Amplats loses R1bn in output, cuts 2012 budget by R800m

BDlive Online reports that Anglo American Platinum (Amplats) has lost 138,000oz, worth over R1bn, in production, and has scaled down capital expenditure plans for this year by a further R800m, due to the continuing strike at its mines. On Thursday, the Treasury said that wildcat strikes at platinum and gold mines have cost South Africa R10bn, more than the R8.7bn spent on basic education in the 2010-11 financial year.

Workers are still on strike at Amplats's five Rustenburg mines and its Union and Amandelbult mines in Limpopo. Amplats has fired 12,000 workers and has said it will not rehire them. Amplats, the world's largest platinum producer which is 80% owned by Anglo American, said on Thursday at the release of its September quarter results that it's lost revenue of nearly R1.9bn.

According to BDlive Online, the company cut its R9bn capital expenditure budget for 2012 repeatedly during the year, with the latest cut of R800m being blamed on the strike and weak market conditions.

Read the full article on www.bdlive.co.za.