Job Cuts

Sibanye Initiates Job Cuts of Nearly 300 Roles in US Operations Following Decline in Palladium Prices

Sibanye-Stillwater undergoes strategic restructuring in response to palladium price decline, announcing job cuts in both U.S. and South African operations for cost reduction.

On Wednesday, diversified mining company Sibanye Stillwater (SSWJ.J) announced plans to trim 287 positions at its U.S platinum group metals (PGM) operations. This decision is driven by the need to cut costs in the face of declining metal prices. Despite the workforce reduction, the company assures that production will not be significantly impacted.

The prices of PGMs, which are predominantly used by car manufacturers to control emissions, have experienced a notable decrease over the past year due to concerns about global economic growth. Palladium, in particular, has seen a nearly 40% drop in price this year, largely influenced by weakened demand in China. Additionally, the price of the primary metal platinum has decreased by 14%.

The mining company based in Johannesburg revealed last year that it was making changes to its U.S. operations, which are mainly focused on palladium. This decision was driven by the expectation of a decline in palladium prices and the impact of rising costs due to inflation.

As part of this restructuring, approximately 100 Sibanye-Stillwater employees and 187 contractors are expected to be affected, according to a statement from Sibanye.

Sibanye CEO Neal Froneman stated, “We have taken decisive action to address costs at the U.S PGM operations, to ensure the sustainability of these long-life operations during a challenging period of lower than anticipated PGM prices.”

The changes being made are not anticipated to have a substantial effect on the ongoing mining and recycling activities, as per the company’s statement. However, they are expected to lead to substantially reduced costs and capital.

In the previous month, Sibanye disclosed its intentions to reorganize its South African PGM operations. The focus is on four shafts that are currently operating at a loss, and this move could potentially lead to the elimination of 4,095 jobs.

Sibanye’s competitor, Impala Platinum (IMPJ.J), is also taking steps to reduce costs amidst the downturn in PGM prices. This includes offering voluntary job cuts to workers in South Africa.

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