Sibanye-Stillwater has reached a consensus with relevant parties concerning the restructuring plan for four shafts located at its platinum group metal (PGM) operations in South Africa.
A total of 1,208 employees were offered voluntary separation or early retirement incentives, whereas 47 employees were laid off.
Approximately 800 contractor workers were also impacted, according to the miner.
“While the decision to close or restructure operations is never taken lightly, the Section 189 consultation process encouragingly achieved the requirement of addressing loss-making operations and ensuring the sustainability of our South African PGM operations and the benefits and value they bring to multiple stakeholders,” said company chief executive Neal Froneman.
Sibanye had said in October 2023 that the proposed restructuring at the Simunye shaft, Kroondal operation; the 4Belt (4B) and Rowland shafts, Marikana operation; and the Siphumelele shaft, Rustenburg operation, could affect 3,000 employees and 595 contractors.
Production at the Simunye shaft has ceased after being inactive since last year.
Although the Rowland and Siphumelele shafts continue to function, they have been repositioned to achieve cost-effective production levels that are sustainable.
The 4B shaft will remain operational provided that there are no monthly net losses. However, in the absence of such losses, in addition to other conditions, the shaft will be shut down.
Sibanye notes that the 4B tunnel is staffed with approximately 1,496 employees and 54 contractors.
It further states that since September 1, 2023, there have been 467 fewer potentially affected employees as a result of natural attrition, and 351 employees have accepted transfers to other shafts at the South African PGM operations to fill vacancies caused by natural attrition since the commencement of the Section 189 process.
Profitability issues are confronting PGM miners in South Africa, and Anglo American Platinum has announced it may retrench 3,700 employees.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
