16 Jan 2013

Miner to cut jobs in Sth Africa

6:04 am on 16 January 2013

Anglo American Platinum could cut up to 14,000 mining jobs in a major restructuring in South Africa. In a statement, the group said it plans to close four shafts and sell a mine.

"As a result of the proposed changes to the business, a total of up to 14,000 jobs may be affected, 13,000 of which will be in the Rustenburg area," 110km northwest of Johannesburg, the company said.

Amplats said operations in South Africa have been unsustainable "for some time" because of capital intensity, low-quality ore and rising costs.

Demands for higher wages crippled production across the mining sector in South Africa last year. At least 50 people were killed.

AAP reports chief executive Chris Griffith said on Tuesday that the strikes reduced Amplats' production by around 306,000 ounces, but did not prompt the changes.

"The strikes were not the reason for us having to restructure the company," he said.