ANGLO American set out its plans for supporting employees, communities and business during the COVID-19 pandemic which in South Africa was to spend $125m (R2.4bn) per week on the procurement of services and wages.
This was in order to embark on economic recovery once the pandemic was over, said Anglo American CEO, Mark Cutifani, who described the onset of COVID-19 as “… the greatest threat to global health in a century”.
“We are maintaining the security and integrity of our assets and the supply of essential raw materials to customers, preserving our ability to return operations to normal levels as swiftly as possible when appropriate,” he said in a group statement today.
“We want to ensure we are ready to support what will be a crucial economic recovery phase for the countries in which we operate and the global economy.”
Last month, Anglo reduced production guidance on its assets, including those in South Africa which it described today as the heaviest hit by COVID-19 restrictions, including Kumba Iron Ore, which was expected to produce between two to three million tons less iron ore in the 2020 financial year after it reached agreement with the South African government to reduce the workforce by half during the lockdown.
Anglo’s thermal coal production from South Africa would be 1.5 to two million tons less for the year whilst production of refined platinum group metals from Anglo American Platinum was on hold owing to a previously disclosed processing facility shutdown that would see it produce about 900,000 oz less PGMs in 2020.
“While the commercial impacts of this crisis will likely be significant for many businesses, we are doing all that we can to insulate our employees during this period,” said Cutifani.
“For example, in South Africa where the most extensive operational impact is currently felt, we have committed to continue paying the salaries of all of our 47,000 employees during the 21-day lockdown period, ensuring that they are able to focus on the health and safety of their families and their local communities.”
In an announcement that also detailed various extensive social and economic interventions across a number of districts including sub-Saharan Africa, as well as South and North America, Anglo said it had provided a payment holiday until the end of June on any loans to small and medium-sized businesses.
Social interventions in South Africa included making available (and expanding) its medical facilities at its Highveld Hospital, providing water tanks to 69 villages for sanitation, and assisting the South African government with quarantining facilities.
