Image: Gallo

Anglo American CEO Cynthia Carroll

Speaking during a conference call, Carroll said the platinum industry faced challenges in SA, including rising inflation, labour and energy costs and safety stoppages.

She noted that the platinum industry faced serious stoppages last year and inspectors were shutting down whole mines as opposed to sections of mines where safety discrepancies were identified.

She said Anglo was working with the Department of Mineral Resources (DMR) and the department was now taking a different approach.

Anglo is looking at various initiatives and has some near term quick fixes. She said the group was spending time with the DMR to get them to take the right approach and the DMR is showing signs of doing that.

Anglo's platinum mines had 81 Section 54 DMR safety stoppages in 2011 compared to 36 in 2010.

"Platinum is continuing to work with government and labour departments towards zero harm," the group said.

Despite a downward trend since 2007, Anglo's platinum mines had a disappointing safety performance in 2011, with 12 fatal accidents.

She said the group was focusing on the need to get the industry back to the returns it saw in 2008.

Carroll noted that returns in the platinum industry in general have declined in recent years, and this was not acceptable. She said the group would be embarking on a review to assess the optimal configuration of the platinum portfolio to maximise shareholder returns through the cycle.

Anglo's platinum division generated an operating profit of US$890 million in the year ended December 2011, a $53 million increase on a year ago, thanks to higher metal prices, which were offset by higher costs driven by labour and electricity rate increases.