Unki Mine toes in­di­geni­sa­tion line

Chronicle (Zimbabwe) - - Business - Bianca Mlilo Busi­ness Re­porter

AN­GLO-Amer­i­can Plat­inum Lim­ited says 75 per­cent of pro­ceeds from its Unki Mine near Shu­rugwi would be re-in­vested in the coun­try in line with the in­di­geni­sa­tion reg­u­la­tions.

An­glo-Amer­i­can Ltd is the par­ent com­pany of Unki, Rusten­burg, Union and Marikana mines.

In a state­ment ac­com­pa­ny­ing the in­terim fi­nan­cial re­sults for the six months ended June 30, 2016, the con­glom­er­ate lauded Pres­i­dent Mu­gabe’s clar­i­fi­ca­tion in April of the in­di­geni­sa­tion reg­u­la­tions in the coun­try.

“In terms of the state­ment, ex­ist­ing min­ing com­pa­nies such as Unki would achieve com­pli­ance with the in­di­geni­sa­tion re­quire­ments through en­sur­ing that at least 75 per­cent of gross sales pro­ceeds are spent and re­tained in Zim­babwe,” said An­glo-Amer­i­can.

The Gov­ern­ment crafted the in­di­geni­sa­tion reg­u­la­tions as part of its em­pow­er­ment drive meant to en­sure that lo­cals own the means of pro­duc­tion and are in charge of the coun­try’s econ­omy.

The in­di­geni­sa­tion and em­pow­er­ment laws em­power lo­cals to have 51 per­cent stake in nat­u­ral re­source based busi­nesses such as min­ing with for­eign­ers re­tain­ing 49 per­cent. Non-re­source sec­tors are open to joint ven­tures and part­ner­ships un­der dif­fer­ent min­istries while the re­tail sec­tor is re­served for lo­cals.

Mean­while, An­glo-Amer­i­can Plat­inum Lim­ited says it has iden­ti­fied R1 bil­lion to save through re­duc­ing its work­force, with 40 per­cent of that fig­ure hav­ing been saved in the first half of this year.

It in­di­cated that it had con­sol­i­dated some of its mines to be­come smaller en­ti­ties, an ex­am­ple be­ing that of the five Rusten­burg mines be­ing com­bined to two.

“The com­pany has iden­ti­fied R1 bil­lion of over­head cost sav­ings through the re­duc­tion of 400 man­age­rial po­si­tions, re­sult­ing in R200 mil­lion per an­num of over­head labour cost sav­ings,” reads part of the state­ment.

“R800 mil­lion can also be saved through non-labour over­head sav­ings. In first half (H1) 2016, R400 mil­lion of th­ese over­head sav­ings had been achieved with the full R1 bil­lion run rate to be achieved by Q4 2016.”

The com­pany said since 2013 it had re­duced un­prof­itable plat­inum pro­duc­tion by plac­ing Marikana on care and main­te­nance, con­sol­i­dat­ing the Rusten­burg mines from five to two mines and Union from two to one mine and the clo­sure of the Union de­clines.

The com­pany said it en­vis­aged that the global plat­inum mar­ket would re­main tight in 2016 driven by con­strained pri­mary sup­ply in South Africa and de­mand growth was ex­pected to re­main muted.

“Au­to­cat­a­lyst de­mand is sup­ported by pos­i­tive mo­men­tum in light ve­hi­cle sales in Western Europe, up nine per­cent, with plat­inum light duty diesel load­ings set to rise again in 2016 as a re­sult of Euro 6b im­ple­men­ta­tion,” the state­ment fur­ther reads.

“Po­ten­tial for South African pri­mary sup­ply growth is lim­ited as the low price en­vi­ron­ment weighs on devel­op­ment cap­i­tal and op­er­at­ing costs.

“Sec­ondary sup­ply from au­to­cat­a­lyst re­cy­cling is fore­cast to strengthen mod­estly fol­low­ing a fall in 2015, ow­ing to weaker scrap­page eco­nom­ics dur­ing last year.”

The com­pany said de­spite the in­crease in plat­inum price over the first six months of 2016, the av­er­age price re­mained be­low 2015 lev­els, which was a cause for con­cern.

“The plat­inum price ral­lied from a mul­ti­year low in US dol­lar terms in Jan­uary 2016 as con­cerns over the US and the global econ­omy de­pressed the US dol­lar, al­though it re­mains be­low pre­vi­ous year lev­els.”

Vice Pres­i­dent Em­mer­son Mnan­gagwa

Newspapers in English

Newspapers from Zimbabwe

© PressReader. All rights reserved.