South African Mining Company Anglo Platinum to Cut 10,000 Jobs

by Tina Kells | February 9, 2009 at 01:24 pm

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South African platinum mining company Anglo Platinum announced that it will cut 10,000 jobs in 2009 as part of economy driven downsizing. Citing stagnant demand and dropping platinum prices Anglo Platinum, the world's largest platinum producer, reported a 5% drop in profits.

The jobs will be eliminated by firing contractors and not replacing departing permanent staff.
Platinum prices have fallen more than 50% from a record high last year...

"The costs have risen much and this is a concern. You have a company staffed to produce even up to 3m ounces and they are doing below 2.4m ounces. Their fixed costs are high," said Barend Ritter, a platinum analyst at Sanlam Investment Management.