Amplats expected to scale back cuts

May 09, 2013, 1:26 PM EDT
Trucks leave an Anglo American Platinum (AMPLATS) processing plant near Rustenburg in this October 12, 2012 file photo.
REUTERS/Mike Hutchings/Files

Amplats, the South African platinum arm of mining group Anglo American, is expected to announce that it will scale back plans to mothball two mines and lay off 14,000 workers. The company has been under pressure from the South African government and militant mine workers labor unions not to press ahead with a restructuring intended to reverse last year's losses by cutting costs and production. Amplats is now expected to announce in the order of 6,000 job cuts, though labor unions have said they will continue to oppose any job losses. The outcome is being closely watched in the industry to see how deeply Amplats, the world'd biggest producer, will cut its output of the metal to drive up prices by bringing supply and demand more closely in line.

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