South African platinum miner, Impala Platinum, will cut 13 000 jobs over the next two years, it said on Thursday, as the local platinum industry grapples with rising costs and weak prices for the precious metal.
The strategic orientation has been informed by a significant decline in the dollar-platinum price and sustained high mining cost inflation.
The miner will reduce employees, including contractors, to 27 000 over the two-year period from about 40 000 at the end of the 2018 financial year.
Implats, the world’s second biggest platinum producer, has been struggling with operational supply issues and low platinum prices which have made many of its flagship Rustenburg shafts unprofitable.
As part of the review, it will reduce Impala Rustenburg’s operating shafts to six from 11 as operations conclude at life and uneconomical shafts, while future production will fall to 520 000 ounces per annum from 750 000 ounces.