Amplats puts 60-day hold on job cuts

[miningmx.com] – THE platinum market received another jolt today after Anglo American Platinum (Amplats) said it would suspend the proposed restructuring of its Rustenburg mines for 60 days in order to consult with government and unions.

The mineral resources department (DMR), Amplats, and organised labour comprising the Num, Amcu, Numsa and UASA said that on Thursday (January 24) they had met to “… explore mechanisms of engagement on Amplats’ restructuring proposals”.

This, in turn, followed the meeting held between mines minister, Susan Shabangu, and Amplats on January 17, in which “… constructive discussions were held and a commitment made to engage positively on Amplats’ restructuring proposals,” the parties said in a statement.

The outcome was an agreement to postpone the Section 189 process which had begun on January 15 “… in order to allow for a detailed consultation process to take place between the DMR, Amplats and organised labour,” it said.

The consultations would last for 60 days, starting from January 30, and now raised the possibility that Amplats may not cut 400,000 ounces of platinum producing capacity from the market.

Mpumi Sithole, an Amplats spokesperson, said the agreement to postpone the possible retrenchments, which could affect 14,000 jobs, was not paying lip-service to government’s outrage on hearing of the restructuring.

“We can change [the restructuring]. What we’ve said is that we will listen and accommodate the views of government and unions,” Sithole said.

The postponement of the restructuring represents a victory for government, perhaps only temporarily, after it accused Amplats and parent company, Anglo American, of flouting the terms of its mining permit.

Shabangu threatened a review of mining permit compliance across all of Anglo’ mines in South Africa, a step that was interpreted as intensely anti-investment.

Chris Griffith, CEO of Amplats, was described as “arrogant” by Shabangu for not having properly consulted government ahead of its restructuring announcement. Griffith said he had no wish to fight with the regulator, and promised to engage with the minister and her department.