Bloomberg News

Amplats Holds Talks With South Africa on Output-Cut Proposals

January 18, 2013

Anglo American Platinum Ltd. (AMS), the world’s biggest producer of the metal, and South Africa’s mines department are in talks about the company’s proposal to idle four shafts, which may result in as many as 14,000 job cuts.

Amplats, as the Johannesburg-based platinum miner is known, held discussions with the Department of Mineral Resources yesterday, it said in a statement. Chief Executive Officer Chris Griffith and Mines Minister Susan Shabangu led the meeting, it said.

“We welcome the opportunity for continuing engagement with Minister Shabangu and her team in order to reach our shared objective of creating a sustainable, competitive and profitable platinum business,” Griffith said.

Amplats, which is controlled by Anglo American Plc (AAL), said Jan. 15 it plans to cut 400,000 ounces of platinum production a year, or 7 percent of global output, to increase profitability. Shabangu said the government could revoke mining licenses owned by the miner’s parent if it continues with its plans.

The shares rose as much as 4.6 percent, the most in more than a week, to 467.75 rand in Johannesburg. They were 2.7 percent higher at 458.92 rand by 10:57 a.m.

The talks will take place over the next 90 days and are in addition to the consultations on possible dismissals taking place under conditions set in the Labour Relations Act.

To contact the reporter on this story: Jaco Visser in Johannesburg at avisser3@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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