South Africa’s platinum sector faces new crisis as 1,114 jobs are put at risk

Tuesday 08 September 2026 - 15:47

By: Azzat Manal

South Africa’s platinum sector faces new crisis as 1,114 jobs are put at risk

South Africa’s platinum industry is facing another setback after Sibanye-Stillwater announced consultations over a proposed restructuring of its Kwezi mine, a move that could put 1,114 jobs at risk.

The potential job losses include 781 positions held by the company’s employees and a further 333 jobs involving workers employed by contractors. The restructuring process is expected to examine measures that could reduce or avoid redundancies while assessing alternative options for the future of the operation.

Sibanye-Stillwater said it had spent several years implementing measures to extend the mine’s operating life, including improving the extraction of available reserves and adjusting mining boundaries. However, the underground platinum-group metals operation, located in the Rustenburg area about 120 kilometers northeast of Johannesburg, has continued to face financial difficulties.

The company said the mine is approaching the end of its economically viable life after recording significant losses in recent years. Kwezi generated a loss of 208 million rand in 2024, followed by another loss of 91 million rand in 2025.

Sibanye-Stillwater attributed the worsening outlook partly to delays affecting a proposed project designed to provide access to additional shallow mineral resources. Objections from stakeholders, legal challenges and delays in obtaining the necessary permits prevented the project from progressing as planned.

The absence of those additional reserves has accelerated the depletion of the mine’s remaining economically recoverable resources, further weakening its financial prospects. Following a detailed operational and financial review, the company said it had concluded that formal consultations over a restructuring had become necessary.

The consultation process will consider measures aimed at minimizing the impact on affected employees and contractors. It will also explore potential alternatives that could help preserve employment where economically and operationally feasible.

Sibanye-Stillwater General Manager Richard Stewart said the depletion of economically recoverable reserves and the resulting deterioration in the mine’s financial outlook had made discussions about its future unavoidable.

The potential restructuring comes at a challenging time for South Africa’s platinum-group metals industry, which remains an important source of employment, exports and mining revenue. The sector has faced pressure from volatile commodity prices, rising operating costs, declining ore grades and difficulties in maintaining the profitability of some mature mining operations.

For workers and surrounding communities, the possible closure or downsizing of a mine can have consequences extending well beyond direct employment, affecting contractors, suppliers and local businesses that depend on mining activity.

The consultation process will therefore be closely watched by employees, unions and other stakeholders as they seek alternatives to large-scale job losses. The final outcome will depend on the discussions and on whether viable options can be found to extend the mine’s economic life.