Sibanye Stillwater ( NYSE: SBSW ) said Tuesday it may cut more than 2,000 jobs at some gold mining operations in South Africa, as it begins consultations with labor groups and other stakeholders on a possible restructuring of its operations in the country.
The potential restructuring could affect employees and contractors at the Beatrix 4 shaft and the Kloof 1 and 2 plants, which the miner has said are not profitable as they are running out of commercially viable ore, and they face rising costs and lower production levels.
Sibanye ( SBSW ) said it is becoming harder to operate the mines profitably due to strikes, higher electricity costs, and challenges of extracting ore at depths of as much as 2.5 miles.
The restructuring at Beatrix and Kloof could result in job losses through natural attrition, voluntary separation and skills transfer, the company said.
Sibanye Stillwater's ( SBSW ) operational problems in South Africa persist, but it has been diversifying into green metals and in safer jurisdictions, Atlas Equity Research writes in an analysis published recently on Seeking Alpha .
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Sibanye Stillwater to consider South Africa job cuts as labor talks begin