KEY POINTS
- Wesizwe Platinum’s restructuring has affected 429 jobs at Bakubung.
- A total of 399 workers accepted voluntary separation packages, while 30 were retrenched.
- The company is shifting to a single-stage ramp-up targeting 3.5 million tonnes annually.
South African platinum group metals producer
Wesizwe Platinum has confirmed that 429 jobs have been affected by its operational restructuring at the Bakubung platinum mine, as the company shifts to a revised production and development strategy.
The restructuring, which involves voluntary employee departures and retrenchments, follows a decision by the mining company to abandon its previous phased production ramp-up plan in favour of a single-stage approach designed to increase output to 3.5 million tonnes a year.
Wesizwe Platinum said 429 employees had been affected by the restructuring process after consultations with workers and labour unions.
Of the affected employees, 399 opted for voluntary separation packages, which were subsequently approved by the company. The remaining 30 employees were retrenched as part of the operational changes.
The job reductions followed a Section 189A consultation process initiated in June, during which Wesizwe engaged employees and labour representatives over the potential impact of the restructuring on its workforce.
When the process was first announced, the company warned that nearly 500 employees across different departments, professional categories and levels of the business could be affected.
Wesizwe, which employs 706 people, has therefore proceeded with a significant workforce reduction as it seeks to align its staffing requirements with its revised operational plans.
Company abandons phased production ramp-up
The restructuring follows Wesizwe’s announcement in March that it had decided to discontinue its previously adopted phased production ramp-up strategy at the Bakubung mine.
Under its earlier development plan, the company intended to gradually increase production, including through a strategy targeting an initial capacity of one million tonnes a year.
However, Wesizwe has since opted for a revised development approach centred on a single-stage ramp-up to a production capacity of 3.5 million tonnes annually.
The change represents a shift in the company’s approach to developing the Bakubung operation, with the revised strategy intended to establish a larger-scale mining operation rather than relying on incremental production increases.
The decision to change the development plan prompted the company to reassess its operational requirements, including staffing levels, resulting in the restructuring process and the subsequent job losses.
The Section 189A process provided a framework for Wesizwe to consult with employees and labour unions on the proposed workforce reductions and explore possible alternatives to compulsory retrenchments.
Following the consultations, the majority of affected employees accepted voluntary separation packages, helping the company reduce the number of compulsory job cuts to 30.
Although the restructuring has affected more than half of the mine’s previously reported workforce, Wesizwe has not disclosed further details in the announcement about the financial savings expected from the job reductions or the timeline for implementing its revised production strategy.
