Electricity and labour costs account for most of PGM miners' total costs, the Minerals Council said.
“In light of this, prominent PGM miners are restructuring their operations, potentially affecting 4,000 to 7,000 jobs.”
Sibanye-Stillwater, the biggest mining sector employer, has said its planned restructuring, which could see it close four loss-making PGM shafts, could potentially result in the loss of 4,095 jobs.
Impala Platinum has said it was offering voluntary job cuts to workers at its South African operations.
Anglo American Platinum, the world's biggest PGM producer by value, said it is reviewing its cost structure to remain profitable.
Platinum restructuring could cut 4,000-7,000 jobs
Image: Sibanye website
The Minerals Council said on Monday the restructuring of the platinum group metals (PGM) industry could result in between 4,000 and 7,000 job cuts.
PGM miners are increasingly discussing the need to restructure unprofitable production after a decline in prices and high input costs, the council said at the start of the Investing in African Mining Indaba conference in Cape Town.
The council said the sector, largely dependent on automakers who use the metals to curb emissions in petroleum-powered engines, faces “a great deal of uncertainty” as the world pivots towards clean energy in transportation.
South Africa is a top global PGM producer and has some of the world's oldest and deepest platinum mines which are expensive to operate.
The prices of palladium and platinum fell by 40% and 15% last year, respectively, mainly due to weak demand in China.
Electricity and labour costs account for most of PGM miners' total costs, the Minerals Council said.
“In light of this, prominent PGM miners are restructuring their operations, potentially affecting 4,000 to 7,000 jobs.”
Sibanye-Stillwater, the biggest mining sector employer, has said its planned restructuring, which could see it close four loss-making PGM shafts, could potentially result in the loss of 4,095 jobs.
Impala Platinum has said it was offering voluntary job cuts to workers at its South African operations.
Anglo American Platinum, the world's biggest PGM producer by value, said it is reviewing its cost structure to remain profitable.
READ MORE:
Impala Platinum sees 20% decline in half-year profit on lower metal prices
Mining challenges raise likelihood of mergers and acquisitions
Anglo American plans $1.8bn spending cuts by 2026
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