Wesizwe Platinum says Bakubung Platinum Mine’s temporary shutdown is intended to allow for meaningful engagement during retrenchment talks.
The North West-based Bakubung Platinum Mine has temporarily shut down for three weeks amid retrenchment talks affecting 497 miners.
Parent company Wesizwe Platinum told shareholders that the retrenchments are the result of a decision by the business to restructure the mine’s operations.
“The initiation of the section 189A consultation process follows a decision by the board of directors to discontinue the company’s 1 Mtpa production strategy with immediate effect. In its place, the company will pursue a revised development strategy based on a single-stage ramp-up to a 3.5 Mtpa operation,” read the note to shareholders.
Retrenchments are necessary
The company said the strategy will reduce the number of workers required to establish and sustain the production profile contemplated in the updated business plan.
“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,” said Wesizwe Platinum.
“The proposed restructuring is expected to affect approximately 497 employees across various staff levels and disciplines throughout the business.”
Talks with miners, stakeholders
The note further stated that the formal section 189A consultation process will be facilitated under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA), and that, through this process, the company and affected parties will consider alternatives to avoid or mitigate retrenchments.
However, Wesizwe Platinum said Bakubung’s preliminary assessment is that viable alternatives to workforce reduction are limited.
“Maintaining the current headcount of 706 employees would not constitute a reasonable or sustainable course of action, as it would fail to address the company’s operational challenges and it’s imperative to implement efficiency measures and restore a trajectory of profitability and growth,” said the company.
Three-week shutdown
Wesizwe Platinum added that Bakubung will implement a temporary operational shutdown for three days from the close of business on Wednesday, to allow meaningful engagement during the retrenchment talks.
“Shareholders are further advised that to facilitate meaningful engagement during the consultation process and create an environment that allows all parties to focus on the matters under consultation, Bakubung will implement a temporary operational shutdown for a period of three weeks from 6pm on 3 June 2026, while maintaining the mine in a safe, secure, environmentally compliant and operationally ready condition.
“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.”