By THE AFRICA BAZAAR Staff Writer
Anglo American, one of the world’s largest platinum producers, said it is reviewing its Rustenburg operations in South Africa and may sell some of its business assets in the country.
The company, headquartered in the U.K. and listed on the London and Johannesburg stock exchanges, said it was hit by the five-month strike and confirms that due to the industrial action, its total loss in platinum production has amounted to 423,904 equivalent refined platinum ounces at the time of signing, equating to approximately R11.277 billion of lost revenue at current prices.
Analysts say a painful restructuring is needed by the industry in South Africa, and the loss was inevitable, on top of 24 billion rand that the industry lost during the strike. If Anglo American sell some of its assets in South Africa, other miners might follow its example, they say, which could mean fewer jobs for low paying workers and it would ultimately impact the South Africa’s economy.
Speaking after the labor contract was signed last week, Anglo American Chief Executive Chris Griffith said the entire process has been challenging for all parties involved, but was happy a resolution was reached.
“It has been a long and difficult journey but we have reached a reasonable outcome for all parties. However, the protracted strike has underlined broader issues facing the industry, its workforce and mining communities. We are committed to working with stakeholders to find solutions to address these issues and to deliver sustainable benefit for all involved,” Griffith said.
Copyright© 2014 ImeK Media, LLC. All rights reserved.