Amplats to release business review next year
26 Nov 2012 14:14 | Reuters
Anglo American Platinum, a unit of global mining giant Anglo American and the world's top producer of the precious metal, lost at least 191 000 ounces, worth over $300-million at current spot prices, to wildcat strikes which ended earlier this month at several of its South African mines.
More will certainly be lost as the operations slowly ramp back up to full production.
If the Amplats' review leads to job cuts it could further stoke social tensions on the platinum belt. Over 50 people have been killed this year in South Africa's labour violence, which has its roots in a vicious union turf war and glaring income disparities in the grim shantytowns that ring the mines.
Spokesperson Mpumi Sithole, confirming a report in Business Day, told Reuters the review would be presented to Amplats' board in January and made public shortly after that.
The review comes as the global mining group searches for a replacement for outgoing chief executive Cynthia Carroll.
Even before the strikes, part of a wave of deadly labour unrest that swept South Africa's mines this year, Anglo American was scrutinising its platinum operations as profits fell in the face of soaring costs and weak demand for the white metal used to build emissions-capping catalytic converters in automobiles.
South Africa is home to about 80% of the world's known platinum reserves and much of the industry is battling with falling profits.
But reduced South African supplies because of the strikes are lifting the metal's price and Nomura said last week in a research note to clients that the platinum price should climb with the profits and share prices of producers following.
The spot platinum price has gained about 15% this year and is currently fetching around $1 604 an ounce. – Reuters
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