Restructuring of South Africa's platinum group metals (PGM) industry in response to rising costs and falling prices could result in between 4,000 and 7,000 job cuts, the country's Minerals Council announced on Monday.
South African PGM miners, which account for about 70% of the world's platinum mining, are discussing the need to rebuild unprofitable production, the council said at the start of the Africa Mining Investment Indaba in Cape Town. It was announced at
The Minerals Council said the sector, which relies heavily on car manufacturers' use of PGMs to control engine emissions, faces “significant uncertainty” as the world turns to electric vehicles. He said he is doing so.
South Africa, the world's top PGM producer, is home to some of the world's oldest and deepest platinum mines, which are expensive to operate, especially when metal prices are low.
Palladium and platinum prices fell by 40% and 15% respectively last year, mainly due to weak demand in China.
The Minerals Council said in a statement that electricity and labor costs account for the majority of total costs for PGM miners.
“In light of this, various prominent PGM miners are restructuring their operations, potentially impacting between 4,000 and 7,000 jobs,” it added.
Anglo American CEO Duncan Wanblad told Indaba attendees that miners' margins, faced with declining ore grades and sharply rising input costs, “are quickly evaporating.” “I'm going to have a hard time,” he said.
“What is important is the ability of the industry and government to overcome these challenges to ensure that the industry survives and thrives. Of course, there is a reduction in the direct workforce, but this is the reality that the industry is currently facing.” he said in his lecture. Cape Town Conference.
Anglo's South African PGM unit Anglo American Platinum (Amplats), which employs more than 20,000 workers in South Africa, is reviewing its costs.
Overall, Anglo American aims to cut capital spending by $1.8 billion by 2026, after reporting lower profits and profits in the first half of its financial year.
Sibanye-Stillwater, South Africa's largest mining sector employer, also said the planned restructuring could lead to the closure of four loss-making PGM shafts and the loss of 4,095 jobs.
Impala Platinum said it is offering voluntary job cuts to employees at its South African operations.