Amplats could cuts thousands of jobs
Amplats’ headline earnings slumped 71% to R14 billion in its year to end-December, while its net cash pile fell 45% to R15.4 billion. Photo Reuters

Amplats could cuts thousands of jobs

Sikonathi



Mantshantsha



Anglo American Platinum (Amplats) has initiated a process that could result in more than 4 000 job losses across its operations as it is firmly in the grip of biting platinum group metals prices.



Yesterday, Amplats said the Section 189 process will run over the next few months before it could be sure of the exact number. This is in addition jobs already lost at its head office late last year, which reduced head office roles by 30%.



About 3 700 direct Amplats employees are likely to be affected, with another 600 contracted companies whose supply agreements will be reviewed. Amplats could not say how many people are employed by these companies, and what the exact numbers will be once the reviews are completed.



“This review may result in the renegotiation of certain contract terms and scope, not renewing contracts when they expire and terminating other contracts within the contractual provisions,” said Amplats CEO Craig Miller.



Amplats has about 20 000 employees, including contractors, in its South African and Zimbabwe operations, which are also affected by the possible job losses.



Commodity prices



Major South African miners last year initiated restructuring exercises with concerns that thousands of jobs will be lost as miners attempt to respond to depressed commodity prices and a deteriorating domestic business environment.



Along with the tough economy, many are grappling with rising electricity costs, unreliable supply and poor railway operations.



Amplats also announced yesterday that headline earnings slumped 71% to R14 billion in its year to end-December, while its net cash pile fell 45% to R15.4 billion.



Along with a 35% fall in the price of its basket of metals in US dollar terms, it also reported a 1% fall in refined production to about 3.8 million ounces.



The Conciliation, Mediation and Arbitration (CCMA) will facilitate the Section 189A process between the company and the trade unions.



“Only when the consultation process is concluded will the final number of impacted jobs be known,” said Miller.



Repositioning



The imminent job losses come despite the company responding “rapidly throughout 2023” to reposition it to cope with the lower platinum group metals prices that declined by between 14% and 60% last year.



“It is clear to us, however, that the extensive range of actions we have already taken do not go far enough,” said Miller.



The group said after working through all the options, “it is apparent that further measures to create critical resilience and greater competitiveness are needed to sustain the business.”



Amplats acknowledged the process would negatively affect employees and “understand the socio-economic impact this will have on our employees, their families and communities.”



The company said this action is necessary “to enable the continued employment of thousands of workers and contractors... As we progress the implementation of the Section 189A process, we will put in place the appropriate well-being support programme to help our people through this difficult process as well as initiate comprehensive social impact mitigation measures”. – Fin24



Advertisments

Currency: GBP to NAD 23.77 | EUR to NAD 20.52 | CNY to NAD 2.65 | USD to NAD 19.23 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.34 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.73 | ZWL to NAD 0.04 | BRL to NAD 3.7 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.4 | USD to AOA 832.83 | USD to BWP 13.88 | USD to EGP 48.03 | USD to KES 133.98 | USD to NGN 1230 | USD to ZAR 19.23 | USD to ZMW 25.8 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 73551.13 Up +0.26% | Namibian Stock Exchange (NSX) Overall Index 1526.82 Down -0.34% | Casablanca Stock Exchange (CSE) MASI 13302.28 Down -1.12% | Egyptian Exchange (EGX) 30 Index 28144.22 Down -1.67% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 302.12/OZ DOWN -0.0136 | Copper US$ 4.39/lb DOWN -0.0158 | Zinc US$ 2 783.30/T DOWN -1.79% | Brent Crude Oil US$ 86.54/BBP DOWN -0.0073 | Platinum US$ 905.97/OZ DOWN -0.0162 |