Anglo American Platinum (Amplats), the world’s largest primary producer of platinum, announced on Monday a restructuring plan that could result in the loss of approximately 3,700 jobs in its South African operations. This drastic move comes as the company grapples with a 71% decline in profit compared to 2022, largely attributed to the recent slump in platinum group metals (PGMs) prices.
Amplats CEO, Craig Miller, acknowledged the significant impact these job cuts will have on employees, stating, “We fully acknowledge that this process, affecting approximately 17% of our workforce and 620 contractors, will have a socio-economic impact on them, their families, and communities.” However, Miller emphasized the necessity of the restructuring, explaining, “These actions are necessary to ensure the continued employment of thousands of other workers and contractors.”
The company has engaged in active cost-saving measures but ultimately deemed them insufficient to address the financial challenges posed by the current market conditions. This decision will undoubtedly exacerbate South Africa’s already concerning unemployment rate, which stood at 31.9% in the third quarter of 2023. Amplats intends to consult with stakeholders, including trade unions and affected employees, throughout the restructuring process.
The ramifications of Amplats’ decision extend beyond immediate job losses. This move serves as a stark reminder of the vulnerability of South Africa’s mining sector to volatile commodity prices and its impact on the nation’s already strained economy and workforce.
