Mining multinational and metals processing group, Sibanye Stillwater, has launched a restructuring process that could lead to a loss of over 4 000 jobs.
The process is expected to affect four of its shafts and associated services at its South African platinum operations.
Sibanye’s Head of Investor Relations, James Wellsted, has attributed the looming job cuts to the increase in operational costs, wages and inflation on imports which have added cost pressures to the industry.
“This year we’ve seen a significant decline in the price of PGM’s (platinum group metals) largely driven by the global macro-economic outlook and the outlook for the global auto industry and as a result, the global industry is facing very squeezed margins and significantly under water in many areas.”
Wellsted also says their hope is to find a mutual outcome that can minimise job losses and ensure a longer life for some of the shafts.
“So, what we’re doing is we’ve identified these shafts that are loss-making and posing a risk. And we will now enter into a mandatory 60-day consultation period with the affected employees and their representatives in order to try and find alternatives to closure which may then minimise or reduce the number of jobs that are at risk.”
VIDEO | Thousands could face retrenchment as Sibanye Stillwater enters Section 189 consultations:
