Impala Platinum (Implats) IMPJ.J said on Friday the restructuring of its South African operations could lead to 3,900 job losses as it battles to contain costs amid low metal prices.
Mining companies in the world’s top platinum supplier are shelving expansion projects, closing some operations and letting go of thousands of workers in a bid to preserve cash as metal prices plunge.
Implats said it was resorting to jobs cuts as its cost savings, deferment of capital projects and a voluntary severance scheme had “not sufficiently offset the impact of persistently lower prices” on the business.
Platinum is 7% down so far this year, while palladium is 10% lower since the beginning of the year.
“This has significantly undermined Implats’ financial position, which in turn threatens future job security for the entire workforce,” Implats CEO Nico Muller said in a statement.
Job losses are hot-button issues in the lead-up to a general election on May 29, where polls suggest the African National Congress could lose its parliamentary majority for the first time since the end of apartheid.
(Reuters)
