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Anglo May Sell Platinum Mines


News » Sports
Nigeria

June.19.2014

World’s largest platinum producer, Anglo American may sell its mines in South Africa following incessant mining strikes that has lead to continually derailed revenue inflow.

“The industry is facing significant headwinds to realise the levels of returns that we would view as acceptable, so we are examining how we could reconfigure the portfolio to drive returns, particularly taking into account the opportunity presented by our unique and world-class open pit, Mogalakwena,” the head of corporate communications at Anglo American SA, Pranill Ramchander said this week.

Rob Clifford, Deutsche Bank AG mining analyst says if the sale goes through, the miner’s stock will swell by 13 percent.

According to the analyst, Anglo may be able to shed its loss-making mine as investors and other mining companies are seeking partnership deals in the platinum business.

Clifford said Sibanye Gold, South Africa’s top gold producing company might be interested in Anglo’s three mines in Rustenburg, South Africa. Platinum peers are however unlikely to make an offer.

Two months ago, Anglo’s CEO, Mark Cutifani said his company was considering plans to switch its operations to mechanized open-pit mining from labour-intensive underground excavation and will no longer consider it as one of its core assets.

“I don’t think our operations in South Africa’s platinum belt is where our best skills set sits. That’s why I’ve been quite vocal saying we should consider taking a back step from Rustenburg,” he told Business Day in an interview in April.

Selling off its platinum mine will offer Anglo “the cleanest exit, minimizing legacy closure and employment obligations,” Clifford maintained.

 

Article Credit: Ventures-africa

Updated 5 Years ago
 

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Tags:     Anglo May Polish     Sell Its Platinum Assets

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