https://en.sputniknews.africa/20240205/south-africas-platinum-industry-restructuring-could-cut-up-to-7000-jobs-reports-say-1064935818.html
South Africa’s Platinum Industry Restructuring Could Cut Up to 7,000 Jobs, Reports Say
South Africa’s Platinum Industry Restructuring Could Cut Up to 7,000 Jobs, Reports Say
Sputnik Africa
Last year was tough for the South African mining industry. However, "despite the significant constraints caused by unprecedented electricity load curtailment... 05.02.2024, Sputnik Africa
2024-02-05T12:22+0100
2024-02-05T12:22+0100
2024-02-05T12:34+0100
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The reorganization of the South Africa's platinum group metals (PGM) sector may lead to a reduction in employment of around 4,000 to 7,000 positions, South Africa's Minerals Council said on Monday at the Investing in African Mining Indaba conference, according to British media.The council added that the majority of PGM miners' overall expenses are attributed to electricity and labor costs. These factors and a decrease in pricing and high input expenses induce more frequent discussions over the need for restructuring unprofitable production.Furthermore, the Minerals Council said that the industry, which heavily relies on automakers utilizing these metals to reduce pollution in petroleum-powered engines, is confronted with a significant amount of uncertainty as the global focus shifts towards sustainable energy in transportation.South Africa, a leading global producer of PGM, has some of the oldest and deepest platinum mines worldwide. These mines incur high operational costs, especially when metal prices are low.Last year, the prices of palladium and platinum experienced fell by 40% and 15% respectively. This decrease was mostly attributed to the lackluster demand in China.Earlier, big industry players like Sibanye Stillwater, Impala Platinum and Anglo-American Platinum have also announced plans for restructuring, which could lead to job losses.In the face of the worrying news, the council also spoke about the positive results of the past year. "Despite a tough operating and mixed-price environment in 2023," the mining industry managed to add more than 7,500 jobs, employing 477,000 people, which indicates growth when compared to 2022.Moreover, total wages increased by 7% to around $9.8 billion. These achievements "supported livelihoods in a weak domestic economy characterized by high unemployment," the council said on X.
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South Africa’s Platinum Industry Restructuring Could Cut Up to 7,000 Jobs, Reports Say
12:22 05.02.2024 (Updated: 12:34 05.02.2024) Last year was tough for the South African mining industry. However, "despite the significant constraints caused by unprecedented electricity load curtailment, debilitating rail and port failures and pervasive criminal activities," the sector accommodated almost 500,000 people and delivered higher taxes for the fiscus, SA's Minerals Council said.
The reorganization of the South Africa's platinum group metals (PGM) sector may lead to a reduction in employment of around 4,000 to 7,000 positions, South Africa's Minerals Council said on Monday at the Investing in African
Mining Indaba conference, according to British media.
The council added that the majority of PGM miners' overall expenses are attributed to electricity and labor costs. These factors and a decrease in pricing and high input expenses induce more frequent discussions over the need for restructuring unprofitable production.
"In light of this, various prominent PGM miners are restructuring their operations potentially impacting between 4,000 to 7,000 jobs," the governmental body stated, as cited by British media.
Furthermore, the Minerals Council said that the
industry, which heavily relies on automakers utilizing these metals to reduce pollution in petroleum-powered engines, is confronted with a significant amount of uncertainty as the global focus shifts towards sustainable energy in transportation.
South Africa, a leading global producer of PGM, has some of the oldest and deepest platinum mines worldwide. These mines incur high operational costs, especially when metal prices are low.
Last year, the prices of palladium and platinum experienced fell by 40% and 15% respectively. This decrease was mostly attributed to the lackluster demand in China.
Earlier,
big industry players like Sibanye Stillwater, Impala Platinum and Anglo-American Platinum have also announced plans for restructuring, which could lead to job losses.
In the face of the worrying news, the council also spoke about the positive results of the past year. "Despite a
tough operating and mixed-price environment in 2023,"
the mining industry managed to add more than 7,500 jobs, employing 477,000 people, which indicates growth when compared to 2022.
Moreover,
total wages increased by 7% to around $9.8 billion. These achievements "supported livelihoods in a weak domestic economy characterized by high unemployment," the council
said on X.
