Company news in brief

Amplats targets mines at 75-80% capacity

Anglo American Platinum expects to bring its mining production back up to 75% to 80% of capacity by the end of this year as South African mines recover from a forced COVID-19 shutdown, CEO Natascha Viljoen said yesterday.

Production lost during South Africa's early lockdown, when most mines in the country shut down, would probably not be recovered, she said.

Viljoen, who was appointed as CEO in April, estimated the platinum miner had spent R25 million on sanitation and personal protective equipment at its mines so far. Amplats has spent around R1 billion on the salaries of employees not at work, she said.

With Covid-19 screening procedures in place at the mines, Viljoen said she estimates they will have an infection rate of between 7% and 10%.

Under Amplats' risk assessments they would likely close a mine if 20% of workers test positive, Viljoen said, although if the workers are concentrated in a particular area of the mine they might close just one part of the mine. – Nampa/Reuters

Sasol revamp to cut jobs

South Africa's Sasol Ltd plans to cut jobs and end West African oil operations as part of a business revamp, the petrochemicals producer said yesterday, adding it had also agreed a deal with lenders to relax borrowing rules.

Sasol has been reviewing its business as it struggles with high debt levels, falling oil and chemical prices and lower global demand due to the Covid-19 pandemic.

The company, the world's top producer of motor fuel from coal, said the review had identified chemicals and energy as the focus areas for its future business.

Sasol said the revamp would affect its workforce, but did not say how many jobs might be lost. The company said it was seeking consultations with trade unions in South Africa and aimed to do the same in other countries.

It also said it had concluded discussions with lenders, adding they had agreed to waive a debt test due this month and relax one due in December 2020. That test will allow the firm to have net debt of four times earnings before interest, tax, depreciation and amortisation, up from three times previously. – Nampa/Reuters

BP raises US$12 bln

British oil major BP Plc raised US$12 billion of debt with equity-like features, taking advantage of low interest rates to fortify its balance sheet, the Financial Times reported on Wednesday.

The report of the fundraising comes days after BP decided to write off up to US$17.5 billion from the value of its assets, betting the Covid-19 crisis would pressure energy demand and accelerate a shift away from fossil fuels.

The oil company raised $5 billion, 4.75 billion euros (US$5.34 billion) and 1.25 billion pounds, the FT said, adding that BP locked in annual interest rates as low as 3.25% on some of its new euro notes.

BP had previously never raised money by issuing hybrid bonds, which place less of a strain on the balance sheet because the principal never has to be repaid, the newspaper said.

BP did not immediately respond to a Reuters request for comment. – Nampa/Reuters

Google sets 2025 leadership diversity goal

Alphabet Inc's Google announced a new hiring goal and security policy to address racial issues at its offices, as protests over police brutality against African Americans have carried into discussions about corporate culture.

Google chief executive Sundar Pichai said that by 2025, the company aims to have 30% more of its leaders be from underrepresented groups. About 96% of Google's US leaders are white or Asian, and 73% globally are men.

Pichai said all leadership openings now will be shared externally. Silicon Valley companies have often hired for top positions using secretive recruiting firms or internal promotions, making it difficult for people not connected to an employee to know of opportunities.

In addition, Pichai said Google would strive to be more inclusive, with steps such as eliminating an office security procedure that may have led to racial profiling.

Google and other tech companies have long instructed employees to ask for identification from people who sneak through secure doors behind employees who just unlocked them. – Nampa/Reuters

PepsiCo drops Aunt Jemima

PepsiCo Inc said it will change the name and brand image of its Aunt Jemima pancake mix and syrup, dropping a mascot that has been criticized for a racist history, amid a national debate over racial inequality in the United States.

The logo of the more than 130-year-old brand features an African-American woman named after a character from 19th-century minstrel shows. The offensive caricature is rooted in a stereotype of a friendly black woman working as a servant or nanny for a white family.

Following PepsiCo's move, ConAgra Brands Inc announced a full review of its Mrs. Butterworth's syrup, whose package is meant to evoke a "loving grandmother." Rice brand

Uncle Ben's said it was also considering updating its brand, which features a white-haired African-American man named after a Texas rice farmer.

The moves are part of Corporate America's reckoning with the treatment of African Americans amid weeks of protests over racism and police brutality after the death of George Floyd, a black man, in police custody in Minneapolis. – Nampa/Reuters