Sibanye-Stillwater will cut 287 jobs at its U.S platinum group metals (PGM) operations to reduce costs as metal prices decline, reported Reuters.
The Johannesburg-based miner announced last year the restructuring of its palladium-dominated U.S operations in anticipation of a fall in palladium prices and because of the impact of inflation on costs. This year the price of palladium has plunged nearly 40% so far, noted the news agency.
The restructuring is expected to affect approximately 100 employees and 187 contractors, Sibanye-Stillwater said in a statement. “We have taken decisive action to address costs at the U.S. PGM operations, to ensure the sustainability of these long-life operations during a challenging period of lower than anticipated PGM prices,” said CEO Neal Froneman.
The restructuring is not expected to significantly impact current mine production or recycling operations, but will result in significantly lower costs and capital, the company said.
Sibanye-Stillwater owns two PGM operations in the U.S. – Stillwater and East Boulder. Both operations are located in Montana and produce primarily palladium and platinum. The miner also owns and operates the Columbus Metallurgical Complex, situated in Columbus, Mont.