South Africa’s platinum output back to pre-covid levels on job cuts

South Africa’s platinum supply has returned to pre-covid-19 levels, driven by widespread job cuts and operational recalibrations in the face of falling prices, according to data from The World Platinum Investment Council (WPIC).The industry body, funded by South African platinum miners Anglo American (LON: AAL), Northam Platinum, Sedibelo Platinum Mines, Impala Platinum Holdings (JSE: IMP), and Tharisa (JSE: THA) – estimates the global industry has shed around 10,000 jobs this year alone.Sibanye-Stillwater to cut 2,600 jobs in South AfricaThe WPIC’s latest report highlights the significant impact of declining platinum group metals (PGMs) prices on the sector, especially in South Africa, which accounts for about 70% of global output.The plunge in PGMs prices has been a key driver behind the current challenges in the sector. Platinum, used in automotive catalytic converters, jewellery, and various industrial applications, has seen demand volatility due to shifts in global markets and the transition toward greener technologies.The pressure of weak prices on margins has forced companies to slash their workforce in order to remain viable. According to the WPIC, the sector is now operating at levels last seen before the pandemic, which caused major disruptions and uncertainty across global commodity markets.Long-term production concernsWhile job cuts have provided short-term relief for mining companies, the WPIC is concerned about the long-term consequences. Reducing the workforce could erode South Africa’s production capacity, leading to a potential shortfall in global supply over time, it said. Production in South Africa this year is expected to fall 2% year-on-year to around 3.9 million ounces.“The current strategy may risk long-term production erosion,” the Council said, emphasizing the need for a careful balance between cost-cutting and maintaining sustainable output levels.The WPIC warns that without careful management, the sector could face a deeper supply crisis in the future, which could destabilize not only South Africa’s mining sector but also global platinum markets.  With declines in Russian output, global production this year is seen falling 2% to 5.5 million ounces, a four-year low, the Council said.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com