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Anglo American shuts South African platinum mine

12 Sep 2012

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Police keep watch during the arrival of some of the mine workers, at a Garankuwa court outside Pretoria

BBC

UK-listed miner Anglo American has suspended operations at a platinum mine in South Africa to "protect the safety of its employees".

The miner blamed the "current volatile situation in the Rustenburg area, where our employees, who want to go to work... are being intimidated by the threat of violence".

According to the BBC, stick-waving miners have blockaded roads around the mine.

Anglo American shares fell 2% in London.

Cynthia Carroll, chairman of Johannesburg-based Anglo American Platinum, said: "We have taken this decision to suspend our operations in order to help ensure the safety of our employees - our absolute priority.

"We are in touch with the authorities at the highest level to identify how we can work together with our tripartite partners - government and the recognised labour unions - to achieve a swift and peaceful resolution to these illegal actions."

On Tuesday, the South African politician, Julius Malema called for national strikes across all South African mines for five days each month, to fight for an increase of three times the current national average.

Meanwhile, Lonmin shares fell another 4% on Wednesday as a wildcat strike at its Marikana mine continued.

Lonmin is the owner of the site where a clash between striking miners and police resulted in the murder of 34 others shot dead by police last month.

South Africa is home to 80% of known reserves of platinum. The price has gained nearly 20% since the police shootings at Marikana.

Tags: Business, World, Featured, ANGLO-AMERICAN, South Africa, PLATINUM MINE

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