Global mining and metals processing group Sibanye-Stillwater will start consultations with organised labour and non-unionised employees regarding the proposed restructuring of the Kwezi shaft – an underground platinum group metals (PGMs) shaft within the group's Rustenburg operation.

The miner notes that mining at the shaft has reached the limits of the approved mining licence area and that the shaft is, therefore, approaching the end of its economic life.

The proposed restructuring could potentially affect about 781 employees and 333 contractor employees.

"We acknowledge and are sensitive to the uncertainty that consultation processes create for employees and their families and remain deeply committed to engaging constructively throughout the process. Unfortunately, given the depletion of economically mineable reserves and the corresponding declining financial outlook, it is necessary to commence consultations regarding the future of Kwezi shaft," says Sibanye-Stillwater CEO Richard Stewart.

Sibanye-Stillwater points out that the shaft incurred losses of about R208-million in 2024 and R91-million in 2025. 

Further, although stronger PGM prices supported positive margins during the first half of this year, the shaft is forecast to return to losses during the second half of the year as production decreases.

The company says it has implemented various initiatives over several years to extend the shaft's life, including reserve optimisation and boundary adjustments.

"A recently proposed Kwezi Shallows project that had an opportunity to access available shallow up-dip mineral resources was expected to add reserves and support future production; however, stakeholder objections, appeals and delays in required approvals have prevented the project from progressing as planned. The absence of these additional reserves has accelerated depletion of the remaining mining inventory and weakened the shaft's sustainability," Sibanye-Stillwater states.

Consultations under Section 189A of the Labour Relations Act will consider measures to avoid or minimise job losses, mitigate the impact on affected employees and evaluate alternatives that may improve the shaft's viability. 

US PGM STRIKE
Meanwhile, South African labour union the National Union of Mineworkers (NUM) has pledged its "unwavering solidarity" with the United Steelworkers (USW) union, whose members embarked on strike action at Sibanye-Stillwater's Stillwater East PGM mine and Columbus metallurgical facility, in the US, from September 3.

Sibanye-Stillwater noted in a September 2 statement to shareholders that it has been engaging with the USW for more than four months to conclude a new collective bargaining agreement, with the aim of reaching an agreement that appropriately recognises employees' interests while enabling the operational changes required to secure the longer-term sustainability of the US PGM operations.

Stewart pointed to the need to reduce the unit operating costs at Sibanye-Stillwater's US PGM operations to secure the long-term future of the operations.

"We have a clear plan to secure the future of these operations. However, if that plan cannot be implemented and the operations remain unsustainable, there may ultimately be no viable basis for the continued operation," he warned.

The NUM has accused Sibanye-Stillwater of wanting to implement "sweeping operational changes" that would raise workers' healthcare costs and erode baseline earnings.