April 23, 2020 / 7:23 AM / a month ago

South Africa's Amplats aims for $211 million cost cutting and capex savings this year

JOHANNESBURG, April 23 (Reuters) - South Africa’s Anglo American Platinum (Amplats) said on Thursday it aims to save around 4 billion rand ($211 million) through cost cutting and capex savings this year to offset production losses during a nationwide lockdown to fight the spread of the coronavirus.

“The approach pursued was to deliver capex reductions that supported the updated production profile whilst ensuring the long-term asset integrity and maximising immediate reduction in planned spend,” Amplats said.

The company said savings would come from cutting costs, delaying non-essential capital expenditure, reducing payment of overtime and production bonuses for employees not at work.

Total platinum group metals (PGM) production fell 7% in the first quarter to 954,800 ounces compared with the same period a year ago, with 61,000 PGM ounces lost in the quarter at its South African operations due to the impact of the nationwide lockdown, which started on March 27 and has been extended until May. ($1 = 18.9212 rand) (Reporting by Tanisha Heiberg; Editing by Susan Fenton)

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