where we've seen significant portions, even in the platinum group metal sector, where new projects have become less viable than they were - and that's really affecting the ability of the industry to develop projects," he said.

However, Mr Baxter also emphasised the continuing level of investment in the sector, identifying a strong level of capital investment in the mining industry as a whole, with platinum a key driver in this.

The economist said that while the rate of job creation in the pgm sector might dwindle as a result of the rand, it was buoyed by "significant investment in platinum projects" that could ultimately ride out the problems posed by the strength of the rand.