Anglo American Platinum said it plans to cut thousands of jobs at its South African mines after its profits fell 71%, Reuters reported on February 19.
In a statement, the Anglo-American company said it was embarking on a restructuring that could affect around 3,700 jobs at its operations in South Africa. The company is struggling to cut costs amid falling platinum group metals prices.
The decision to restructure was a difficult decision for the company, says CEO Craig Miller.
“This is more of a last resort; we recognize the challenges of unemployment in South Africa and the socio-economic impact that the proposed restructuring would have on the people and society of which we are a part.”Miller said on the conference call.
The Johannesburg-based company said its profits fell to $741.81 million for the year. Amplats cut its dividend by 81%. Palladium and rhodium prices fell by 37% and 58% respectively.
Amplats’ South African peers, including Sibanye Stillwater, have also announced plans to cut jobs due to falling metals prices.
Anglo American Chief Executive Duncan Vanblad said the group was considering deeper cost cuts if market conditions did not improve.
Source: Rossa Primavera
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