Share

Plan to sell Amplats mines shocks union

Johannesburg - Anglo American Platinum's plan to sell some of its mines will lead to job losses, the Workers' Association Union (Wau) warned on Tuesday.

"We are deeply shocked and saddened by the announcement. This will lead to job losses," said general secretary Elifas Ngoepe.

He said the announcement came at a time when mineworkers were trying to recover from the five-month strike.

"This will have a devastating effect on workers who are trying to find their footing after the strike and now they face the possibility of losing their jobs."

Amplats [JSE:AMS] announced on Monday that it planned to sell its Rustenburg and Union mines.

"The intention to exit Union mine [in Limpopo] and concentrators has already been announced, and it has now been concluded that Rustenburg [in the North West] and our Pandora JV asset will be better placed in the hands of new owners who would be able to provide the focus and capital for the operations to have a successful future," CEO Chris Griffith said in a statement.

The company broke the news in a statement reporting vastly reduced profits for the six months ending June 30, 2014.

Its headline earnings decreased to R157m compared to R1.3bn in 2013; profit attributable to shareholders was R429m or R1.64 per share and headline earnings were R0.60 per share.

Griffith said the dominant feature of the first half of the year was the strike during which 40% of Amplats's production was not in operation.

Operations unaffected by the strike showed stable and improved performances," he said. Since the strike ended the company was rebuilding relationships with employees and ramping up production.

Members of the Association of Mineworkers and Construction Union (Amcu) at Amplats, Impala Platinum [JSE:IMP], and Lonmin [JSE:LON] downed tools on January 23, demanding a basic monthly salary of R12 500.

The strike ended on June 24 when they agreed to a three-year deal that would increase their salary by R1 000 in the first two years of the agreement and R950 in the third year.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.01
-0.4%
Rand - Pound
24.12
-0.0%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.38
+0.3%
Rand - Yen
0.13
+0.4%
Platinum
901.05
-0.2%
Palladium
999.00
-0.7%
Gold
2,150.65
-0.5%
Silver
24.88
-0.7%
Brent-ruolie
86.89
+1.8%
Top 40
66,017
-0.4%
All Share
72,221
-0.3%
Resource 10
53,216
-0.2%
Industrial 25
99,605
-0.9%
Financial 15
16,696
+0.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders