By Alex MacDonald
LONDON--Anglo American Platinum Ltd. (AMS.JO) said Friday that
it has declared force majeure on its chrome ore deliveries due to
illegal strikes that have affected its South African operations and
resulted in approximately 1.1 billion rand ($126 million) in lost
platinum revenue.
The world's largest platinum producer, accounting for some 40%
of the world's output, has six mines out of operation and a smelter
offline after an insufficient number of workers failed to show up
to work due to the illegal strikes.
The strikes, which began four weeks ago, led the company to
dismiss about 12,000 workers and has now cost it about 67,000 troy
ounces in lost platinum, or 3,800 ounce of platinum per day.
The company, which is majority owned by Anglo American PLC
(AAL.LN), said that while it has declared force majeure--meaning
events beyond its control are preventing it from fulfilling its
obligations--on chrome ore deliveries to customers, the company's
delivery of the platinum group of metals, which includes platinum,
remains unaffected by the strikes. Chrome ore is used in steel to
make it rust resistant.
A company spokeswoman wasn't able to confirm how much production
was affected by the force majeure.
Several other companies have also declared force majeure
recently as a result of illegal strikes that began in the platinum
sector and spread to the gold, coal, and transportation
sectors.
Kumba Iron Ore Ltd. (KIO.JO), South Africa's largest iron-ore
producer, declared force majeure on the delivery of the steelmaking
ingredient to South Africa's largest steelmaker, ArcelorMittal
(MT), earlier this week, while oil major Royal Dutch Shell PLC
(RDSB.LN) declared force majeure last week on some fuel deliveries
due to striking truck drivers.
An Anglo Platinum spokeswoman said that the company has
concluded disciplinary hearings over illegal strikes at the Union
mine and is still conducting disciplinary hearings at the
Amandelbult Mine, which has suffered an illegal strike since Oct.
3. She said there was no update on what the disciplinary action
would be.
Chris Griffith, Anglo American Platinum's chief executive, said:
"We are calling for calm in those affected areas and continue to
work closely with our tripartite partners--government and the
recognised labour unions--to help restore law and order to the
affected areas."
He added, "Our commitment to the Platinum centralized engagement
structures, driven by the Chamber of Mines, has not changed and, as
we have mentioned, we are considering the possibility of bringing
forward wage negotiations that are within our current
arrangements."
Write to Alex MacDonald at alex.macdonald@dowjones.com
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