As the global economy continues to face challenges, Zimplats, Zimbabwe’s largest platinum producer, has taken strategic measures to limit job losses in the country.
The company announced plans to reduce its headcount by 1%, equivalent to approximately 80 jobs, in an effort to control costs amidst a sharp decline in platinum group metal prices.
The decision to implement voluntary job cuts comes as a response to declining revenues and the need to streamline operations in order to maintain sustainability in the face of economic uncertainties.
This move aligns with the broader cost-cutting initiatives undertaken by other Southern African PGM miners in response to the challenging market conditions.
CEO Alex Mhembere emphasized that while job cuts are necessary to navigate the current headwinds, they are not the sole solution to sustaining the business.
Zimplats aims to maintain its annual production levels of around 600,000 PGM ounces by focusing on improving productivity and operational efficiency.
In a recent statement, Zimplats revealed their plans to reduce spending as part of their 10-year, $1.8 billion expansion project announced in 2021.
The company’s focus in the upcoming financial year, starting in July, will be on replacement capital expenditure, stay-in-business capex, and minimal growth capex.
Projects such as sulphur abatement and the completion of a solar power plant have been postponed.
Despite the recent introduction of Zimbabwe’s new gold-backed currency to replace the inflation-ravaged Zimbabwe dollar, Zimplats reassured that their business operates in United States dollars and therefore will not be affected by the local currency.
This strategic shift towards being more “capital light” reflects Zimplats’ commitment to adapt and streamline operations in response to changing economic conditions and market dynamics.
In a statement at a PGM mining conference in Johannesburg, Mhembere underscored the importance of a strategic workforce plan that balances the need for cost containment with the company’s commitment to retaining skilled employees.
Discover more from Who Owns Africa
Subscribe to get the latest posts sent to your email.
You must be logged in to post a comment.