Implats looks to cut 3,900 jobs in South Africa

Impala Platinum (Implats) announced today that it initiated a Section 189 consultation process at its South African operations, which may lead to staff reductions.

Implats CEO Nico Muller said platinum group metal (PGM) pricing has declined sharply since the start of 202, and there have been persistent inflationary pressures on input costs at its mines.

This has resulted in significant pressure on profitability and cash flow across the entire PGM sector, including Implats’ operations. 

“Global macroeconomic uncertainty and rising geopolitical tensions present additional downside risks to industry sustainability,” he said. 

“As a result of these pressures, the group has assessed and revised its business planning parameters and contemplated various measures to optimise operational efficiencies and resources.”

He explained that cost-saving, capital-deferment and voluntary labour-reduction initiatives to date have not sufficiently offset the impact of persistently lower prices. 

“This has significantly undermined Implats’ financial position, which in turn threatens future job security for the entire workforce. Implats management therefore considers it necessary to commence the Section 189(3) process.”

He said Implats is committed to a fair and transparent consultation process, and no final decision has been taken regarding the proposed restructuring.

“During the consultation process, all viable alternatives suggested to job losses will be considered.”

Implats wants to ensure that each of its business units contributes sustainably and profitably through the fluctuations of PGM cycles to ensure the long-term viability of the business and its significant commitments to its key stakeholders.

The proposed restructuring could potentially affect approximately 3,900 positions, equating to a 9% reduction in labour across the group’s Impala Rustenburg, Impala Bafokeng and Marula operations, as well as at the corporate office, which is targeting a 30% reduction in head office costs.