[LISTEN] How Impala Platinum will cut 13 000 jobs in just two years
Impala Platinum Mine has confirmed that it will cut its production at the Rustenburg plant – resulting in the retrenchment of 13 000 workers.
Thirteen thousand people will return to the job market after the platinum giant announced its plans to drastically cut production.
The local platinum industry is grappling with rising costs and weak prices for the precious metal.
The drastic restructuring of its Rustenburg plant will see operations cut substantially.
Spokesperson Johan Theron says shafts will be reduced, production cut and jobs shredded as the second-largest platinum mine aims to “transition the operation to a sustainable future position”.
“Impala Rustenburg’s mining footprint will be reduced from eleven to six operating shafts as operations conclude at end-of-life and uneconomical shafts.”
The mine in the North West currently employ 42 000 workers which will be reduced to 27 000 in the next two years.
It is also planning to decrease production from the current 750 000 to 520 000 ounces platinum per annum.
The restructuring process will cost the company R2.7 billion.
“The only option for conventional producers today is to fundamentally restructure loss-making operations to address cash-burn and create lower-cost, profitable businesses that are able to sustain operations and employment in a lower metal price environment,” says Theron.