Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Platinum producer Atlatsa to shut two shafts in South Africa

Published 2015-09-16, 09:40 a/m
© Reuters. Platinum producer Atlatsa to shut two shafts in South Africa

JOHANNESBURG, Sept 16 (Reuters) - Platinum producer Atlatsa
ATLJ.J said on Wednesday it aimed to close two high-cost
shafts at its Bokoni mine in South Africa and had started talks
with unions about potential lay-offs, the latest such moves in
an industry hit by low prices.
Mining job cuts are politically a sensitive issue in South
Africa ahead of local elections next year. The government and
unions agreed a broad but non-binding 10-point pact in August
aimed at stemming mounting lay-offs in the face of falling
prices and soaring costs.
Bokoni is a joint venture between Atlatsa and Anglo American (LONDON:AAL)
Platinum AMSJ.J , which last week sealed a deal to sell its
costly and labour-intensive Rustenburg operations west of
Johannesburg to Sibanye Gold SGLJ.J .
The company did not say how many jobs could potentially be
at risk. The entire operation has 6,000 employees, with 2,000 at
the shafts slated for closure.
Atlatsa's Johannesburg shares leapt 22 percent to 50 cents
on the announcement.
Atlatsa said the shafts had "remained operational for longer
than originally contemplated, a position which is no longer
sustainable in light of limited available ore reserves ... and
continued depressed platinum group metal prices."
It said the shafts, UM2 and Vertical Merensky, were being
placed on "care and maintenance" - industry speak for
mothballing unprofitable operations.
Platinum's XPT= price is currently fetching around $960 an
ounce, pinned near 6-1/2 years lows.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.