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The South African operations of Anglo American Platinum (Amplats) is embarking on a restructuring that could affect about 3,700 jobs as it battles to keep the lid on costs amid falling platinum-group metals prices, the company’s profit plunged by 71% last year.
The South African operations of Anglo American Platinum (Amplats) is embarking on a restructuring that could affect about 3,700 jobs as it battles to keep the lid on costs amid falling platinum-group metals prices, the company’s profit plunged by 71% last year. The miner is also reviewing contracts with 620 service providers. The prices of palladium and rhodium fell 37% and 58% in the year, respectively.
The restructuring decision has not been taken lightly, it’s very much a last resort, not least as the company recognises the unemployment challenges in South Africa and the socio-economic impact that the proposed restructuring may have on its people and the communities around, stated Craig Miller, the chief executive officer of Amplats.
The Johannesburg-based firm said its profit slumped to USD 741.81 million in the year ended Dec.31 compared to USD 2.6 billion in the previous year. Amplats slashed its dividend by 81%, to 21.30 rand per share. Still, Amplats said the payout is within its ratio of 40% of headline earnings. As part of the cost-cutting measures, Amplats is postponing planned projects at its Amandelbult complex.
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https://trendsnafrica.com/sas-impala-platinum-post-higher-profits-despite-covid-19/
https://trendsnafrica.com/anglogold-plans-to-sell-its-last-south-african-mine/
Amplats’ South African peers including Sibanye Stillwater have also announced plans to cut jobs due to the fall in metal prices. Anglo American stated that the group was considering deeper cost-cutting measures if market conditions did not improve. In December, Anglo American announced sweeping cuts to save about USD 1.8 billion by 2026.
