Business Day
*Review looks at options for Anglo American Platinum*** *Allan Seccombe, Business Day, Johannesburg, 22 October 2012*A BUSINESS review of Anglo American Platinum (Amplats) is still on track for completion this year, Cynthia Carroll, chairwoman of the world's largest platinum producer, said on Friday.
Amplats is 80% owned by Anglo American, of which Ms Carroll is CE. Its mines around Rustenburg and those mines north of the Pilanesberg nature reserve have been shut due to illegal strikes, which prompted the company to fire 12,000 workers and expedite wage talks to end the labour unrest.
Amplats said at the beginning of the year it was conducting a thorough review of its business to optimise its portfolio, which includes 12 mines, 12 concentrators, seven joint ventures --- mostly with smaller, empowerment companies --- and a workforce of 56,000. The review studies the entire business --- from mining to marketing --- and nothing is off the table when it comes to the options Amplats may consider, Ms Carroll said. She stressed, however, that Anglo had no intention of selling or spinning out the company.
The review was initiated because the market was oversupplied with platinum and prices were weak.
"Whatever we do requires a lot of engagement. We're still on track to share with the market our findings and conclusions towards the end of the year. The situation as it has been developing has caused us to reflect even further on how we deliver this," Ms Carroll said.
There is speculation in the market that Amplats took the opportunity of lay off workers at its Rustenburg mines in the illegal strikes rather than waiting for the conclusion of the review process, which many analysts expect to recommend the suspension or sale of loss-making shafts.
Ms Carroll denied this. "We did not create illegal strikes or create an environment where people's lives were put at risk," she said.
"We do have a platinum review and what we are working towards is creating a business that is competitive, profitable and sustainable in terms of what we can do in the communities and how we can support, on a long-term basis, employment," she said.
"It is unfortunate this illegal strike has happened when it has, but that's the way it goes."
The review has not been derailed by the strikes, which spilled over from other companies into Amplats on September 12, culminating in the dismissal of the workers who refused to return to work on October 2. The strike has cost Amplats at least R700m in lost revenue.
Amplats took a harder line than Lonmin and Impala Platinum because it felt the strike was not related to unhappiness over wages or living conditions. The miner offered workers a bigger remuneration package than its peers so there was no justification for the strike, Ms Carroll said.
*From: http://www.bdlive.co.za/business/mining/2012/10/22/review-looks-at-options-for-anglo-american-platinum*
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