Sibanye Gold Ltd. expects to ax about 5,270 jobs as part of a restructuring aimed at ensuring the sustainability of the Marikana platinum group metals operations in South Africa.
CEO Neal Froneman said the operation is "not a going concern as an independent entity."
The company said Sept. 25 that it will initially place certain unprofitable shafts on care and maintenance, noting that the shafts have reached the end of their economic reserve lives. The planned restructuring follows a three-month review.
Sibanye acquired the mine as part of its acquisition of Lonmin PLC, which became effective in June. It noted that the cuts were "significantly less" than those previously outlined by Lonmin, which aimed to retain about 2,700 workers, thanks to an improved pricing environment for PGM.
The process will include optimizing and closing certain downstream concentrators, smelters and refineries along with rightsizing related support services and overhead structures associated with the loss-making shafts.
A six-month moratorium on forced retrenchments imposed by the Competition Commission Appeal Court will lapse Dec. 7, according to the company.
In June, Sibanye said about 3,450 jobs will be affected by a proposed restructuring of loss-making operations at some shafts at its Beatrix and Driefontein Consolidated gold mines in South Africa.
