Impala Platinum is considering a restructuring exercise at its South African operations, which will potentially affect 3900 employees.
This equates to a 9% reduction in labour across the group’s Impala Rustenburg, Impala Bafokeng and Marula operations, as well as at the corporate office, which is targeting a 30% reduction in head office costs.
“Platinum group metal (PGM) pricing has declined sharply since the start of 2023, which, together with persistent inflationary pressures on input costs, has resulted in significant pressure on profitability and cashflow across the entire PGM sector, our operations included,” said Implats chief executive Nico Muller.
“Global macroeconomic uncertainty and rising geopolitical tensions present additional downside risks to industry sustainability. As a result of these pressures, the group has assessed and revised its business planning parameters and contemplated various measures to optimise operational efficiencies and resources.”
He said cost-saving, capital-deferment and voluntary labour-reduction initiatives to date failed to sufficiently offset the impact of persistently lower prices.
“This has significantly undermined Implats’ financial position, which in turn threatens future job security for the entire workforce,” said Muller.
Implats’ Zimbabwean unit, Zimplats said in March that it was implementing voluntary redundancy packages for its employees as a cost-cutting measure in response to the depressed metal prices.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
