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.
Anglo Platinum Mining News
The miner reported broadly higher output in the fourth quarter across all divisions, except for copper, which suffered from lower grades and strikes.
Only last month, the South African miner announced it was postponing all investment in new or replacement capacity until at least 2017
Anglo American’s platinum unit cited dark outlook for the sector as main reason for the cuts.
The firm became the first major mining company to openly accept the toll that slumping commodity prices are taking on the global industry.
Workers desperate after three months without pay loot shopping mall and set community buildings alight.
Platinum output fell by nearly 40% as a consequence of a more than three-month strike over pay in the sector South Africa.
PGM prices gain after world number two producer Implats says it can only supply customers to end March, but strikes could drag on into May.
"We are not happy," said CEO Mark Cutifani.
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.
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.
Less than 20% of the company's miners showed up for work today.
After the world's largest platinum producer announced massive lay-offs and plans to scale back annual production by 350,000 ounces.
It will dismiss around 3,300 workers and redeploy another 1,600.
He also cut down his executive team and said at least half of Anglo’s $17 billion project pipeline will be shelved or cancelled.
The platinum giant is, however, cutting at least 6,000 jobs.
At least 2,400 workers were being held down in the mine by their own colleagues.
Anglo American Platinum may cut as many as 14,000 jobs and mothball two mines.
Workers returned to work Wednesday morning after a one-day strike, but company lost 3,886 ounces of platinum production.
The negative figures come comes after a 2011 profit of more than $1 billion, which highlights the grim financial situation Amplats currently faces.
In a joint statement with the Department of Mineral Resources and unions, the miner has agreed to postpone any decision for 60 days.
The world’s top platinum company is reportedly engaged in negotiations with union leaders and the government and it is expected to release a formal announcement on whether talks had succeeded in saving jobs later today.