Sibanye-Stillwater has announced that it has cut approximately 2,600 jobs at its South African platinum mine following discussions with trade unions over the restructuring of unprofitable operations.
Sibanye said earlier this week that it expected to be in the red last year after a downturn in platinum group metals and operational problems across the business forced it to take a 47.5 billion rand ($2.5 billion) impairment loss.
Read: Amplats considers cutting 3,700 jobs as metal prices fall
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In South Africa, Sibanye will close its platinum shaft, which has ceased production, in 2023, reduce production at two other locations, and could close a fourth shaft if the company runs a monthly loss. Chief executive Neil Froneman said in a statement on Friday that the consultation process, which began in October, “achieved the necessary requirements of addressing loss-making operations and ensuring the sustainability of the SA PGM business”. said.
Read: Worst week for mines as layoffs accelerate
The Johannesburg-based company said around 1,300 employees had taken voluntary redundancy or early retirement packages, but 467 had left the company due to “natural attrition” since September. An additional 47 employees and 805 contractor jobs were eliminated.
The company has already cut nearly 1,500 jobs at its South African gold operation and at its high-cost Stillwater palladium mine in the United States.
Read: Impala Platinum begins voluntary job cuts at SA mine
Sibanye's South African peers Anglo American Platinum and Impala Platinum Holdings reported sharp declines in profits last year.
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