Sibanye Stillwater Ltd. said it might cut more than 2,000 jobs at some gold mining operations in South Africa that are struggling to make a profit. The Johannesburg-based precious metals producer will enter into consultations with labour groups and other stakeholders on the proposed restructuring, which could affect 1,959 employees and 465 contractors at its Beatrix 4 shaft and Kloof 1 plant. The operations aren’t profitable as they are running out of commercially viable ore, and they face rising costs and lower output levels, Sibanye said in a statement. “To allow shafts and operating plants that are no longer sustainable to continue operating at a loss will threaten the remaining life of mine of the other South African gold operations,” said Richard Stewart, Sibanye’s chief regional officer for Southern Africa. Sibanye, the largest employer in South Africa’s mining sector, was hit by a workers’ strike over wages for almost three months earlier this year.
Sibanye Stillwater Ltd. said it might cut more than 2,000 jobs at some gold mining operations in South Africa that are struggling to make a profit. The Johannesburg-based precious metals producer will enter into consultations with labour groups and other stakeholders on the proposed restructuring, which could affect 1,959 employees and 465 contractors at its Beatrix 4 shaft and Kloof 1 plant. The operations aren’t profitable as they are running out of commercially viable ore, and they face rising costs and lower output levels, Sibanye said in a statement. “To allow shafts and operating plants that are no longer sustainable to continue operating at a loss will threaten the remaining life of mine of the other South African gold operations,” said Richard Stewart, Sibanye’s chief regional officer for Southern Africa. Sibanye, the largest employer in South Africa’s mining sector, was hit by a workers’ strike over wages for almost three months earlier this year.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
Sibanye Stillwater Ltd. said it might cut more than 2,000 jobs at some gold mining operations in
South Africa that are struggling to make a profit. The Johannesburg-based precious metals producer
will enter into consultations with labour groups and other stakeholders on the proposed
restructuring, which could affect 1,959 employees and 465 contractors at its Beatrix 4 shaft and
Kloof 1 plant. The operations aren’t profitable as they are running out of commercially viable ore,
and they face rising costs and lower output levels, Sibanye said in a statement. “To allow shafts and
operating plants that are no longer sustainable to continue operating at a loss will threaten the
remaining life of mine of the other South African gold operations,” said Richard Stewart, Sibanye’s
chief regional officer for Southern Africa. Sibanye, the largest employer in South Africa’s mining
sector, was hit by a workers’ strike over wages for almost three months earlier this year. The
company is among producers battling to squeeze profits from some of the world’s deepest and
costliest gold mining shafts. It’s becoming harder to operate the mines profitably due to strikes,
higher electricity costs, and challenges extracting ore at depths of as much as 4 kilometres (2.5
miles), said company spokesman James Wellsted.
Adapted from:
Bloomberg. 2022. Huge job cuts looming for one of South Africa’s biggest employers. [Online]:
https://businesstech.co.za/news/business/639733/huge-job-cuts-looming-for-one-of-southafricas-biggest-employers/ [Accessed 9 November 2022].
With reference to the article above, write an office memo of 400-550 words, discussing the
defensive strategy used by Sibanye Stillwater Ltd.
Instructions:
• Your office memo must have an introduction and conclusion.
• Referencing and paraphrasing are very important
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