Impala warns of job losses

Impala Platinum Holdings says protests at its Marula mine and low metal prices have led the world’s second-largest producer of the metal to start a reorganisation process that could lead to more than 1 000 job losses.

The mining regulator and relevant labour unions have been contacted and all parties will work together to minimise the impact of the plan on employment, it said on Wednesday. Impala expects the negotiation process to be completed by the end of June, it said.

“This is something the business and economy can ill afford, but remains imperative if we are to protect the financial viability of our business and preserve jobs as far as possible,” chief executive officer Gerhard Potgieter said.

Marula employs almost 4 400 workers and contractors, according to Impala’s website. The company reduced its annual production forecast in February due to protests in the community, which owns a 9% stake.

The protest action that’s led to the reorganisation is related to community dissatisfaction with the way its 50% interest in the Makgomo Chrome project is being managed, Impala said.

Impala said third-quarter refined platinum output dropped to 331 000 ounces from 353 000 ounces a year earlier, while fullyear production guidance was maintained at 1.5 million refined ounces. At Marula, production of platinum in concentrate for the quarter fell 47% to 9 000 ounces.

The stock has gained 2.4% this year. – Bloomberg