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Anglo sees ‘tough call’ on platinum

August 30 2013 at 12:25pm
By Andre Janse van Vuuren

one part states...

"Platinum producers in South Africa, which has the largest known reserves, are seeking to curb costs after strikes last year led to above-inflation wage increases while prices dropped. Amplats, as Anglo American’s Johannesburg-based platinum unit is known, needs to deliver a 15 percent return on capital, in line with the rest of the group’s businesses, Cutifani said.

“If operations bleed cash, then they will be closed or sold,” said Cutifani, who took over as CEO of Anglo American in April. “If they are not delivering the returns but they are creating cash, they certainly wouldn’t be closed, but they would be considered for sale.”

South Africa, which makes up 45 percent of Anglo American’s sales, should complete a review of its mining taxes as quickly as possible, Cutifani told a Johannesburg conference on Thursday. The ruling African National Congress in December rejected calls in the country to nationalise mines in favour of higher taxes. " continues