The mining company said the Section 189 A process could affect 3,700 jobs, including fixed-term employees, across its South African operations.
Following a sharp fall in commodity prices, Anglo American Platinum (Amplats) has begun a restructuring process that could put more than 4,000 jobs at risk.
In a shareholder announcement on Monday, the mining company said the Section 189 A process could impact 3,700 jobs, including fixed-term employees, across its South African operations. Amplats has also begun the process of reviewing its service providers, which could impact an additional 620 jobs.
The announcement comes after the company's platinum group metal (PGM) dollar basket price in 2023 fell 35% to its lowest level in four years.
Amplats CEO Craig Miller said the company's efforts to reposition its business amid the commodity downturn “haven't gone far enough.”
“These measures will enable the continued employment of thousands of workers and contractors, share value with host communities, pay taxes and royalties to governments, and procure goods and services from local suppliers. “It is necessary for this,” he added.
Amplats announced on Monday that its headline profit for 2023 was down 71% from a year earlier.
Earlier this month, the Minerals Council said South African PGM miners were “increasingly discussing the need for restructuring” following falling prices and rising input costs. Mining organizations say the restructuring puts between 4,000 and 7,000 jobs at risk.
In October last year, Sibanye-Stillwater, South Africa's largest mining employer, revealed it was considering closing two end-of-life shafts at its PGM operations in South Africa. The remaining two companies will also need to restructure “to achieve sustainable production” following the plunge in PGM prices. The proposed restructuring and closure of the shaft puts 4,095 jobs at risk.
In an interview with email and guardian Earlier this month, Sibanye-Stillwater CEO Neil Froneman said the company had nearly completed its restructuring, adding that it had been able to complete the restructuring with minimal job losses. .
