JOHANNESBURG (Reuters) – South African miner Sibanye-Stillwater (SGLJ.J) said on Wednesday it planned to cut around 5,270 jobs, or about 6% of its workforce, as it restructures its loss-making Marikana operations that it acquired this year.
Sibanye said the restructuring was aimed at returning the mine to profit and protecting its remaining shafts, driving its share price up 6% to 21.28 rand.
Sibanye took over the mine as part of a deal to buy out struggling platinum miner Lonmin. It first proposed buying Lonmin in 2017, in a deal touted as the only way to save its 29,000-strong workforce. Lonmin had previously planned to close shafts and cut around 12,600 jobs.
After a review, the company has decided to keep operating some shafts that were at risk of closure, and an improvement in platinum metals group prices means the job losses are smaller than those Lonmin foresaw, Sibanye said.
“Overall, the outcome will be a more sustainable business which is able to secure employment for the majority of the Marikana workforce for a much longer period,” Sibanye CEO Neal Froneman said in a statement.
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