Impala Platinum (IMPJ.J) has announced its intention to implement a voluntary job reduction program for employees situated in the world’s deepest platinum mining shafts within South Africa. This strategic move is aimed at achieving cost reduction objectives, particularly in response to the declining prices of the precious metal.
Having initiated the procedure at its Johannesburg headquarters just last month, the platinum mining company is now in the process of rolling out voluntary exit packages to encompass its expansive Rustenburg mining complex situated in the North West province. This expansion has been officially verified by the company’s spokesperson, Johan Theron.
Theron refrained from disclosing the specific number of jobs that the company anticipates reducing or the exact amount of cost savings the company aims to achieve. He emphasized, “We are diligently implementing cost reduction measures.”
Palladium prices have experienced a substantial decline of nearly 40% this year, with primary metal platinum also witnessing a 14% decrease. The reduced demand, especially for palladium, can be attributed to weakened economic conditions in China.
In a similar vein, Impala’s competitor, Sibanye Stillwater (SSWJ.J), disclosed its intention last month to implement a workforce reduction exceeding 4,000 positions. Additionally, the company plans to shutter certain aging platinum mining shafts where economically viable ore reserves have become depleted. Notably, in October, Anglo American (AAL.L) also revealed that it is contemplating job reductions both within its South African headquarters and on a global scale, as part of its cost-saving initiatives.