Sibanye, Led By Neal Froneman, Plans To Shut Loss-making Assets

Sibanye-Stillwater may close unprofitable South African PGM operations if commodity prices remain low amid rising costs in 2024.

Over 10,000 jobs lost in South Africas mining sector, with Sibanye cutting 2,600 roles as PGM prices stay near multi-year lows.

Sibanye invests in battery metals and explores new industrial uses for PGMs as demand for autocatalysts cools.

South African mining giant Sibanye-Stillwater, led by outgoing CEO Neal Froneman, is sounding the alarm over potential shaft closures and more job losses as platinum group metal PGM prices remain stuck near multi-year lows.

In its annual report, the company warned that its South African PGM operationsalready trimmed by cost-cutting measuresmay no longer be viable if prices dont recover soon. Rising costs and a low basket price mean that the mines at the top of the cost curve are loss-making, the company said. If the basket price does not improve this year, it may become necessary to close out some unprofitable areas.

The downturn in the PGM market is being felt across South Africa, the worlds top platinum producer. Over the past year, the countrys mining sector has shed more than 10,000 jobs , with Sibanye alone cutting 2,600 roles at its local operations . Anglo American Platinum has laid off 3,700 workers , while Impala Platinum let go of 4,000.

Sibanye expects a modest drop in South African PGM production in 2024 but says it is adjusting its operations to stay aligned with where the industry is heading. Part of that strategy includes investing in battery metals and exploring new industrial applications for PGMs, as demand from traditional useslike autocatalystsstarts to slow.

While global electric vehicle sales have cooled recently, growing demand for hybrid vehicles is helping to keep the autocatalyst market afloat. Even so, Sibanye expects recycling volumes for these materials to remain under pressure due to high interest rates, steep vehicle prices, and stubborn inflation.