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Anglo American shares slide

Jan 16 2013 10:57 Reuters
AngloGold Ashanti

Amplats miners. (Sapa)

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Johannesburg - Anglo American [JSE:AGL] shares are down 4% in early trade, hit by worker unrest at its platinum mines which analysts warn could hamper an overhaul effort aimed at reversing losses there.

Anglo laid out a blueprint for its Anglo Platinum [JSE:AMS] arm on Monday, but the plan to close two mines and sell one could hit 14 000 jobs, and has been met with resistance from both the government and unions.

Anglo's Kumba Iron Ore [JSE:KIO] unit has separately warned its 2012 profit likely fell by a third, hit by lower prices and an illegal strike. 

"We are of the view that the conclusion of the Anglo Platinum review may leave investors unimpressed, and we think that the discontent of the South African government and other key stakeholders is likely to undermine the magnitude of Anglo Platinum's restructuring," Societe Generale says in a note, downgrading Anglo to sell from hold.

At 08:40 GMT, Anglo shares were down 3.95% at 1,883.5 pence, underperforming a 1.6% drop in the broader mining sector.  

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