Strike-hit Amplats warns of restructuring

Johannesburg - Mining giant Anglo Platinum (Amplats) [JSE:AMS] warned Monday that a nearly month-long strike at its South African mines could lead to further restructuring, raising the spectre of more job losses.

The world's top platinum miner said its strike-hit Rustenburg and Union mines, in the country's north-western and northern regions, were "in the most marginal financial position".

"If the industrial action continues for much longer, we cannot rule out the need for further restructuring to ensure the long term sustainability of those mines," said spokesperson Mpumi Sithole.

Job cuts

The company did not specify what measures could be taken, but before the current strike the company had already announced job cuts running into the thousands.

The firm claimed the strike over wages, which started on January 23, was costing about R100m or 4 000 ounces of platinum each day.

Talks between the company and the Association of Mineworkers and Construction workers (Amcu), which represents tens of thousands of striking workers have so far failed to end the dispute.

R12 500 wages

Workers are demanding the doubling of their monthly wages to R12 500 and have so far rejected an initial offer of least 7% each of the next three years.

In an interview with Business Day newspaper, chief executive Mark Cutifani raised concern about the future of Rustenburg mines.

"Until we get back to work and get the things up and running probably, I'm not sure they've got any future," he said.

"It can only end badly for employees and that's the thing that keeps me awake at night."

Way forward

According to the paper, the struggling mines could be separately listed, folded into a black empowerment firm or sold.

Still recovering from a crippling 2012 strike wave, the company last week reported a loss of R568m ($51.2m) from a loss of RR6.4bn in 2012.

Last year the company, which is 80% owned by British-South African group Anglo American, embarked on a massive restructuring scheme that affected around 7 000 jobs after initially eyeing double the cutbacks.

The firm later said it had reduced the retrenchments to 3 300, then announcing that the workers had instead been given voluntary separation packages.