Ivanhoe’s Kipushi zinc mine in DRC officially reopens
The restart marked exactly a century since the mine first went into production.
We are going to sell one, two … most of our under-performing assets.
Anglo American’s (LON:AAL) platinum unit, Amplats, is going ahead with its announced plans of selling off its strike-hurt mines in South Africa, as part of plans to divest under-performing assets valued at as much as $4 billion.
The company, Britain’s The Sunday Times reports, has appointed FirstRand Ltd. (FSR)’s Rand Merchant Bank to auction some of its Rustenburg-based mines, which have been in operation since the 1950s.
In an April interview, chief executive officer Mark Cutifani said he didn’t think those mines were key for the company. His statement took on a whole new meaning after Amplats reported it had lost output worth about $1.1bn during the five-month strike over pay at its mines, the same ones that last year accounted for over 40% of the company’s total platinum production.
Other assets up for sale, the Sunday Times says, include copper mines in Chile and nickel holdings in Brazil.
Sibanye Gold (NYSE:SBGL) —South Africa’s top bullion producer— has been repeatedly hinted as the most likely buyer for Anglo’s mines in the platinum belt.
Cutifani, who became CEO in April 2013, said last year he considered performance at the mining group to have been “unacceptably poor” and set a goal of improving Anglo’s return on capital to at least 15% by 2016 from about 8% in June.
South Africa, Africa’s largest economy, holds about 80% of the world’s known platinum reserves, accounting for about 70% of global output, used for jewellery, catalytic converters in vehicles, and as a key source of hard currency for the country, among other applications.
Mark Cutifani delivering a speech at Mining Indaba 2013, via YouTube.
10 Comments
Gary
Looks like Anglo won’t be paying the ex strikers their increase from next year on. Best of British luck to the new owners!
Etco
So an actual buyer might manage to get better results than Anglo from their under performing assets? What’s that say about Anglo management?
miket
Anyone who even thinks of buying these dead dogs needs psychiatric treatment…..and FAST !!!
Kwagga
Sibanye Gold most likely will buy these business units and with the 3 year contract the workers signed and agreed to the increases, production most likely will increase as there possibly won’t be any labour unrests. My prediction is that Mr. Froneman that will be the new owner of these business units, won’t take any crap from the unions. Lets wait and see. One of these days the mining industry in SA will be owned by Sibanye Gold alone. All the best for their new ventures, and may the Boss come and bring a stand still to the Unions.
Pierre
Sela
dawn
Buying mines in South Africa is a risky gamble.With the unions holding companies to ransom and our restrictive labour laws I would advise potential buyers to run like the wind.
Marius Welthagen
Marius
Please note Nigeria is now Africa’s largest economy
MKULU MKULU
Here we are JUJU and Matungwa your big chance to buy a mine or maybe the Zoom Zoom clan will buy in and strip them and not pay the staff.
MKULU MKULU
The Anglo plan is to leave SA and invest elsewhere. Good thinking.
Pierre
So the Australian, broke Anglo Gold Ashanti, took his big severance pay, took a huge sign on package, had much to say about Labour and mines in SA, took his Aussie cronies with him from Anglo Gold Ashanti. If anyone has savvy with Anglo Shares, they should RUN