Anglo American’s platinum arm is expected to cut 14,000 mining jobs as part of the loss-making business.
According to industry sources, the mining company is under pressure from South African government.
Anglo American Platinum, the world’s top platinum producer, is battling to restore profits and is planning to cut back production and mothball two mines near the platinum belt city of Rustenburg.
However, the news that been met with fierce resistance from the ruling African National Congress (ANC) and unions.
The 14,000 jobs initially at stake would equate to 3% of South Africa’s mining labour force, and the planned lay-offs come at a time when social tensions are running high.
Labour unrest and wildcat action last year triggered violence that killed over 50 people and led to a credit downgrade for Africa’s biggest economy.
“The government is being incredibly tough,” said one of the sources, after almost four months of talks.
Chosen excerpts by Job Market Monitor
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