African Rainbow Minerals ARM, the diversified mining company owned by Africa's first Black billionaire Patrice Motsepe, has suspended operations at its struggling Bokoni platinum mine after posting a sharp drop in annual earnings.
The company said Friday the shutdown will allow it to work on a revised mining plan for the Limpopo-based mine, after mounting losses and rising costs. ARM booked a R2.2 billion 125 million impairment at Bokoni, citing delays in ramping up operations and a change in mining method.
Headline earnings , which strip out one-off items such as impairments, fell 47 percent to R2.7 billion 153.6 million for the year ended June 30, down from R5.1 billion 289.6 million a year earlier. Basic earnings slid to R330 million 18.8 million from R3.1 billion 176.8 million.