Business

Amplats Rustenburg mine not in good financial position

Sapa

As a three-month long strike by miners affects the platinum belt, Amplats says its Rustenburg operations are in a marginal financial standing.

Amplats is reportedly seeking a buyer for its mine in the North West. (Madelene Cronje, M&G)

Anglo American Platinum's (Amplats's) Rustenburg operations are not in a good financial position, the company said on Monday.

"The Rustenburg operations are those that are in the most marginal financial position in the platinum group, we cannot rule out the need for further restructuring to ensure the longer-term sustainability of those operations," said Anglo American spokesperson Mpumi Sithole.

The company is reportedly seeking a buyer for its Amplats mine in the North West.

Chief executive officer Mike Cutifani indicated that the Rustenburg operations were no longer the company's core asset, according to Business Day on Monday.

The platinum belt has been crippled by a three-month long strike by members of the Association of Mineworkers and Construction Union (Amcu).

Salary increase
The Amcu members at Lonmin, Impala and Amplats operations in Rustenburg, North West and Northam in Limpopo went on a strike on January 23 demanding a minimum monthly salary of R12 500.

They have rejected the 9% salary increase the companies have tabled.

The companies also rejected the unions' revised demand that the R12 500 should be phased in over a period of four years. – Sapa

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