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Sibanye-Stillwater to axe 4,000 jobs in gold mines restructuring

Sibanye-Stillwater (JSE: SSW)(NYSE: SBSW) said on Thursday that the planned reorganization of its four gold operations in South Africa could potentially impact 4,022 people — 3,107 employees and 915 contractors. 

The precious metals producer kicked off in October a business review at its gold mines in the home country, which revealed the need to address losses at Beatrix 1 shaft and Kloof 4 shaft. 

The precious metals producer noted Beatrix 1 has failed to achieve the planned production, while Kloof 4 shaft has been already shut. 

The planned move is in line with the Sibanye-Stillwater’s previous cost-cutting measures, that saw it axe jobs at all its platinum group metal (PGMs) operations, including those in the United States.

Prices for the main PGMs — platinum and palladium — plummeted by about 38% and 63%, respectively, in 2023.

The company has faced headwinds at its US operations beyond issues related to the price collapse of PGMs, used in catalysts that curb toxic vehicle emissions. Those mines have been affected by weather-related incidents, particularly flooding.

Job losses are also expected at the miner’s Kloof 2 plant, which has had insufficient processing material after the Kloof 4 shaft was closed last year, Sibanye-Stillwater added.

“We continue to act prudently to protect the balance sheet and ensure the sustainability of the Group. We are committed to constructively engaging with affected employees and through their representatives to minimize job losses,” chief executive Neal Froneman, said in the statement.

Sibanye-Stillwater’s boss recently indicated his company is considering raising about $500 million through prepayment arrangements, such as metals streaming, to strengthen its cash position.

Source: MINING.COM – Read More