Amplats reduces its annual production estimate due to force majeure

South Africa’s Anglo American Platinum (Amplats), the world’s leading platinum group, reduced its 2020 production outlook on Friday due to « force majeure ». Located 141 km from Johannesburg, the Waterval foundry plant in Rustenburg was damaged after an explosion inside the converter on 10 February, the company said today, explaining that « it had no choice but to temporarily shut down the unit to ensure the safety of all employees and thus avoid a catastrophic event ». As a result, Amplats has reduced its total metal production forecast for 2020 from a range of 4.2 million to 4.7 million ounces to 3.3 million to 3.8 million ounces. Investors were caught short and immediately sanctioned the stock on the Johannesburg Stock Exchange, with the group’s share price dropping nearly 20% during the session.