South Africa’s Sibanye Stillwater announced on Thursday that it will be closing its 4 Belt shaft at Marikana, resulting in the loss of 855 jobs. The decision was made after the company failed to return the shaft to profitability amid low platinum group metal (PGM) prices.
Like other industry players such as Anglo American Platinum and Impala Platinum, Sibanye is restructuring to cut costs following a significant drop in PGM prices last year. In February, the company had already cut 2,000 jobs as part of its efforts to restructure its PGM operations.
The 4 Belt shaft, which employed over 1,500 workers and 54 contractors, was initially slated for closure in 2019 but had continued operating due to a temporary increase in metal prices. However, Sibanye determined that it could no longer sustain the losses at the shaft.
Sibanye CEO Neal Froneman emphasized the need to prioritize the viability of the company’s operations, stating, “We cannot however continue to absorb ongoing losses, which in turn affects the viability of the rest of the SA PGM operations to the detriment of all stakeholders.”
In addition to the closure at Marikana, Sibanye also announced plans to restructure its South African gold operations, potentially resulting in the loss of over 4,000 jobs at its Beatrix 1 shaft. The company is also looking to make cuts at its Kloof 2 plant following the closure of the Kloof 4 shaft in 2023.
The mining industry in South Africa continues to face challenges amid a volatile market, leading companies like Sibanye Stillwater to make tough decisions to remain competitive.
