Implats: Rustenburg job cuts going ahead | Fin24
  • Covid-19 Money Hub

    The hub will help answer your business and money questions during the coronavirus crisis.

  • Cigarette Ban

    British American Tobacco says the ban harms the 'emotional well-being' of smokers.

  • Rand Rigging

    The Competition Commission has revived its case against banks accused of currency manipulation.


Implats: Rustenburg job cuts going ahead

Oct 31 2018 11:50
Sibongile Khumalo

Impala Platinum [JSE:IMP] says its restructuring process - which would see 1 500 job cuts at its Rustenburg operation - is going ahead, including the disposal of its loss-making 1 Shaft.

This year, the world’s second largest platinum producer announced plans to close five of its 11 mines near Rustenburg and cut up to 13 000 jobs over the next few years.

On Wednesday, the company said in a statement the restructuring process for 1 500 employees was "progressing according to plan" and that it was engaged with parties interested in potentially acquiring the 1 Shaft operation.

"This includes consideration being given to alternative commercial outcomes which, as communicated to the market, could include the sale of identified shafts and or full-contract mining provisions."

The Impala Rustenburg’s 1 Shaft is scheduled to be put on care and maintenance in April 2019.

In September, Implats reported a R10.8bn loss for the year ended June, up from R8.1bn seen in the previous comparable period. 

The company said it recorded its highest first-quarter mill tonnage for the past six years: 3.15 million tonnes during the production period between July 1 and September 30.

"Tonnes milled at Impala Rustenburg increased by 5.6% compared to the previous corresponding quarter, reflecting the positive outcomes of various initiatives implemented at the operation to improve safety, production and cost performance," said Implats CEO Nico Muller.

"We remain steadfast in our resolve to eliminate high-cost production at this business, aligned with our lower future metal prices outlook," he added.

Gross tonnes milled, including production from joint venture operations, increased by 1.9% to 6.87 million tonnes, compared to 6.74 million tonnes achieved in the prior comparable period. 

The increase was driven by stronger operational performance at Impala Rustenburg, the company said.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

implats  |  platinum


Company Snapshot

Voting Booth

How has Covid-19 impacted your financial position?

Previous results · Suggest a vote