Canadian miner Eastern Platinum (Eastplats) has put its Crocodile River platinum mine (CRM) on care and maintenance, suspending funds for the project in the wake of faltering global market.

The company has submitted a notice regarding curtailing of the project to the Minister of Mineral Resources of South Africa.

Eastplats has already undertaken scale-down operations with production to completely stop by the end of July 2013. The development is likely to affect 92% of CRM’s employees, who will either be laid off or terminated through mutual agreement.

Eastplats president and CEO Ian Rozier stated that BML’s temporary suspension is the best possible solution for the stakeholders as the company is not in favor of completely abandoning the project.

"We have been struggling through a perfect storm of increasing costs on all fronts and depressed metal prices," added Rozier.

"With ongoing labour unrest that continues to negatively impact productivity throughout the South African mining sector, the stagnant commodity market and rising costs, it has become impossible to justify continued production operations at this time."

Meanwhile, 7% of the total staff, under three union groups, has executed a settlement agreement with Eastplats, recommending full and final settlement of all the claims between the company and union members.