Anglo American Platinum (Amplats) said Monday it plans to cut some 3,700 jobs in its operations in South Africa as a result of low prices in the platinum group of metals (PGM) and a reduction in profits.
The global mining company said it had taken active steps to save jobs, but the 71% reduction in profit from 2022, and the low Platinum prices among other factors have made them turn to restructuring.
“The process will involve a period of consultation with stakeholders including trade unions and other affected non-unionized employees,” the world’s largest primary producer of platinum said.
Craig Miller, CEO of Amplats, said: “We fully acknowledge that this process, that will affect approximately 3700 (approximately 17%) of our employees and 620 contractors who are in scope, will have a socio-economic impact on them, their families and communities.”
Miller said the retrenchments are necessary if the company is to continue with operations and employment of thousands of workers and contractors.
The global platinum producer has about 20,000 employees and contractors in its operations in South Africa and Zimbabwe.
South Africa has a high unemployment rate. In the third quarter of 2023, unemployment stood at 31.9%.