Sibanye-Stillwater has wrapped up its restructuring process for four shafts at its South African platinum group metal (PGM) operations. The process resulted in 1,208 employees accepting voluntary separation or early retirement packages, with an additional 47 employees being retrenched. The restructuring also affected approximately 800 contractor employees.
The company initiated this process to address unprofitable operations and ensure the long-term viability of its South African PGM operations. CEO Neal Froneman expressed gratitude towards all stakeholders for their constructive participation in the consultations, emphasizing the importance of making difficult decisions to maintain sustainability.
Originally, Sibanye announced the potential impact on 3,000 employees and 595 contractors due to the restructuring at various shafts, including the Simunye, 4Belt (4B), and Rowland shafts, as well as the Siphumelele shaft. Post-consultations, the Simunye shaft has been closed, while the Rowland and Siphumelele shafts have been adjusted for sustainable production at reduced costs. The 4B shaft's operation continues conditionally, based on maintaining a break-even status.
The restructuring has led to a reduced number of potentially affected employees due to natural attrition and internal transfers to fill vacancies in other shafts, mitigating the overall impact of the restructuring.
This move comes amid declining PGM prices, posing profitability challenges for South African producers, including Anglo American Platinum, which also announced potential job cuts. Sibanye-Stillwater's restructuring marks a significant step in adapting to the challenging economic environment, aiming to preserve the value and benefits their operations bring to various stakeholders.
