Anglo American Platinum H1 earnings surge on higher metal prices

Anglo American Platinum, a leading mining company, has recently announced record-breaking half-year earnings, with a surge of 572 percent, driven by higher metal prices and increased output. The remarkable performance has allowed the miner to pay out a record dividend, comprising both a base dividend and a special dividend. Natascha Viljoen, the CEO of Anglo American Platinum, joined CNBC Africa to discuss the company's exceptional results for the six months ended June. During the interview, Viljoen expressed confidence in the company's ability to maintain its momentum in the second half of the financial year despite challenges faced in the previous year due to disruptions in the value chain caused by the COVID-19 pandemic. She emphasized that efforts have been made to reestablish the value chain, ensuring continued operational success in the coming months. A significant development that Viljoen highlighted was the recent increase in the threshold for embedded self-generation of electricity in South Africa to 100 MW. This policy change is expected to benefit mining companies, including Anglo American Platinum, in their transition towards renewable energy sources. Viljoen outlined the company's plans to integrate renewable energy into its operations as part of its decarbonization strategy, with a target to shift to renewables for the entire business by 2040. The first step in this direction involves the application of renewables at the Mocholakwina operations, accounting for a quarter of the company's energy consumption. A partnership is being finalized to build a 100-megawatt PV plant to generate green hydrogen, which will initially be used in the company's fuel cell-driven haul trucks. This initiative not only contributes to the reduction of carbon emissions but also supports technological advancements in the hydrogen economy. In terms of safety and employee well-being, Viljoen acknowledged concerns regarding the rise in the injury frequency rate, attributed partly to the impact of COVID-19 infections on-site. To address this issue, Anglo American Platinum has increased personnel capacity, intensified leadership involvement in promoting operational discipline and safety, and enhanced support for mental health and medical needs of employees affected by COVID-19. Moreover, the company has boosted its Wellness Kana (WK) program contributions by 400 million to provide support to employees, communities, and contribute to the broader economic recovery efforts in South Africa following recent social unrest. The commitment to sustainability, operational excellence, and employee welfare underpins Anglo American Platinum's strategic vision for continued growth and responsible business practices.