Miner Zimplats to offer voluntary job cuts after platinum price rout
TLDR
- Zimplats announces voluntary job cuts in response to plummeting platinum group metal prices
- Company emphasizes urgent action needed to safeguard business amidst rare loss
- Labor optimization initiatives crucial for preserving majority of jobs within Impala Platinum's Zimbabwe unit
Zimplats, has announced voluntary job cuts as part of efforts to mitigate the impact of plummeting platinum group metal (PGM) prices. The company did not specify the number of positions targeted for reduction among its 8,000 permanent and contract jobs.
Facing a rare loss of $8.8 million in the six months ending December 2023, compared to a profit of $159.6 million previously, Zimplats emphasized the need for urgent action to safeguard the business amidst declining metal prices.
In a statement, the Impala Platinum's Zimbabwe unit expressed regret over the necessity for labor optimization initiatives but underscored their importance in securing the company's future and preserving the majority of jobs within the organization.
Key Takeaways
Southern African platinum group metal (PGM) miners, including Impala (Zimplats' parent company), Sibanye Stillwater, and Anglo American Platinum, have been compelled to implement cost-cutting measures and reduce thousands of jobs. This move comes as profits have declined significantly due to plummeting metal prices over the past year, driven by weak auto production and concerns regarding a global economic slowdown. In addition to Zimplats, Zimbabwe's other PGM mines, such as Unki mine (owned by Anglo American Platinum) and Mimosa (a joint venture between Impala and Sibanye Stillwater), are also facing the need for job cuts amid the challenging economic environment.
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