The South Africa-based mining firm stated that the restructuring at its Impala Rustenburg (Impala) operation is aimed at sustaining the operations of the mine.
Currently, the platinum mine employs about 31,000 people across 13 shaft mining complex and concentrating and smelting plants.
Implats said that it may not stop with the 2,500 number of layoffs, but could go further in its business optimization processes in order to facilitate continued sustainability of the mine.
The South African platinum miner has confessed that it is reeling under severe financial pressures at its Impala operations. It has cited persistently low metal prices and continued rise in production costs as the reasons for its lay off decision.
Implats CEO Nico Muller said: “The financial sustainability of Impala has deteriorated significantly over recent years.
“We have implemented ongoing cost saving and optimisation initiatives in an attempt to restore profitability and secure continued employment as far as possible.
“Unfortunately, we are now left with no further option in the prevailing operating environment, but to consider further restructuring processes that may lead to a reduction in the number of employees.”
Implats stated that there has been a decline in labour productivity rates in the last few years.
It also revealed that production levels at the Impala Rustenburg mine have drastically come down from nearly 1,000,000 platinum ounces per annum to the 680,000-720,000 ounces forecast for the next financial year.
Implats is yet to take a final decision on its proposed restructuring and will wait until it completes a full and proper consultation with impacted employees, and their representatives, in accordance with the Labour Relations Act, 66 of 1995 (LRA).
