DEPARTMENT OF MINERAL RESOURCES (DMR) DISAPPOINTED ABOUT THE ANGLO AMERICAN PLATINUM ANNOUNCEMENT
The Department of Mineral Resources expresses grave disappointment about the unilateral decision of Anglo American Platinum to put its Rustenburg operations under care and maintenance for an undefined period and also dispose of its Union mine, which effectively affects 14 thousand direct jobs.
In its announcement the company cites that it has undertaken a year long study which has presented a case to take such a drastic decision. This study cites albeit not limited to, unprofitability and unviability of these assets as the basis of such a review.
It is regrettable that the company consulted with the department less than seven days ago despite the major socio-economic ramifications of its decision. The department regrets the behavior by Anglo American on how the company relates and undermines the regulator on such important business decisions which impact on the country's economy. This behavior has indeed undermined the tripartisan relationship the DMR has sought to build over the years with mining companies through its stakeholder forum MIGDETT.
The DMR is also concerned about the extent of compliance with regulatory requirements on inter alia, establishment of future forums in terms of section 52 (Regulation 46 (d)) of the MPRDA on downscaling and large scale retrenchments. This failure resulted in the inability to achieve the primary objective of the Social Plan to avoid job losses and for the affected to foresee this eventuality.
Furthermore the statement makes no mention of whether the company has taken into consideration issues of Mine Health and Safety, environmental Management Plans that will be implemented during this undefined care and maintenance period of these operations as well as the societal impact of their decision.