Amplats contributes $1m loss to Anglo American's H1 after platinum strike

21st Jul 2014 08:06

Anglo American Platinum (Amplats) contributed a $1m loss to the underlying earnings of its parent company in the first half, reflecting the five-month miners strike that crippled the industry in South Africa.UK-listed Anglo American said that Amplats would report a small underlying loss for the six months to June 30th, compared with a $92m underlying profit the year before.The stoppage of work - a result of prolonged negotiations over wages between producers and the Association of Mineworkers and Construction Union (AMCU) - affected some 45% of global platinum supply and was partly to blame with a contraction of South Africa's economy in the first quarter.Amplat produced just 715,000 tonnes of platinum in the first half of 2014, down 39% on the 1.28m produced the year before.The industrial action ended last month after AMCU agreed to a three-year wage deal, which included increases to basic salary, living-out allowances and housing rent subsidies for all workers.In a statement in June, Amplats Chief Executive Chris Griffith said: "It has been a long and difficult journey, but we have reached a reasonable outcome for all parties. "However, the protracted strike has underlined broader issues facing the industry, its workforce and mining communities. We are committed to working with stakeholders to find solutions to address these issues and to deliver sustainable benefit for all involved."BC