Job cuts on cards in mine shake-up, says Amplats

Johannesburg - The world's No 1 platinum producer Anglo American Platinum [JSE:AMS] plans to overhaul a number of its South African mines to make them more profitable in the face of depressed prices.

Amplats, recovering from a sometimes violent five-month strike last year, and its rivals face a tough environment with prices near six-year lows below $1 100 an ounce and rising power and labour costs.  

The Anglo American unit [JSE:AGL]said in a statement that the move could lead to up to 420 job cuts, mostly managerial and supervisory positions, and did not include its Rustenburg and Union mines which are earmarked for disposal.

Focusing on such positions avoids a potential confrontation with the militant Association of Mineworkers and Construction Union (Amcu), which led last year's historic stoppage and whose members have downed tools before to oppose lay-offs.

Amplats said the restructuring would include "the consolidation of mines with adjacent concentrator operations: Tumela Mine, Dishaba Mine and Amandelbult Concentrator will be consolidated and redesigned into the Amandelbult operation."

It also said its Mogalakwena Mine and Mogalakwena Concentrator would be folded into one operation. Three regional centres will also be closed.

The market is waiting to hear what Amplats plans to do with its labour-intensive Rustenburg and Union operations as it turns to more mechanised mining.

A company and banking source told Reuters earlier this month it was likely to float the mines rather sell them because the offers it had received were too low.