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South Africa’s Sibanye-Stillwater could cut almost 6,000 jobs in gold restructuring

South Africa’s Sibanye-Stillwater said on Thursday it could cut nearly 6,000 jobs as it considers restructuring its struggling gold mining operations.

Gold producers in Africa’s most industrialised economy, which have some of the world’s deepest mines, have seen profits squeezed by rising costs, labour unrest and declining grades.

The precious metal miner said it had entered into consultation with stakeholders on restructuring its gold operations following financial losses at the Beatrix 1 and Driefontein 2,6,7,8 shafts during 2018, which could affect around 5,870 employees and 800 contractors.

The firm, which has both gold and platinum mines in South Africa, employs over 61,000 people in its local operations.

“Our best attempts to address the ongoing losses at these operations have however been unsuccessful and sustaining these losses may threaten the viability of our other operations,” said Sibanye-Stillwater Chief Executive Neal Froneman in a statement.

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Sibanye flagged last month that its 2018 bullion production would miss guidance and come in at 1.1 million ounces, despite plans being implemented to curb losses after workers downed tools in mid-November.