South Africa: Amplats and Implats Declare Forces Majeures, Employees to Be Paid During Lockdown

(file photo).

Anglo American Platinum and Impala Platinum have had to declare force majeure on some contracts. Most South African mining companies are probably in the same boat during the 21-day lockdown.

In a generic letter to suppliers obtained by Business Maverick, Anglo American Platinum (Amplats) says:

"We refer to the Agreement between the parties. In light of the Covid-19 crisis and the measures imposed by the Government of the Republic of South Africa... together with the announcement made on 23 March 2020 by the President of the Republic of South Africa, the Company's performance of its obligations under the Agreement cannot be performed for reasons outside the reasonable control of the Company and therefore the Company is issuing this Force Majeure Notice and all obligations are suspended for the duration of the Force Majeure period."

Amplats spokeswoman Jana Marais confirmed this was the case.

"Anglo American Platinum confirms that due to the 21-day lockdown period imposed by the Government of South Africa to halt the spread of Covid-19 in the country, it has moved the bulk of its operations to care and maintenance. As a result, we've unfortunately had to declare force majeure on certain supplier contracts for goods and services...

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