The Conversation (0)
Miningmx reported that Chris Griffith, CEO of Anglo American Platinum (JSE:AMS) has said that major platinum supply cuts are unlikely. As quoted in the publication: A VIEW doing the rounds is that South Africa’s platinum producers are the architects of their own troubles owing to a reticence to lower production; in fact, production is increasing. …
Miningmx reported that Chris Griffith, CEO of Anglo American Platinum (JSE:AMS) has said that major platinum supply cuts are unlikely.
As quoted in the publication:
A VIEW doing the rounds is that South Africa’s platinum producers are the architects of their own troubles owing to a reticence to lower production; in fact, production is increasing.
“The majors have all concentrated on ramping-up capacity instead of restructuring as a way of reducing unit costs,” said Goldman Sachs in a recent report.
Allan Cooke, an analyst at JPMorgan, raised a similar objection at the interim results of Anglo American Platinum (Amplats) earlier this week asking if the Anglo American firm was actually “managing for the current environment” as it contended.
Said Chris Griffith, CEO of Amplats: “We have now got more headwinds and we need to keep looking at where we’re profitable and where our mining needs to be as efficient as possible”.
The point he was making is that, yes, the company was looking to its own interests, and not industry-wide issues, by focusing on increasing volume in order to lower unit costs.
In a conference call with media earlier that day, Griffiths said Amplats had already taken pain by restructuring in 2013 in which labour numbers were reduced to 8,700 from 32,000 at the Rustenburg and Union section mines.