By Sherilee Lakmidas and David Dolan
JOHANNESBURG Oct 26 (Reuters) – Cynthia Carroll’s
resignation as chief executive of Anglo American has
highlighted the miner’s exposure to South African platinum, an
industry crippled by violent strikes in recent months.
Carroll, who stepped down on Friday under pressure from
investors over the miner’s lagging share price and continued
dependence on strike-hit South Africa, spearheaded investments
in iron ore and other resources to diversify beyond platinum.
Anglo’s platinum business ties it to South Africa’s restive
“platinum belt”, which accounts for 80 percent of global output
of the precious metal and has been paralysed by strikes since
August.
Anglo owns 77 percent of Anglo American Platinum (Amplats)
. Although responsible for 24 percent of its parent’s
2011 revenue, Amplats brought in just 8 percent of total
operating profit because of soaring costs.
Anglo put the business under review months ago, the result
of which, Carroll said on Friday, will be delivered by year-end.
“Anglo has been far too exposed to Amplats for two decades
now,” said Peter Major, mining analyst at Cadiz Corporate
Solutions, a Cape Town-based consultancy.
“The new CEO has got find a way to maximise the value of
what they have got and then reduce exposure.”
While Carroll had opposed hiving off Amplats or paring back
Anglo’s stake, the review was expected to propose closing
high-cost shafts and even selling assets. Closing shafts would
likely mean more friction between Anglo and unions in the
platinum belt, 120 kilometres northwest of Johannesburg.
Continued…
