Jinchuan's S.African PGM project to cut 75% of workforce amid price rout

Jinchuan International Resources

27/11/2023 12:01

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      S.African PGM sector faces job losses as prices fall
    

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      Wesizwe to cut 571 jobs amid project delay
    

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      Delay blamed on unrest, strike and operational stoppages
    

  
    By Nelson Banya
       Nov 27 (Reuters) - Jinchuan Group International
Resources'  2362.HK  South African platinum group metal (PGM)
project will cut about 75% of its workforce as it restructures
operations amid a sharp decline in metal prices and operational
disruptions.
    Wesizwe Platinum   WEZJ.J , 45% owned by the top Chinese
miner Jinchuan, said on Monday it was restructuring its Bakubung
platinum project as it deals with the impact of the "downturn in
the mining industry", a recent five-week wildcat strike and
community unrest over the past two years.
    The price for major PGMs platinum and palladium, which are
mainly used by automakers to curb emissions, are down about 11%
and 40% so far this year, respectively. Demand for palladium has
been particularly hit by weakening consumption in China.
    Wesizwe has begun mandatory consultations that could result
in the loss of 571 jobs at the Bakubung project out of the
current workforce of 761 employees, it said in a statement. 
    The company said continuing without job cuts "would not be
reasonable or viable", and there was a "need to implement
measures to improve efficiencies and to ensure that Bakubung is
placed on the path of profitability and growth".
    Wesizwe has already stopped overtime and weekend work and is
also not renewing fixed-term contracts of non-critical staff, it
added.
    The company had planned to start production at Bakubung in
the second half of 2023, but was delayed by industrial action
between July and August. Bakubung was expected to reach 420,000
PGM ounces annually, employing 3,135 workers.
    South Africa's top global PGM miners Anglo American Platinum
 AMSJ.J , Impala Platinum  IMPJ.J  and Sibanye Stillwater
 SSWJ.J  are all looking to restructure their businesses in
response to the metal price decline.
    Sibanye last month said its planned restructuring, targeting
four loss-making PGM shafts in South Africa, could potentially
result in the loss of 4,095 jobs. 
    Impala on Nov. 7 said it had started voluntary job cuts at
its South African operations in a bid to cut costs in the face
of falling metal prices.

 (Reporting by Nelson Banya; Editing by Jan Harvey)
 ((Nelson.Banya@thomsonreuters.com;))