JSE- and NYSE-listed Sibanye-Stillwater on Wednesday announced that it would cut about 300 positions at its platinum group metal (PGM) mines in the US, as part of a restructuring to reduce operating and capital cost structures amid a drop in palladium prices.
The restructuring will affect about 100 Sibanye-Stillwater employees, the majority of whom are employed at the Stillwater mine, and the remainder spread between East Boulder, the Columbus Metallurgical Complex and Columbus offices.
This followed attrition of about 20 employees since the beginning of October.
The restructuring will also affect about 187 contract workers across the sites.
“We have taken decisive action to address costs at the US PGM operations, to ensure the sustainability of these long-life operations during a challenging period of lower-than-anticipated PGM prices. This is not a decision we have taken lightly, and we will engage frankly and candidly with affected stakeholders during this challenging period,” said Sibanye-Stillwater CEO Neal Froneman.
The restructuring will not significantly reduce current mine production or recycling production, but it will lower the costs and capital substantially.
Froneman previously warned that the PGMs industry may suffer job losses as a result of the low PGMs price environment.
Last month, Sibanye-Stillwater announced a restructuring and shaft closures in South Africa, affecting nearly 4 100 employees and contractors.