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Anglo American Platinum Announces Revised Proposals To Create a Profitable Platinum Business
ANGLO AMERICAN PLATINUM LIMITED
Incorporated in the Republic of South Africa
Registration number 1946/022452/06
Share code: AMS
ISIN: ZAE000013181
ANGLO AMERICAN PLATINUM ANNOUNCES REVISED PROPOSALS TO CREATE A SUSTAINABLE,
COMPETITIVE AND PROFITABLE PLATINUM BUSINESS
In January 2013, Anglo American Platinum Limited (“Anglo American Platinum” or “the Company”)
announced its proposals to create a sustainable, competitive and profitable platinum business for the long
term benefit of all its stakeholders. Following the announcement of its proposals, Anglo American Platinum
and its recognised unions agreed to suspend the section 189 consultations to allow for engagement to take
place with the Department of Mineral Resources (DMR) and the unions. At the request of the DMR, such
engagement became a bilateral engagement between Anglo American Platinum and the DMR. The bilateral
engagements with the DMR have now been completed. Anglo American Platinum has formulated revised
proposals which remain focused on improving the profitability and sustainability of its business, while taking
cognisance of the local and national socio economic challenges.
The Company’s review of the business was in response to its revised expectations for platinum demand
growth and a number of structural challenges that have eroded profitability in recent years, including capital
intensity, mine depths, lower ore grades, higher than inflation unit cost increases, jewellery demand elasticity
and increasing secondary supply of platinum. Anglo American Platinum’s revised proposals continue to
address the objective of aligning the business with its expectations of long term demand and are an
extension of the steps taken to reposition the business in recent years.
The revised proposals include:
- Revising baseline production to 2.2 - 2.4 million ounces per annum in the short to medium term
- Consolidating Rustenburg into three operating mines through the integration and optimisation of
Khuseleka 2 and Khomanani 1 and 2 mines into the surrounding mines. Khuseleka 1 remains
operational which is the principal revision to the previous proposal. This will result in a reduction of
production capacity of approximately 250,000 ounces per annum in 2013 and by an additional
approximately 100,000 ounces per annum in the medium term
- Reducing overhead costs and improving efficiencies
- Exploring opportunities for further joint venture business improvement and portfolio rationalisation
Should these revised proposals be implemented, Anglo American Platinum’s Rustenburg operations will be
reconfigured as a sustainable 320,000 - 350,000 ounces per annum platinum producer in the medium term.
As originally proposed, Anglo American Platinum’s Union mines will be divested at the right time and will be
reconfigured in the interim to protect near term value. The Company’s review of its overheads, support
structure and costs, as well as the review of its commercial and marketing strategy will also proceed as
planned. Processing operations will be aligned to the revised long term production plans. The Company
remains committed to delivering R3.8 billion of annual savings by 2015 from the indirect and direct cost
savings.
Anglo American Platinum expects that the revised proposals have the potential to reduce the number of
mining and processing jobs affected to approximately 6 000. Anglo American Platinum will comply with the
Labour Relations Act (LRA) and the MPRDA obligations and these will include full consultation with unions
and employee representatives which will commence in due course. As outlined in its announcement of 15
January 2013, Anglo American Platinum continues to take its social responsibilities seriously, particularly to
its employees and surrounding communities, and has proposed a comprehensive social plan which will form
part of the consultation with employees and their representative structures.Chris Griffith, CEO of Anglo
American Platinum commented: “We have been working diligently to reach the shared objective of creating a
competitive platinum business for the benefit of all stakeholders. These revised proposals reflect our
commitment to South Africa and our role in addressing the socio economic challenges facing the country,
while recognising that we need to take actions to return the company to profitability. W e are hopeful that the
revised proposals will serve as a basis for meaningful consultation with our employees and their
representative structures. The revised portfolio is one that retains flexibility, reduces complexity and will
position us to achieve our goal of creating a sustainable and profitable platinum business.”
10 May 2013
Merchant bank and sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Mary Jane Morifi, Executive Head: Corporate Affairs
Tel: +27 (0)11 373 6638
Mpumi Sithole, Media & External Relations Manager
Tel: +27 (0)11 373 6246
Kgapu Mphahlele, Investor Relations
Tel: +27 (0)11 373 6239
Notes to editors:
Anglo American Platinum Limited is a member of the Anglo American plc Group and is the world’s leading
primary producer of platinum group metals. The Company is listed on the Johannesburg Securities
Exchange (JSE). Its mining, smelting and refining operations are based in South Africa. Elsewhere in the
world, the Company owns Unki Platinum Mine in Zimbabwe and is actively exploring in Brazil. Anglo
American Platinum has a number of joint ventures with several historically disadvantaged South African
consortia as part of its commitment to the transformation of the mining industry. Anglo American Platinum is
committed to the highest standards of safety and continues to make a meaningful and sustainable difference
in the development of the communities around its operations.
www.angloamericanplatinum.com
Anglo American plc is one of the world’s largest mining companies, is headquartered in the UK and listed on
the London and Johannesburg stock exchanges. Anglo American’s portfolio of mining businesses spans bulk
commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and
nickel; and precious metals and minerals – in which it is a global leader in both platinum and diamonds.
Anglo American is committed to the highest standards of safety and responsibility across all its businesses
and geographies and to making a sustainable difference in the development of the communities around its
operations. The Company’s mining operations, extensive pipeline of growth projects and exploration
activities span southern Africa, South America, North America, Australia, Asia and Europe.
www.angloamerican.com
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