Johannesburg, South Africa — 27 November 2012 – 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 000oz of platinum worth over US$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.
Miningmx reports that if the upcoming 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 told Reuters the review would be presented to the 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.
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 US$1 604 an ounce.
Source: Miningmx. For more information, click here.