South African platinum giant plans to cut 1,114 jobs

Sibanye-Stillwater has entered into Section 189 consultations regarding the proposed restructuring of its Kwezi shaft.

This shaft, which forms part of Sibanye’s Southern Africa platinum group metals (PGM) operations, has been loss-making for years.

The Section 189 consultations could affect 781 employees and 333 contractor employees.

Sibanye announced this move on Tuesday, 8 September, saying the Kwezi shaft is approaching the end of its economic life.

Kwezi is a mature underground PGM shaft within its Rustenburg operation, where mining has reached the limits of the approved mining license area.

“The company has implemented various initiatives over several years to extend the shaft’s life, including reserve optimisation and boundary adjustments,” Sibanye said. 

The company explained that a Kwezi Shallows project was recently proposed that could have allowed it to access available shallow up-dip mineral resources.

This project was expected to add reserves and support future production.

“However, stakeholder objections, appeals, and delays in required approvals have prevented the project from progressing as planned,” the miner said. 

“The absence of these additional reserves has accelerated depletion of the remaining mining inventory and weakened the shaft’s sustainability.”

Sibanye explained that Kwezi reported losses of R208 million in 2024 and R91 million in 2025. 

“Although stronger PGM prices supported positive margins during the first half of 2026, Kwezi is forecast to return to losses during the second half of 2026 as production declines,” it said.

“Based on the outcome of a detailed operational and financial review of Kwezi shaft, the company considers it necessary to commence a Section 189A consultation process regarding the proposed restructuring of Kwezi shaft.” 

Sibanye said the consultation process will consider measures to avoid or minimise job losses, mitigate the impact on affected employees, and, where possible, evaluate alternatives. 

While no final decision has been made, Sibanye said the proposed restructuring could affect 781 employees and 333 contractor employees.

“We acknowledge and are sensitive to the uncertainty that consultation processes create for employees and their families and remain deeply committed to engaging constructively throughout the process,” Sibanye CEO Richard Stewart said. 

“Unfortunately, given the depletion of economically mineable reserves and the corresponding declining financial outlook, it is necessary to commence consultations regarding the future of Kwezi shaft.”