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African Rainbow Minerals to cut jobs as profits halve

Mar 13 2016 11:17

(iStock)

Company Data

IMPALA PLATINUM HOLDINGS LIMITED [JSE:IMP]

Last traded 26
Change 0
% Change -1
Cumulative volume 317111
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

ANGLO AMERICAN PLATINUM LIMITED [JSE:AMS]

Last traded 471
Change -6
% Change -1
Cumulative volume 13441
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

AFRICAN RAINBOW MINERALS LIMITED [JSE:ARI]

Last traded 127
Change -1
% Change -1
Cumulative volume 16831
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Johannesburg - Diversified mining group African Rainbow Minerals [JSE:ARI] (ARM) said on Friday its first-half profit halved due to sharply softer commodity prices, prompting layoffs and cost cuts to stay afloat.

Headline earnings per share, a measure that strips off certain one off items, in the six months to December reached R2.33 from R4.73 a year earlier.

ARM, which has interests in platinum, iron ore, coal, copper and gold saw lower prices in all of its commodities except for chrome.

"ARM has responded proactively to the commodity price downturn and has implemented operating and capital cost reduction initiatives at all its operations," the company said in a statement.

The company operates joint ventures with Anglo American Platinum [JSE:AMS], Assore [JSE:ASR], Impala Platinum [JSE:IMP], Glencore [JSE:GLN] and Vale.

ARM cut planned spending for the first half of 2016 by 15% to R1.4bn mainly from curtailments in the ferrous metals Black Rock Project, which is its most capital intensive venture.

The company said it would cut jobs at its platinum mines Modikwa and Nkomati, Beeshoek iron ore mine and Khumani chrome mines but did not say how many positions were on the line.

All of these mines are in South Africa, where job cuts are a thorny political issue against the backdrop of an unemployment rate of around 25% and glaring income disparities.

The Lubambe copper mine in Zambia, a joint venture with Vale, was placed under review to lower cash requirements and preserve its resource value.


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african rainbow minerals  |  job cuts  |  mining
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