Anglo American Platinum to cut 6,000 jobs

Anglo American Platinum is set to axe 6,000 jobs in an effort to reduce costs and improve efficiencies.

The move comes as part of a number of proposals aimed at restoring profitability to the mining company.

Proposals include revising its baseline production to 2.2m from 2.4m ounces per annum in the short to medium term and consolidating its Rustenburg project into three operating mines.

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The consolidation of Rustenburg would involve the integration and optimisation of the Khuseleka 2 and Khomanani 1 mines along with two mines in the surrounding area.

It would result in a drop in production capacity of about 250,000 ounces per annum (oz/pa) in 2013 and by an additional about 100,000oz/pa in the medium term.

The company is also looking to explore opportunities for further joint ventures and acquisitions.

"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," the group said in a statement.

Anglo expects the proposed changes to result in a sustainable production of 320,000 to 350,000 ounces per annum in the medium term.

Shares fell 2.10 to 1,632p at 12:06 Friday.

RD