See More

Zuma: Govt not threatening mines

Jan 23 2013 16:02 Reuters

The government is not threatening mines with licence reviews, said President Jacob Zuma. (Picture: Sapa)

Company Data

Anglo American Plat Ltd [JSE:AMS]

Last traded 304
Change 6
% Change 2
Cumulative volume 173911
Market cap 0

Last Updated: 01-04-2015 at 02:04. Prices are delayed by 15 minutes. Source: McGregor BFA


Last traded 21
Change 0
% Change -1
Cumulative volume 443462
Market cap 0

Last Updated: 01-04-2015 at 02:04. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Unions must act on Amplats job cuts

CCMA pledges fair deal in Amplats talks

Harmony, labour work to end crisis

Under mining SA

All quiet at Amplats mine

Anglo 'stole our money' - Mantashe

Davos - The government needs to "engage" with platinum and gold mining firms about proposed shaft closures and mass lay-offs and is not threatening them with licence reviews, President Jacob Zuma said on Wednesday.

"We are not making any threat to anyone. We are saying: 'Let us come together, let us discuss. This affects all of us. It does not affect companies only,'" he told Reuters on the sidelines of the World Economic Forum in Davos.

"I don't think we should say either government should make unilateral decisions - for example the licenses - or that companies should have unilateral power to say 'Because our company is in trouble, without consulting anybody, just take action'," he said.

"We are a constitutional democracy. We must engage."

Anglo Platinum [JSE:AMS] (Amplats) announced that it planned to stop production at four of its shafts in Rustenburg, which could result in the loss of 14 000 jobs, and to sell a mine which was considered unsustainable.

The ANC strongly condemned amplats plans to cut jobs as it restructures its strike-hit operations.

"This decision is cynical and dangerous in the extreme," said ANC spokesperson Jackson Mthembu in a statement.

"If Anglo persists with the retrenchments, it's a window for government to take those mines and nationalise them," Amcu president Joseph Mathunjwa said.

"This is not a reprisal, for example, against the strikes at the end of last year. This process started at the beginning of 2012 and it was to address the fundamental and structural changes to our businesses that have made our operations unprofitable," Anglo Platinum CEO Chris Griffith said on a conference call.

"This not a knee-jerk reaction to unions, this is not a short-term response to an economy that may improve in a month or two's time. The company has to take these drastic and significant actions to save the company and the employment of an additional 45 000 people."

The Amplats announcement came after Harmony Gold Mining Company [JSE:HAR] said it was suspending operations at its Kusasalethu mine in Carletonville,  to review operations after several illegal strikes. It planned to retrench about 6 000 workers.

Harmony met with unions to discuss the planned lay offs but said Kusasalethu will remain closed until an agreement has been reached, and all the conditions of re-opening have been agreed upon and committed to by all the unions and other stakeholders involved.

ANC secretary general Gwede Mantashe said the government had no plans to nationalise unsustainable mines.

Mantashe said the ANC had made a proposal to the mineral resources department that shafts which had become unsustainable, or been "mothballed", be put up for auction.

The mining sector employs 500 000 people and accounts for more than 6% of GDP but suffered the worst industrial unrest since apartheid in 2012, including the killing of 34 strikers at Lonmin's Marikana platinum mine by police in August.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

amplats  |  job cuts  |  wef  |  mines



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

This is the most expensive burger in the world!

You won't believe how much someone was prepared to pay for this burger!


Luxury living

Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!
These are the richest people on the planet!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote