The world's no. 1 platinum producer has spun off an internal fund and invested $100 million in a new venture capital fund
Amplats Mining News
The announcement is the last of a string of difficulties Anglo has faced with the iron ore mine, which was expected to produce 16 million tonnes this year, but that will now generate just 3 million tonnes.
Amplats' investment stance highlights the fragile state of platinum mining in South Africa.
Move aims to curb unrest around Anglo American's most profitable platinum mine — Mogalakwena.
Toronto-based Atlatsa Resources (TSXV:ATL) has made good on its stated intention to shut its Bokoni platinum mine in Limpopo province, South Africa.
The miner reported broadly higher output in the fourth quarter across all divisions, except for copper, which suffered from lower grades and strikes.
Consolidation in South African's platinum mining sector continued on Friday with Lonmin's decision to buy Amplats' stake in the Pandora platinum mine.
Anglo American Platinum forced to stockpile concentrate and shut down smelter in South Africa responsible for one fifth of its refined platinum output.
Only last month, the South African miner announced it was postponing all investment in new or replacement capacity until at least 2017
Supply for the year, however, is expected to increase by 9% to 7.91 million ounces, owing to the recovery in the country’s output following strikes in 2014, as well as increased platinum recycling.
The country had introduced the levy on raw platinum exports in January, aiming to encourage local processing of the metal.
Anglo American’s platinum unit cited dark outlook for the sector as main reason for the cuts.
The incident happened when South African police allegedly clashed with protesters near Atlatsa Resources’s Bokoni platinum mine.
The firm became the first major mining company to openly accept the toll that slumping commodity prices are taking on the global industry.
The miner shed over 3.7% after two of its business divisions — Amplats and Kumba — warned they expected full-year earnings to shrink more than previously flagged.
Platinum output fell by nearly 40% as a consequence of a more than three-month strike over pay in the sector South Africa.
"We are not happy," said CEO Mark Cutifani.
He was killed after police fired rubber and stun grenades bullets to disperse a crowd of protesters.
Cutifani said the firm has identified three "buckets" from which it plans to extract about $3.9 billion of extra earnings.
Amplats' main union obtained permission for a legal strike two weeks ago, after exhausting mediation procedures.
Workers at Northam Platinum put down their tools. Others may follow.
Impala Platinum Holdings Ltd. (Implats) and Anglo American Platinum (Amplats) operations to be affected.
Anglo's Collahuasi copper mine more than doubled output to 63,600 tonnes, way above analysts’ expectations.
Strike cost Anglo American Platinum more than 40,000 ounces in lost production, or $100 million in lost revenue.
Says it won't back down until company abandons plans to fire 3,300 workers.