Impala Platinum (Implats) has announced plans to reduce the number of workers at a subsidiary in Limpopo that has been operating at a loss.
Spokesperson Bob Gilmour said on Friday that the strategic move would affect about 4 500 employees working at Marula Platinum.
However, the company was still investigating the best way to cut the staff complement and Gilmour added that it was too early to say how many people would be laid off.
The second-largest producer of platinum said that Marula would cut its 2013 target by 26 percent and would continue to produce 70 000 ounces of refined platinum a year for the next two years as opposed to expanding to the planned 95 000 ounces.
Marula, in which Implats owns a 73 percent stake, had become a marginal mine and had difficulties in meeting expansion targets due to logistical constraints as a result of the conversion from mechanised to conventional mining at the Clapham shaft, Gilmour said.
He said that a section 189 process in terms of the Labour Relations Act had been initiated, giving Marula 60 days to engage in a consultative process with key stakeholders with the intention of mitigating the effect on employees.
Impala bought the majority stake in the operation in 2000 for R950 million and would hold on to it rather than sell the company, Gilmour said.
“We need to restore the portfolio first before we can think about expansions.”
National Union of Mineworkers general secretary Frans Baleni said the union was concerned about the job losses at a time when the country was trying to create jobs.
“Instead of job losses, it is our plea really to have the workers absorbed in other Impala operations” he said.
Jeremy Coombes, the general manager of marketing at UK-based metal refiner Johnson Matthey, said the company’s reduction of production was another example of South African platinum producers not meeting expected targets.
Lonmin had lost production since May 17, when employees embarked on an unprotected strike, and subsequently the company fired 9 000 people. However, it is in the process of rehiring employees.
“Over the next few years, the concern is that South African supply will not grow to meet demand,” Coombes said.
Platinum rose $7 to $1 786 (R12 336) an ounce in London on Friday afternoon. Johnson Matthey predicted it to average $1 870 this year, Coombes said.
Implats shares rose 1.8 percent to R186.50 on Friday. - Business Report
