Bushveld CEO Craig Coltman
Vanadium producer Bushveld Minerals will embark on retrenchments at its head office just ahead of Christmas as part of cost-cutting measures aimed at ensuring the long-term competitiveness and financial stability of the company.
In an announcement to shareholders on December 13, the company said “rightsizing the headcount” at its head office was owing to a renewed focus on its core operational assets, Vametco and Vanchem. This comes as Bushveld disposes of some of its other assets, including its downstream energy assets and the Mokopane development project.
“Our priority remains the safety and wellbeing of our employees, and we are committed to supporting them through this process. As we navigate these challenges, we are confident that these measures will fortify Bushveld Minerals for long-term resilience and continued success in the dynamic commodity landscape,” Bushveld CEO Craig Coltman said.
About 40% of the company’s head office positions will be impacted by the retrenchments, a strategic move that is expected to result in savings of about $1.5-million a year.
“Over the past months, Bushveld Minerals has initiated several cost-saving initiatives, including a strategic ore sourcing programme and a moratorium on recruitment across the business.
“The challenges posed by global market conditions and the need for sustained operational stability have compelled us to take further strategic measures, including a reduction in our group head office staff,” Coltman explained.
Bushveld Minerals said these measures were essential for navigating the current market conditions and ensuring the company's continued competitiveness throughout the commodity cycle.
As such, Bushveld remains on track to meet its 2023 group production forecast of 3 700 t to 3 900 t of vanadium. However, owing to repeated refractory failures at Vanchem in December, the decision was taken to bring forward 12 days of the 2024 kiln reline programme, which will impact on Vanchem’s production for December.