Anglo American Platinum (Amplats) Announces Possible Job Cuts Amid Profit Crash
Amplats, one of the largest platinum producers in South Africa, has announced that it may have to cut more than 4,000 jobs due to a significant decrease in profits. The miner reported a more than 70% drop in profits for the year ending December, with its cash reserves nearly halving.
The company has cited lower metal prices, particularly for platinum group metals (PGMs), and challenges with South African infrastructure such as ports and electricity, as reasons for the profit decline. Amplats has initiated a retrenchment consulting process, which could result in job losses across its operations.
CEO Craig Miller stated, “This review may result in the renegotiation of certain contract terms. The scope involves not renewing contracts upon expiration and terminating other contracts within the contractual provisions.
The impending job losses come as many major South African miners are facing similar challenges, including rising costs and unreliable infrastructure. Several mining companies in the country have begun restructuring exercises, raising concerns about potential mass layoffs.
The Section 189A process, which involves consultations with trade unions facilitated by the CCMA, will determine the final number of job losses at Amplats. The company has pledged to support affected employees and communities, acknowledging the negative socio-economic impact of the job cuts.
Despite taking various actions in 2023 to adjust to lower metal prices, the company has determined that further measures are necessary to ensure the business remains competitive and sustainable. The company is committed to implementing social impact mitigation measures and well-being support programs for employees during this challenging time.
As the mining industry in South Africa continues to face economic challenges, Amplats’ announcement serves as a reminder of the ongoing struggles in the sector. The company’s efforts to navigate the current market conditions while prioritizing the well-being of its employees highlight the complex realities of the mining industry in the country.
