The South African currency has broken the significant six rand level against the US dollar, amid growing concerns about the impact for the platinum mining sector.

On Friday the rand stood as high as R5.93 to the dollar, marking its strongest intraday levels for more than four years.

Experts noted the rise and added to warnings about the rand's impact on the domestic mining industry.

Goolam Ballim, chief economist at Standard Bank, told Mineweb that he expected the trend to continue, posing further difficulties for firms.

"The rand at current levels is bleeding the economy. You watch the press headlines over the coming months from the manufacturing point of view, and early 2005, earnings are going to be quite bloody, particularly for companies that have foreign affiliate income," he commented.

Almost all of South Africa's platinum firms, including world number one Anglo Platinum and number two Impala Platinum, have spoken of the effect of the strengthening rand, as revenues fall and smaller operations are jeopardised.

Last week Angloplat chief Ralf Havenstein spoke out about the effect of the rand, telling Business Report: "The biggest problem at the moment for us is the prediction of the rand, exactly where it is going and what that does to our decisions for projects.

"The problem is that the weak rand did create opportunities for additional exports and revenue for the country, and the strong rand is creating a situation where costs will have to be stringently controlled and my fear is that will lead to job losses."