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Oct 25 (Reuters) - Sibanye Stillwater's (SSWJ.J) planned restructuring, which could see it close four loss-making platinum group metal (PGM) shafts in South Africa, could potentially result in the loss of 4,095 jobs, the mining firm said on Wednesday.
High operating costs and declining PGM prices have significantly affected the profitability of the PGM industry, Sibanye, South Africa's biggest mining sector employer, said in a statement.
The affected workers include 3,500 permanent employees and 595 contractors.
"Certain operating shafts are now loss-making and pose a risk to the sustainability of the remaining operations," Sibanye said.
The company, which also has gold mining operations in South Africa as well as PGM assets in Zimbabwe and the United States, said it had initiated consultations with representatives of affected employees in line with South Africa's labour laws.
Sibanye said two of the shafts are mature, with one having ceased production in late 2022 and the other is at the end of its operating life, due to the depletion of available economic ore reserves. The other two shafts would be restructured to achieve viability.
Last month, Sibanye Stillwater CEO Neal Froneman told Reuters that job cuts had become inevitable in the platinum mining sector due to the decline in the prices of the precious metals.
Reporting by Nelson Banya; editing by Jason Neely and Sharon Singleton
