Anglo American Platinum Faces Pressure from PGM Market and Restructuring Efforts
Anglo American Platinum (Amplats) continues to grapple with weak platinum group metal (PGM) prices and a high-cost structure, leading to production cuts and significant workforce reductions. The South African miner retrenched 3,700 employees in 2024 and is undergoing further restructuring due to its ongoing demerger from Anglo American, expected to conclude by mid-2025.
Despite these challenges, Amplats CEO Craig Miller remains optimistic about the company's future as a stand-alone entity, believing it will better leverage its South African PGM assets. Miller highlighted the diverse applications of PGMs, including industrial uses, medical treatments, jewelry, and their role in the energy transition through hybrid vehicles and hydrogen fuel cells.
While global economic uncertainty continues to weigh on PGM prices, Miller pointed out that prices have stabilized over the past year. He expects future supply deficits to support a price recovery, suggesting current price levels do not reflect market fundamentals.
Addressing concerns about further job cuts, Miller stated that the company had adjusted its operations to cope with current market conditions. However, he acknowledged that additional measures might be necessary if prices fall significantly. The current restructuring related to the demerger is expected to conclude by the end of February 2025.
As an independent company, Amplats plans to focus on maximizing value from its key assets at Mogalakwena, Mototolo, and Amandelbult. The company aims to adopt a more agile and responsive approach to investment and growth opportunities within its portfolio.
Miller also expressed confidence in South Africa’s political and regulatory environment. He praised the government of national unity (GNU) for fostering inclusive economic development and job creation. From a mining perspective, Miller emphasized South Africa’s stable fiscal environment and regulatory framework, which provide the certainty needed for long-term investments.
Regarding infrastructure, Miller noted that Amplats experienced over 300 days without load curtailment in 2024, attributing this to cooperation between Eskom, the government, and business stakeholders. The company has also entered a 20-year agreement with Envusa Energy to supply 30% of its energy needs from renewable sources. Water supply remains a concern, but Miller expressed confidence in collaborative efforts with the government and regulators to address these challenges.
