Johannesburg (Platts)--29Jan2013/720 am EST/1220 GMT
Anglo American Platinum's decision to postpone the retrenchment of 14,000 workers is not a sign that it is giving in to pressure from the South African government, Amplats CEO Chris Griffith said Tuesday. On January 14, the world's largest platinum producer announced it will shut four loss-making shafts in Rustenburg, 122 km (76 miles) northwest of Johannesburg for long-term maintenance, disinvest in the Union mine, and lay off workers. This means its capital expenditure will be cut by 25% and production by 400,000 oz. Amplats' announcement on Monday that it would reconsider its plans has been seen by the industry as a climbdown. There was a raft of criticism from workers' unions, the ruling African National Congress and the government as well as threats from Department of Minerals and Resources to review and cancel the company's mining rights. Griffith said Tuesday in Johannesburg that the company was not in any way backing down, but following due process. Article continues below...Metals Daily now available on Platts Market CenterPlatts Metals Daily is now available for subscribers on Platts Market Center, an interactive website featuring Platts news, market commentaries, proprietary price assessments and archived content, as well as the daily PDF. PMC will also make available several key US benchmark assessments to subscribers earlier in the US day than with the current PDF-only delivery mode. PMC also includes archived proprietary prices and a custom graphing feature. PMC offers a mobile version viewable on PDAs and smart phones. For further information on registration, please contact Customer Care: support@platts.com
Anglo American Platinum's decision to postpone the retrenchment of 14,000 workers is not a sign that it is giving in to pressure from the South African government, Amplats CEO Chris Griffith said Tuesday. On January 14, the world's largest platinum producer announced it will shut four loss-making shafts in Rustenburg, 122 km (76 miles) northwest of Johannesburg for long-term maintenance, disinvest in the Union mine, and lay off workers. This means its capital expenditure will be cut by 25% and production by 400,000 oz. Amplats' announcement on Monday that it would reconsider its plans has been seen by the industry as a climbdown. There was a raft of criticism from workers' unions, the ruling African National Congress and the government as well as threats from Department of Minerals and Resources to review and cancel the company's mining rights. Griffith said Tuesday in Johannesburg that the company was not in any way backing down, but following due process.
Article continues below...
Platts Metals Daily is now available for subscribers on Platts Market Center, an interactive website featuring Platts news, market commentaries, proprietary price assessments and archived content, as well as the daily PDF. PMC will also make available several key US benchmark assessments to subscribers earlier in the US day than with the current PDF-only delivery mode. PMC also includes archived proprietary prices and a custom graphing feature. PMC offers a mobile version viewable on PDAs and smart phones. For further information on registration, please contact Customer Care: support@platts.com
"This does not change anything in terms of retrenchments, they will happen," he added. "Given the seriousness of the situation in our loss-making shafts, lay-offs are inevitable but what all parties want is thorough consultation, which we also feel is important," Griffith said. Amplats' financial results, to be announced on February 4, will reflect a loss of Rand 1.5 billion ($165 million), he added.--Chris Bishop, newsdesk@platts.com--Edited by E Shailaja Nair, shailaja_nair@platts.com
Tweet
@PlattsMetals on Twitter