Anglo American Update re. Anglo American Platinum
OREANDA-NEWS. Anglo American plc draws attention to an announcement issued by Anglo American Platinum Limited, the text of which is set out below:
Anglo American Platinum concludes restructuring consultations
Anglo American Platinum Limited (“Anglo American Platinum” or “the Company”) has concluded consultations with key stakeholders and unions on the plans to restructure its business.
In January, the Company announced its proposals to reduce costs and reconfigure marginal operations following an extensive review of its business which commenced in February 2012. The review is aimed at restoring the Company's profitability to ensure its long-term sustainability and increase its competitiveness in the global platinum mining industry.
Following the consultation with the Department of Mineral Resources and recognised unions in a process facilitated by the CCMA, the Company will be proceeding with the implementation of its plans which are:
baseline production to 2.2 - 2.4 million Platinum ounces per annum in the short to medium term;
consolidating the Rustenburg operations into three operating mines by integrating the Khuseleka 2 and Khomanani 1 and 2 mines into the surrounding mines. Khuseleka 1 will remain operational. The rationalisation and reconfiguration of marginal operations will result in a reduction in production capacity of approximately 250,000 ounces per annum and by an additional approximately 100,000 ounces per annum in the medium term;
consolidation of Union North and South Mines into one mine. The disposal of the mine is still planned to take place in due course;
reducing overhead costs and improving efficiencies;
As previously communicated, the number of operational jobs that are affected is approximately 6,000. In addition, approximately 900 corporate and overhead employees will also be affected. However, the ultimate number of retrenchments will depend on the conclusion of the retrenchment avoidance measures; which include voluntary severance packages, early retirement, redeployments and the filling of internal vacancies.
Chris Griffith, Chief Executive Officer of Anglo American Platinum, said “We are at a critical stage of the process and this restructuring will be a crucial step to enable us to return to profitability and to focus capital allocations on our mines that are best placed to sustain the business and create employment opportunities over the long term.”
“A month's notice period for affected employees will commence on 1 September. We are very aware of the impact this process has on our employees and we are working hard to finalise the details of our Social Impact Mitigation Plan aimed at minimising the impact on employees and affected communities.”
“The implementation of our proposals will help us create stability for the business and we look forward to working constructively with all our key stakeholders during this time for the benefit of all. Once we have restructured the business, we expect to be in a better position to provide more secure employment for our employees and add the much needed value to all our key stakeholders,” he concluded.