Analysts at Deutsche Bank have prompted further fears about the long-term impact of the rand on the platinum mining industry after downgrading leading industry player Lonmin.

The bank changed its appraisal of the UK-listed mining firm to "sell" from "hold" according to CBS, emphasising the potential problems of the rand.

The broker said that the rand is "wreaking havoc on platinum group margins", which had led to the decision.

Deutsche Bank also noted the problems of the recent smelter accident at Lonmin, which it said was not in itself likely to hamper production, but did raise "some doubt on assumptions for utilization rates and operating and capital costs".

The bank's warning about the effect of the rand on the platinum miner echoes similar sentiments aired by one of South Africa's leading economists in an interview with Mineweb yesterday.

Roger Baxter, chief economist at the Chamber of Mines, said the stronger rand had "definitely had huge implications over the last two years in particular", noting that platinum group metal projects were now "less viable than they were".