Sibanye concludes restructuring negotiations at its South African PGM operations

Multinational mining and metals processing group Sibanye-Stillwater has concluded consultations with stakeholders regarding the proposed restructuring of four shafts at its South African platinum group metal (PGM) operations, with 1 208 employees granted voluntary separation or early retirement packages and 47 employees retrenched.

About 800 contractor employees were also impacted, the group says.

“While the decision to close or restructure operations is never taken lightly, the Section 189 consultation process encouragingly achieved the necessary 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.

"We acknowledge and thank all stakeholders for their constructive engagement,” says CEO Neal Froneman.

Sibanye in October last year announced that 3 000 employees and 595 contractors could be impacted on by the proposed restructuring at the Simunye shaft, at the Kroondal operation; the 4Belt (4B) and Rowland shafts, at the Marikana operation; and the Siphumelele shaft, at the Rustenburg operation.

Following constructive consultations, the Simunye shaft, which ceased production last year, has been closed.

The Rowland and Siphumelele shafts remain in operation but have been repositioned for sustainable levels of production at a lower cost structure.

The 4B shaft will continue to operate on there being no net losses on a monthly basis, but if this is not sustained, and subject to certain other conditions, the shaft will be closed.

Sibanye points out that about 1 496 employees and 54 contractors are employed at the 4B shaft.

It adds that there were 467 fewer potentially affected employees due to natural attrition since September 1, 2023, while 351 employees accepted transfers to other shafts at the South African PGM operations to fill vacancies owing to natural attrition since the start of the Section 189 process.  

Amid lower PGM prices, South African producers are facing profitability challenges, with Anglo American Platinum having announced that it may cut up to 3 700 jobs.