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South African Platinum Mine Cuts 70% of Jobs
6 Jun
Summary
- Nearly 500 workers will be laid off at Wesizwe Platinum's Bakubung mine.
- The mine's strategy is shifting from phased development to a single-stage ramp-up.
- Industry apprehension about expanding production due to electric vehicle threats exists.
Wesizwe Platinum has announced significant workforce reductions, with nearly 500 employees, approximately 70% of its staff, facing layoffs at the Bakubung mine in South Africa. This decision is driven by a strategic pivot from a phased development approach to a single-stage ramp-up for the project.
The Bakubung platinum project, in development for about 15 years, will now target an annual production of 3.5 million tons. The company stated that maintaining the current headcount of 706 employees is not sustainable under the updated business plan. This revised strategy aims to establish and sustain the contemplated production profile.
This move occurs within a challenging environment for new platinum projects. South Africa, a major global supplier, faces industry apprehension regarding production expansion due to the long-term threat posed by electric vehicles, which reduce the need for autocatalyst metals. The Bakubung project has faced numerous delays, including funding issues, COVID-19 disruptions, labor unrest, community protests, and a cyberattack, delaying its entry into production.
