Anglo American Platinum had a difficult year, affected by 81 safety stoppages, it said on Monday on the release of its annual results for the year ended December 2011.
“Although 2011 was a particularly challenging year, the restructuring programme implemented in 2008 delivered the intended step change in our operational performance,” said CEO Neville Nicolau in a statement.
Anglo American Platinum, the world's largest platinum producer, had reduced fatalities by 52 percent and lost-time injury frequency rates by 37 percent since 2007, he said.
“I am, however, deeply saddened that 12 of our employees lost their lives during 2011.”
Nicolau said there had been a marked increase in the number of safety stoppages in the South African mining industry.
“We were impacted by 81 safety stoppages at our own operations in 2011, compared to 36 in 2010.
“We are continuing to work with government and our workforce to implement more effective means of addressing major risks and non-compliance to standards. The journey to zero harm remains our key strategic objective.”
Production of refined platinum for the year was two percent lower than the previous year, despite the safety stoppages.
This was “in part due to the increased reliability and efficiency of the smelters which have operated for three years without a major incident,” Nicolau said.
Anglo American Platinum had reduced its labour force from over 85,000 in 2008, to 58,000 by the end of 2011.
Nicolau said this was “an appropriate level for our production base”.
“We will continue with our reduction of redundant labour, preferably through mechanisms that avoid retrenchment,” he said.
This formed part of the strategy to contain unit costs.
Anglo American Platinum reported an operating profit of R7.97 billion for the year under review.
However, headline earnings per ordinary share decreased by 29 percent to R13.65.
The platinum market was expected to be stable in 2012.
“Anglo American Platinum expects the platinum market to remain in balance in 2012 due to continued strengthening of autocatalyst demand, resilient jewellery markets and continued investor interest.”
However, it warned that supply problems could escalate due to an increased risk of supply disruptions from power shortages, industrial action and safety stoppages in South Africa.
Anglo American Platinum is a member of the Anglo American Group and is listed on the Johannesburg Securities Exchange. - Sapa