Sibanye-Stillwater to cut 2,600 jobs in South Africa

Sibanye-Stillwater (JSE: SSW; NYSE: SBSW) has reduced the number of job cuts across its South African platinum group metal (PGM) operations to 2,600 after talks with labour unions and communities.

The precious metals producer is proceeding with the announced closure of the Simunye shaft, which ceased production last year, while it keeps the Four Belt shaft at Marikana open, it said on Friday.

Sibanye-Stillwater started a restructuring process in October at its four loss-making mines that was expected to cut 4,095 jobs. 

The Marikana mine shaft, which employs 1,496 permanent workers and 54 contractors, will only stay in production if it does not run up net losses on a monthly basis, the Johannesburg-based company said. 

Two other shafts, Rowland and Siphumelele, were hit by operational and geological issues and “have been repositioned for sustainable levels of production at a lower cost structure,” Sibanye-Stillwater said.

Almost 1,300 employees had voluntarily left their jobs or accepted early retirement packages while 467 people left since September due to natural attrition, the company said.

The job cuts follow a 91% loss for 2023 due to multiyear-lows in PGM prices. The company also flagged an impairment charge of 47.5 billion rand ($3.3 billion). 

Palladium and platinum price declines also have driven rivals to slash costs. Impala Platinum Holdings (JSE: IMP) has offered voluntary job cuts. Anglo American‘s (LSE: AAL) platinum unit said on Monday it would cut 3,700 jobs at its South African operations, 17% of its workforce, after its profit plunged 71% last year.