The Minerals Council of South Africa said on Monday that the reorganisation of the country’s platinum group metals (PGM) industry might lead to job losses ranging from 4,000 to 7,000.
The council reported that South African PGM miners are actively considering restructuring strategies for unprofitable production due to falling prices and rising input costs.
The Minerals Council highlighted the sector’s heavy reliance on automakers, who use these metals to reduce emissions in petroleum-powered engines.
As the global shift towards clean energy in transport intensifies, the sector faces significant uncertainty.
South Africa, being the leading PGM producer globally, operates some of the world’s oldest and deepest platinum mines, which are costly to run, particularly when metal prices drop.
Last year, weak demand in China primarily drove a 40 per cent drop in palladium prices and a 15 per cent decrease in platinum prices.
The Minerals Council stated that the majority of PGM miners’ total costs come from electricity and labour expenses.
Sibanye Stillwater, the largest employer in South Africa’s mining sector, has plans for restructuring that may lead to the closure of four unprofitable PGM shafts and the potential loss of 4,095 jobs.
Moreover, Impala Platinum is offering voluntary severance packages to its South African workforce.
Anglo American Platinum, the world’s leading PGM producer in terms of value, is reassessing its cost structure to ensure continued profitability.
