HomeNewsAnglo American plans $4bn platinum mine sales

Anglo American plans $4bn platinum mine sales

Mining giant Anglo American is planning to dispose of its strike-hit platinum mines in South Africa in an effort to streamline its business by disposing of under-performing assets valued at US$4 billion.

Anglo American chief executive Mark Cutifani told Britain’s The Sunday Times that it has put some of its platinum mines in South Africa up for sale and has lined up South African investment bank RMB to run the auction.

The disposal programme was agreed by the board at a strategy meeting this month and could raise up to US$4 billion. In addition to South African properties, the company is reportedly considering selling its nickel assets in Brazil and copper mines in Chile.

This comes after the 5-month platinum strike in South Africa – the longest and costliest in the country’s history – had finally been resolved, with major platinum companies agreeing to increase the wages of workers. Over the course of the strike, Anglo American had lost R11.27bn from restricted production levels.

Anglo American external communication head James Wyatt-Tilby said: “We have been clear that a number of assets in the portfolio are unlikely to satisfy our stated return criteria and will be divested at the right time.”

Top South African bullion producer Sibanye Gold has been repeatedly hinted as the most likely buyer for Anglo’s mines in the platinum belt.

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