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South African miner Amplats closes shafts and cuts jobs | South African miner Amplats closes shafts and cuts jobs |
(about 4 hours later) | |
Anglo American Platinum has said it will cease production at four mine shafts in the Rustenburg region of South Africa, which could lead to the loss of almost 14,000 jobs. | |
The world's biggest platinum producer said lower demand for the precious metal and higher costs meant the shafts were unprofitable. | The world's biggest platinum producer said lower demand for the precious metal and higher costs meant the shafts were unprofitable. |
Amplats said it proposed to create 14,000 jobs to balance the cuts. | Amplats said it proposed to create 14,000 jobs to balance the cuts. |
Last October, the company fired 12,000 workers after a strike over wages. | Last October, the company fired 12,000 workers after a strike over wages. |
It said at the time that weeks of illegal strikes had cost it 700m rand ($80m; £50m) in revenue. The workers were reinstated three weeks later following negotiations with unions. | It said at the time that weeks of illegal strikes had cost it 700m rand ($80m; £50m) in revenue. The workers were reinstated three weeks later following negotiations with unions. |
A number of South Africa's miners were hit by a wave of wildcat strikes in which miners and officials were killed. | A number of South Africa's miners were hit by a wave of wildcat strikes in which miners and officials were killed. |
Lower profits | Lower profits |
On Tuesday, Amplats said it had reviewed its entire business in response to a "number of structural changes" in the industry. | On Tuesday, Amplats said it had reviewed its entire business in response to a "number of structural changes" in the industry. |
"The platinum business has attractive underlying fundamentals, but we are facing tough decisions to restore profitability to our operations," said chief executive Chris Griffith. | "The platinum business has attractive underlying fundamentals, but we are facing tough decisions to restore profitability to our operations," said chief executive Chris Griffith. |
"We must evolve to align the business with our expectations of the platinum market's long-term dynamics and address the structural changes that have eroded profitability over time." | "We must evolve to align the business with our expectations of the platinum market's long-term dynamics and address the structural changes that have eroded profitability over time." |
The company said the restructuring would save 3.8bn rand by 2015. This could affect 14,000 jobs, it said, 13,000 of which would be in the Rustenburg area. | |
Any employees or communities affected by the changes would be provided with "a comprehensive package of support". | Any employees or communities affected by the changes would be provided with "a comprehensive package of support". |
Mr Griffith said the restructuring would help create a "sustainable, competitive and profitable business" that would be in a better position to "continue substantial investment [and] provide more secure and stable employment". | Mr Griffith said the restructuring would help create a "sustainable, competitive and profitable business" that would be in a better position to "continue substantial investment [and] provide more secure and stable employment". |
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