Angloplat cuts 23% of workforce since 2008

I-Net Bridge | Mon, 08 Feb 2010 13:30

[miningmx.com] --ANGLO PLATINUM, the world's largest platinum producer, has reduced its workforce by 23% since July 2008.

During 2009 the company reduced its head office and regional office complement by 724 people, bringing the total reduction at head office level to 1 150 since July 2008.

Overall the group reduced its labour complement by 15 752 people during the year or by 18 786 people from October 2008.

This is after initial estimates of only 10 000 job losses.

"This reconfiguration of the company structure was a difficult time for all Anglo Platinum employees, but was unfortunately a requisite part of our rationalisation," the company said in the commentary accompanying its full year results.

The company said the staff reductions occurred in a professional, orderly and compassionate manner.

"In spite of the significant reduction in employees and the associated challenges, we are pleased to say we did not experience any industrial action and we did not have a single forced retrenchment," the company said.

Angloplat has used the challenging past year to reposition the company.

Besides the role of its corporate office being redefined and structures being reduced, there was major restructuring at the company's mining operations.

Angloplat's largest operations, Rustenburg and Amandelbult, have been split into more efficient stand-alone units, of five and two mines respectively.

The company also put three high-cost shafts on care and maintenance.

But despite the shaft suspension and the job cuts, Angloplat CEO Neville Nicolau said the company still achieved its target of producing 2.4 million ounces during the year.

The company's refined platinum production was up 3% to 2.45 million ounces in 2009 and refined platinum sales for the year amounted to 2.57 million ounces compared to 2.22 million ounces in 2008, representing an increase of 16%.

Nicolau said the job cuts have resulted in improved productivity with mining productivity averaging 6.33 metre square per employee during the year, which is a 13% improvement year-on-year.

It also allowed Angloplat to keep cash costs within target range of R11 000 per ounce with cash costs only 1% up at R11.23 per ounce in 2009.

"Cost management is being institutionalised in our business and we have plans to keep our unit costs flat for the next two years," the company said.