Africa Biz Construction and Business News
Impala Platinum Announces Major Restructuring in South Africa, Cutting 13K Jobs
October 22, 2018
Impala Platinum announced on October 18 that it was launching a major restructuring of its platinum mining business.
South Africa-based Impala Platinum, like other mining operations attempting to keep solvent as some of the precious metal markets have decline recently, said it had few options to get around its restructuring. It will be focusing on reducing size and restructuring how it does its work at some of its money-losing operations and divisions.
The goal in the restructuring is both to free up cash and to low operating costs. It specifically is targeting reducing total mining costs from R25,100 per platinum ounce in 2017 to under R22k000 per platinum ounce by FY 2021. At present the company is a net cash-losing business. With the changes planned by the company, the business should be net cash-generating by the end of 2021.
In doing that the company estimates it would likely be eliminating around 9,000 direct and 4,000 contractor jobs during the planned restructuring period.
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