Sibanye-Stillwater, a major South African mining company, has announced plans to restructure its gold operations in order to cut costs, potentially leading to the loss of over 4,000 jobs. The company revealed that the restructuring was necessary due to a significant annual loss of $2 billion in 2023, primarily caused by a decline in metal prices.
The proposed job cuts would mainly affect employees and contractors at the Beatrix 1 shaft and the Kloof 2 plant, which have underperformed in terms of production due to various factors. In addition, the company mentioned that administrative roles would also be reduced as part of the restructuring process.
Sibanye-Stillwater emphasized the importance of protecting its balance sheet and ensuring the sustainability of the group amidst challenging market conditions. CEO Neal Froneman assured that the company would act prudently in making these difficult decisions.
However, trade unions in South Africa, including the National Union of Mineworkers (NUM) and Solidarity, strongly criticized the planned job cuts, referring to them as “shocking capitalist barbarism.” The unions vowed to fight against the layoffs and protect the interests of their members during the upcoming wage negotiations with the company.
Sibanye-Stillwater has already implemented job cuts in its platinum group metal operations in response to falling metal prices. The company reported impairments in its international mines, signaling the financial pressures it faces in the current market environment.
