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Anglo American to sell mines after strike

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Anglo AmericanAnglo American Platinum said it plans to sell some of its mines as it announced profit in the first half of the year plunged, after it lost more than a third of annual production due to a five-month-long strike.

"Both management time and capital are finite," the company said in a statement. "The decision has been made to possibly exit certain assets that will be better placed in the hands of a new owner."

Anglo American Platinum said it will exit its Union and Rustenburg mines in South Africa and its Pandora joint venture. The company said it's still assessing its Bokoni operation. Anglo American Platinum said it plans to retain its smelting and refining operations in both Union and Rustenburg.

The news to exit some of its platinum mines comes after a debilitating five-month-long platinum strike, the longest in South Africa's history.

As a result of the strike, Anglo American Platinum, majority-owned by Anglo American plc, reported a much lower net profit in the first six months of the year ended June 30 of 429 million rand ($39 million) compared to a net profit of ZAR1.22 billion rand in the year-earlier period.

The company said equivalent refined production during the period fell to 715,000 ounces from 1.18 million ounces in the first half of 2013. Refined platinum sales for the first half of 2014 fell to 1.04 million ounces on the year compared to 1.074 million ounces.

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