Strike could cost Amplats R11bn in losses

Johannesburg - Anglo Platinum (Amplats) [JSE:AMS] expects it will take about two weeks for the company to resume significant output after a five-month work stoppage at the world's biggest producer of the metal, its CEO said on Wednesday.

"I reckon in about two weeks we'll start seeing meaningful production," Chris Griffith, Amplats chief executive, told Talk Radio 702.

He estimated the world No. 1 platinum producer would end up losing R11bn due to the strike.

Amplats, along with rivals Lonmin [JSE:LON] and Impala Platinum (Implats) [JSE:IMP] signed wage deals with the Association of Mineworkers and Construction Union (Amcu) on Tuesday, bringing an end to the longest and costiliest labour strike in South African history.

The five-month strike hit 40% of global production of the precious metal and has cost the three platinum giants a combined R24bn in lost revenue.

Around 1.2 million ounces of production have been lost to date, according to Reuters calculations based on the companies' estimated loss of 10 000 ounces a day. The industry usually works for 11 days out of 14.

Yet the strike had little impact on the spot price of platinum, underscoring the challenges facing the sector.
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