Amplats raises doubts over Rustenburg unit

Amplats raises doubts over Rustenburg unitAnglo American Platinum (Amplats) has raised doubt over the financial position of its Rustenburg operations.

The company said on Monday that the unit is not in a good financial position and the management might have to restructure its operations. The company indicaed that it will have to make changes in order to achieve long tern sustainability.

"The Rustenburg operations are those that are in the most marginal financial position in the platinum group, we cannot rule out the need for further restructuring to ensure the longer-term sustainability of those operations," said Sithole Mpumi, an Anglo American spokesperson.

The company might be looking for a buyer for its Amplats mine in the North West of the country. The company's Chief executive officer Mike Cutifani has hinted that the operations in Rustenburg were no longer its core asset. Many believe that the company might look to sell its non core assets in order to save costs.

The Association of Mineworkers and Construction Union (Amcu) has on a strike for three monthd affecting operations of units in the region. The workers are demaning a rise in salaries.



Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate