[miningmx.com] – ANGLO American is not intending to sell off its 80%
stake in listed subsidiary, Anglo American Platinum (Amplats) or demerge its shares,
Anglo American CEO, Cynthia Carroll, told Dow Jones Newswires.
“One thing that isn’t on the table is selling it [Amplats] off or demurring. I have been
asked that quite a number of times. That isn’t what we are doing here,” Carroll told
Dow Jones.
“Our returns in platinum were in line with the industry but not acceptable to us. We’ve
got the potential to do something that really is superior to the industry in a big way,”
Carroll told the newswire.
“We are … of the strong belief that the fundamentals of the platinum industry and the
business are very attractive,” said Carroll who added, however, that selling assets in
Amplats was a possibility.
“There is nothing off the table,” she told Dow Jones.
Two South African platinum producers told Miningmx this week that they were
positioning themselves to take advantage of potential business opportunities that
might flow from a restructuring of Amplats.
Martin Prinsloo, CFO of Royal Bafokeng Platinum (RB Plats) said his company was one
of several close to Anglo Platinum that would view business with a black economically
empowered company as a positive development.
“If they would like us to contribute to a project, dilute their shareholding, or perhaps
do business with a BEE company, then I think we’re well positioned,” he said.
Andre Wilkens, the outgoing CEO of African Rainbow Minerals (ARM) believed that a
first option for his company was to contribute to a more than 50% expansion in the
productive ability of the 300,000 oz/year Modikwa mine, effecting diluting Anglo
American which has indicated that low cost open cast platinum mining might be its
future preference in terms of expansion.
The review would look at how the company approaches investment in open pit versus
underground mining and its processing facilities, Dow Jones said citing Carroll.
In fact, Anglo American’s review will examine the entire platinum production chain
including downstream and upstream facilities, recycling, product mix and marketing.
