Zimbabwe’s leading platinum producer, Zimplats, revealed plans for voluntary job cuts on Wednesday as it grapples with the repercussions of a significant downturn in platinum group metal (PGM) prices.
The company, a subsidiary of Impala Platinum, is facing mounting pressure amid a challenging economic landscape, highlighted by a rare $8.8 million loss recorded in the six months to December 2023, a stark contrast to the $159.6 million profit previously reported.
In response to declining metal prices, Zimplats stated that it is “critically reviewing its business,” acknowledging the necessity for labor optimization measures to safeguard the company’s future. However, specific details regarding the number of jobs targeted for reduction among its 8,000 permanent and contract workforce were not disclosed.
The plight of Southern African PGM miners, including industry giants like Impala, Sibanye Stillwater, and Anglo American Platinum, underscores the broader challenges facing the sector. Plunging metal prices, exacerbated by weak auto production and global economic uncertainties, have prompted widespread cost-cutting measures and job losses across the industry.
In tandem with Zimplats’ initiatives, other PGM mines in Zimbabwe, such as Anglo American Platinum’s Unki mine and the Mimosa joint venture between Impala and Sibanye Stillwater, are also implementing workforce reductions.
Moreover, Mimosa has halted its ambitious $100 million North Hill expansion project, while Impala has deferred long-term schemes, including sulphur abatement and renewable energy initiatives, as part of its cost-saving efforts.
The impact of low metal prices is further evident with Tharisa Plc’s decision to delay the commissioning of its $361 million Karo platinum mine in Zimbabwe by a year, originally slated for June 2024.
The challenging economic climate underscores the imperative for strategic adjustments within the PGM sector, with companies navigating uncertainties and recalibrating operations to mitigate the adverse effects of prolonged market downturns.
*This report adheres to News24’s editorial standards and guidelines.*