ANGLO American acknowledged it was under pressure following sustained weakening in platinum group metal prices (PGMs) and a decline in the performance of South Africa’s logistics infrastructure, but it declined to confirm a Bloomberg News article on Friday that job cuts had been discussed with the government.
“It is no secret that the current operating environment is very tough for both macro and South Africa-specific reasons and we are playing a major role in working across business and with government to help resolve some of those South Africa constraints,” Anglo American told the newswire.
“Beyond that, it would be inappropriate for us to comment on the details of our discussions,” it said.
According to Bloomberg News, senior government officials asked Anglo to consider delaying the cuts until after elections, which are expected to take place no later than May next year. Bloomberg cited the Congress of South African Trade Unions as saying that Anglo had spoken to one of its members, the National Union of Mineworkers, about job cuts.
Potential job cuts would be at its 79%-controlled Anglo American Platinum (Amplats) following a hefty decline in the basket price for PGMs, led by palladium – down about 40% this year.
At Kumba Iron Ore, however, the pressure Anglo was feeling was a result of a decline in deliveries of iron ore from its mines in the Northern Cape province to Saldanha port, said Bloomberg News.
While a final decision on whether to fire workers and how many positions may be affected has not been taken, the job cuts may impact Amplats first, said Bloomberg News. Those at Kumba may be deferred until later, they added.
