South Africa-Based Platinum Miner Amplats Books Profit Despite Strikes

South Africa-Based Platinum Miner Amplats Books Profit Despite Strikes

"Although we believe that the longer-term supply and demand outlook for the platinum business remains attractive, the operating environment remains difficult," Amplats CEO Chris Griffith said.

JOHANNESBURG—The world's top platinum producer, Anglo American Platinum (IW 1000/635), today reported a swing back to profit in the first half of 2013, boosted by the weaker rand and increased sales.

The South Africa-based miner reported profits of 1.2 billion rand (U.S. $125 million) for the first six months of the year.

The profits mark a strong recovery from a loss of 450 million rand in the same period a year ago, when earnings were hit by strikes over pay and working conditions.

The company said it was pleased to report "significant improvement in production performance" despite the intermittent illegal strikes that were still continuing to affect output.

"Although we believe that the longer-term supply and demand outlook for the platinum business remains attractive, the operating environment remains difficult," CEO Chris Griffith said.

Amplats accounts for almost 40% of global platinum production.

Griffith added that while the company delivered strong growth in earnings, there was a need to restructure operations to restore profitability and align production with market demand.

Job Cuts, Revised Target

In May, Amplats announced plans to cut 6,000 jobs to minimize the impact of losses suffered during work stoppages. The company said most of the cuts would come in the northern city of Rustenburg, the center of deadly labor violence last year.

Amplats is revising its refined platinum production target for 2013 to 2.3 million ounces, as a result of a delay in the implementation of the restructuring proposals.

Meanwhile, a union said production was reportedly halted at one of Amplat's facilities today after a rockfall trapped two mineworkers underground.

The two workers were drilling in the mine's Batho Pele East shaft in Rustenburg on Saturday when the accident happened, according to Association of Mineworkers and Construction Union shaft leader George Tyobeka.

"Ground became loose and fell on top of them," Tyobeka said.

Rescue teams have been searching for the workers since Saturday, and surrounding mines Lonmin and Impala Platinum also sent in reinforcements, he said.

Copyright Agence France-Presse, 2013

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