Anglo American Platinum is continuing with the repositioning of its portfolio in line with recent statements and will focus efforts on fewer high yielding sites ensuring that repositioning the portfolio will create a more profitable and sustainable business.
“In line with Anglo American’s strategy, we will be disciplined with our deployment of resources to focus on the assets that provide us with the most value accretive options,” says CEO, Chris Griffith.
Operational performance at Mogalakwena remains a highlight, with the business improvement plans delivering sterling results. Average daily tonnes mined at Mogalakwena for Q4, 2014 increased to 297 tonnes, a 79% increase compared to the average daily tonnes mined in Q1, 2013.
The increase in production for 2014 and expected increase for the next two years is due to:
- The commencement of production from Styldrift, the joint venture with Royal Bafokeng Platinum.
- An anticipated increase in purchase of concentrate from third party projects.
- Productivity improvements at their own production areas.
The company is expected to deliver 1.8 million ounces this year which is at the upper end of earlier expectations – this despite the difficulties in the labour environment.
The following three years will see an upper limit reached of 2.4, 2.5 and 2.6 million ounces respectively.
Selling struggling assets
The disposal of struggling assets is a key part of the portfolio restructuring and the disposal process for Union and Rustenburg are underway. Pre-marketing for Union has commenced and the company is finalising preparations for Rustenburg as a sustainable and standalone business.
“With the majority of the restructuring work complete, our focus remains on repositioning the portfolio. We have a world-class portfolio of resources to enable this, and have started the process of exiting assets that do not fit our portfolio as well as improving the performance of the assets we plan to retain,” Griffith concludes.