Sibanye-Stillwater, the multinational precious metal mining group led by South African businessman Neal Froneman, has announced that it has cut 2,600 jobs at its platinum mines. This is part of an internal restructuring aimed at lowering operational expenses.
In response to challenging market conditions, the latest move follows extensive discussions with labor unions as part of the company’s broader initiative to restructure unprofitable operations.
Sibanye-Stillwater, grappling with recent challenges in the operating environment, disclosed earlier this week its anticipation of reporting a loss for the previous year. Slumping platinum-group metals prices, coupled with operational challenges across its businesses, resulted in impairments totaling R47.5 billion ($2.5 billion).
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Neal Froneman, the CEO of Sibanye-Stillwater, emphasized the necessity of these measures in a statement released on Friday, affirming that the restructuring initiative aims to salvage the sustainability of the company’s South African platinum group metals (PGM) operations.
Since September, nearly 1,300 employees chose voluntary separation or early retirement, with an additional 467 departures due to natural attrition, according to the Johannesburg-based firm. Involuntary job cuts affected 47 employees and 805 contractors. The company has already trimmed nearly 1,500 jobs at its South African gold operations and is streamlining the workforce at its high-cost Stillwater palladium mine in the US.
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As a multinational mining company with operations spanning South Africa and interests in gold and base metal projects across the Americas, Sibanye-Stillwater remains a significant player in the global precious metals industry.
Froneman, who has been instrumental in the company’s evolution into a leading producer of platinum, palladium, and gold, presently holds a 0.3-percent stake in the group which translates to 8,382,849 shares.
The recent announcement of job cuts aligns with the broader challenges facing Sibanye, evident in the $2.52 billion impairment charge reflected in its financial statements for the fiscal year ending Dec. 31, 2023. This impairment is linked to the sustained downturn in platinum group metals (PGM) prices, a trend that has adversely impacted mining companies worldwide.
