Sunshine Seeds/iStock via Getty Images
Anglo American (OTCQX:AAUKF) (OTCQX:NGLOY) will freeze spending on growth and add to job cuts in South Africa, paving the way to mothballing some higher-cost platinum mines, Reuters reported Thursday.
Measures reportedly include ending a plan to increase production at Anglo American Platinum’s (OTCPK:ANGPY) (OTCPK:AGPPF) key Mogalakwena mine, and potentially place on care and maintenance some shafts at the Amandelbult complex in the longer term, which had been initially targeted for mechanization and output expansion.
Such moves likely would result in further job cuts at the operations and reduce production guidance, according to the report.
Anglo (OTCQX:AAUKF) (OTCQX:NGLOY) initially targeted saving $500M by cutting corporate jobs and some costs at head offices in Johannesburg, London and elsewhere, and further spending cuts reportedly could save an additional $1B by year-end 2024, mostly from its platinum operations.
Plunging prices of platinum group metals have forced other South African producers including Sibanye Stillwater and Impala Platinum to slash jobs to try to preserve margins.