Amplats jobs on the line
Anglo American Platinum says it could retrench up to 2 000 workers at its Rustenburg Platinum Mines unit as it seeks to stem cash bleed.
|||Johannesburg - Anglo American Platinum says it could retrench up to 2 000 workers at its Rustenburg Platinum Mines unit as it seeks to stem cash bleed.
The mines that will be affected during the restructure are its Union Mine joint venture and the Twickenham Project. These two mines fall outside of the deal announced last year in which Sibanye would buy several of Amplats Rustenburg operations - Bathopele, Siphumelele and Thembelani - for R4.5 billion.
In a statement issued on Friday, the miner says it has started a consultation process with unions over the retrenchments. It notes, despite implementing changes, the “economic outlook remains uncertain and further intervention is necessary to ensure a sustainable long term outlook for Anglo American Platinum and all its stakeholders”.
Amplats says it has considered a number of alternative options, and will now restructure to make sure Union Mine so it is cash positive and sustainable, while Twickenham Project will be placed on care and maintenance.
“This proposed restructuring of Union Mine is necessary irrespective of whether or not a sale of the operation takes place in due course.”
Amplats says some 2 000 jobs in total will be impacted by the proposed restructuring at Twickenham and Union Mine.
Read also: Amplats to cut 1 000 jobs
“The final number will be determined after the consultation process. A number of retrenchment avoidance measures will be undertaken in an attempt to reduce the number of impacted individuals, including offers of voluntary severance packages, early retirement and opportunities for redeployment across the company.”
SA’s mining sector has been hard hit by a commodities rout and thousands of jobs could be on the line.
Amplats has previously said it continues to manage its business for the current commodity pricing environment.
“At Union mine, there have already been significant restructuring efforts to reduce overhead and operating costs and ensure the sustainability of the mine. During 2014, the Union north and south mines were consolidated into one mine, and in 2015 the Union south declines closed, reducing annual production capacity by 80koz to 140 koz.”
The company has also delayed all expansionary project decisions until at least 2017.
Read also: Amplats sees more price pain
“As a result of this development, the Twickenham Project was suspended in 2015 and the operation restructured to reduce cash losses, including placing one of its two shafts on care and maintenance and reducing the number of independent contractors. However, the Twickenham Project continued to make a substantial cash loss in 2015 and such losses cannot be sustained by the company,” it says.
FD Ian Botha says “Anglo American Platinum has no choice but to manage the business for the current environment and we need to take decisive action to ensure the sustainability of the business. Having considered all alternative options, it is with regret that the Company finds itself in a position where further restructuring now needs to take place, which will impact a number of our employees. We will continue to engage with our key stakeholders and work together to find the best possible solutions for those who will ultimately be impacted.”
IOL