Anglo American Platinum (Amplats) is set to retrench 3700 employees or 17% of its workforce, due to the low platinum group metal (PGM) price environment, ongoing macroeconomic pressures, and a massive cut in profit from 2022.
A price decline combined with higher costs reduced Amplats’ earnings before interest, taxes, depreciation, and amortisation (EBITDA) by 67% to R24 billion ($1.26 billion) in 2023 and a mining EBITDA margin of 35%.
Its headline earnings for 2023 was R14 billion ($739 million), 71% lower than the previous year.
The PGM miner said the move is meant to strengthen the company’s competitive position and long-term sustainability.
It said that contracts with 620 service providers are in scope for review.
Amplats said the process will involve a period of consultation with stakeholders, including trade unions and other affected non-unionised employees.
It said the final number of impacted jobs would be known once consultations have been concluded.
“We have worked hard to address aspects in our business that are impacted by both the global and local challenges currently facing the PGM industry and have already implemented several key cost-saving initiatives,” said Amplats chief executive Craig Miller.
He said the company is optimistic about the long-term demand for the PGMs and the important role they play in creating a greener world.
“We will continue to take the steps necessary to ensure the long-term viability of the business and remain committed to our strategic priorities with an ongoing focus on safety, operational excellence and organisational effectiveness to position Anglo American Platinum for a sustainable future,” said Miller.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
