Implats starts talking about selling or outsourcing one of its big mines
The world’s number two platinum miner has embarked on a process of restructuring its unprofitable Rustenburg mines
Impala Platinum shares shot up more than 10% on Wednesday as the world's second-largest platinum producer's restructuring strategy gained momentum, with improved production at its Rustenburg mines and talks starting on the sale of one big shaft. Implats outlined a R2.7bn restructuring process at its unprofitable Rustenburg operations in August, entailing the removal of up to 13,000 jobs and the closure or sale of five of its 11 mines.
Investors cheered the strongest production performance at the Rustenburg mines in five years, a time before the industry was hit by a five-month strike that stripped one million ounces out of South African platinum output and battered balance sheets. The news of the job cuts and shaft closures provoked the ire of mineral resources minister Gwede Mantashe and the unions, which urged the company to seek alternatives to shutting mines and shedding jobs. Implats said on Wednesday that it had started a process to find interested buyers in its 1 Shaft ...