Bakubung Platinum Mine has begun a formal retrenchment process that could affect close to 500 employees across the business.
Owned by Wesizwe Platinum, which is majority controlled by Chinese investors, Bakubung is a major underground platinum group metals (PGM) mine in the North West platinum belt. The operation, located close to entertainment mecca Sun City, is focused on extracting high-value ore from the Merensky and Upper Group 2 (UG2) reefs.
The mine said the Section 189 process will address a proposed restructuring of its operations and affect around 497 positions across different staff levels and disciplines.
Overstaffing challenge
Bakubung, which currently employs 706 people, revealed that the company’s new strategy requires fewer employees to achieve and maintain the targeted production levels, highlighting that maintaining the headcount is no longer sustainable.
According to the mine, the decision to start the consultation process comes as the board abandoned its production plan of one million tonnes per annum with immediate effect. The mine will adopt a revised strategy aimed at ramping up production in a single phase to 3.5 million tonnes per annum.
“As part of its ongoing efforts to enhance operational efficiency, Bakubung has determined that a restructuring of its workforce is necessary to ensure the effective and sustainable operation of its business and to achieve a meaningful reduction in operating expenditure,” the company said.
Operations on halt
The mine has, as of Wednesday, temporarily halted operations to allow for a consultation process but assured that the mine will remain in a safe and secure condition during this time, with environmental and operational standards maintained.
The consultation process will be overseen by the Commission for Conciliation, Mediation and Arbitration. During this period, the company and employee representatives will explore possible ways to avoid or reduce the number of retrenchments.
“Bakubung remains committed to engaging constructively with all relevant stakeholders in order to mitigate the impact on the remainder of its operations and its employees,” the company said.
- Bakubung Platinum Mine, owned by Wesizwe Platinum with majority Chinese investors, has started a formal retrenchment process affecting about 497 of its 706 employees due to a restructuring plan.
- The mine's board abandoned its previous production target of 1 million tonnes per annum and is now aiming to ramp up to 3.5 million tonnes per annum in a single phase.
- The retrenchment is part of a strategy to enhance operational efficiency, reduce operating costs, and maintain sustainable production levels with a smaller workforce.
- Operations have been temporarily halted to allow consultations overseen by the CCMA, aimed at finding ways to minimize job losses.
- Bakubung commits to maintaining safety, environmental, and operational standards during the consultation period while engaging constructively with stakeholders to mitigate impacts.
Owned by Wesizwe Platinum, which is majority controlled by Chinese investors,
“As part of its ongoing efforts to enhance operational efficiency,
“
