JOHANNESBURG - Mining company Sibanye-Stillwater said on Wednesday it would enter into consultation with stakeholders in terms of section 189 of the Labour Relations Act regarding the restructuring of its Marikana operations which could cut about 5,270 jobs.
In a statement, Sibanye-Stillwater said this was "pursuant to ongoing financial losses experienced at these operations with certain shafts having reached the end of their economic reserve lives".
"The restructuring will result in the rationalisation of overheads and the realisation of other synergies and efficiencies required to restore profitability and ensure the sustainability of the remaining shafts at the Marikana operations," it said.
The company and affected stakeholders would consider measures to avoid and mitigate possible retrenchments and seek alternatives to the potential cessation or downscaling of operations at affected shafts and associated services.
The process followed a detailed three month review of the Marikana operation, following the acquisition of platinum producer Lonmin becoming effective in June.
Sibanye said as a result of an improved platinum group metals commodity price environment, the number of possible job reductions was significantly less than previously communicated by Lonmin in 2017.
"The proposed restructuring is contemplated to ensure the sustainability of the Marikana operation, which is not a going concern as an independent entity," Sibanye-Stillwater CEO Neal Froneman said.
He said overall, the outcome of the restructuring would be a more sustainable business able to secure employment for the majority of the Marikana workforce for a much longer period.