flickr- Julien Harneis
Mining corporation Anglo American Ltd is expected to meet with South African government and labour union officials amid plans to shut down four mine shafts in the Rustenburg region.
The talks are scheduled to take place before the closures and cuts come into effect, which will likely lead to the loss of 14,000 jobs and a 20% drop in annual platinum production. Company profits are estimated at $45 million.
Whilst investors are looking forward to reduce the supply of platinum production, South African union leaders have pledged to fight the decision.
Miner demands for higher wages crippled production in the country's mining sector in 2012. Anglo American, however, claims that the restructuring plans are not due to labour strikes. The company has proposed to replace mining job losses with the creation of jobs in the construction of housing and infrastructure.
Following the announcements of the possible closures platinum prices overtook gold prices for the first time in 10 months.
The proposed changes take place amid management restructuring for the company, who is set to welcome a new CEO in April 2013.