Anglo American expects to lose 4,000oz of platinum production a day during strikes

26 January 2014 (Last Updated January 26th, 2014 18:30)

Anglo American Platinum said it will lose 4,000oz of platinum production per day as a result of industrial action at its Rustenburg, Union and Amandelbult operations in South Africa.

Anglo American Platinum said it will lose 4,000oz of platinum production per day as a result of industrial action at its Rustenburg, Union and Amandelbult operations in South Africa.

The company also estimates that it will incur a daily revenue loss of R100m ($9.14m) at current market prices because of the industrial action.

The Association of Mineworkers and Construction Union (AMCU) started its strike for an entry level salary of R12,500 at Amplats, Lonmin and Impala Platinum (Implats).

It is expected that 70% of global platinum output will be disrupted by the strike.

Lonmin and Implats anticipate to lose about 3,100oz per day and 2,800oz per day in platinum production, respectively.

Anglo American said the situation remains calm although there is a general disregard for the picketing rules by striking employees.

Lonmin said it is committed to finding a positive and sustainable resolution to the dispute in the interests of all its stakeholders and management continues to engage at all levels to seek agreement.

Implats said operations at the affected shafts will focus on cleaning, maintenance, development and essential support services.

The company will be stockpiling flotation concentrate from other mining operations and the processing plant should have sufficient capacity to make up the back log once operations resume.

Zimplats Holdings will continue to process matter through the refinery and Implats said it is supporting the proposed government-facilitated mediation process in an attempt to find a resolution to the current impasse.

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