Nearly 2Â 000 mine workers will lose their jobs following a decision by Aquarius Platinum to suspend operations for a minimum of six months at its Everest mine.
This was as a result of ground instability that had occurred over an upper area of the mine, the company said on Monday.
The group added that the instability is a result of subsidence across the upper decline area and a contributing factor may have been the exceptionally high rainfall preceding the event, with a third of typical annual rainfall, occurring in one day on November 23.
”Following a comprehensive assessment of the options available to mine management, and primarily focusing on the future safety of the mine and its personnel, the decision has been made to suspend operations for a minimum of six months,” Aquarius Platinum said.
”This is considered a prudent time frame that will permit assessment of the best way forward for the long term.”
According to Stuart Murray, CEO of Aquarius Platinum, the decision to suspend operations was regrettable.
”However it is the right one because it will allow us the time we need to ensure that Everest is brought back into production in the safest manner for the long term, rather than rushing into a short-term, high-risk decline rehabilitation project.
”The suspension of operations also places the least strain on the South African business as a whole at a time of low platinum group metals prices,” he said.
The group said that one possibility includes two alternate decline positions that could be developed from the previous open-cast areas, each offering a technically acceptable access route.
”It should therefore be emphasised that the subsidence event does not jeopardise the sustainability of Everest on a long-term basis,” it added.
”However, regrettably this decision means that the majority of the workforce [about 1Â 950 people] will be retrenched.”
The process of consultation with the workforce and the unions had already commenced.
”Some limited opportunities exist for the redeployment of personnel to other Aquarius Platinum operations and a small team will be maintained at Everest,” the company said.
Existing consumables and stores stocks at Everest will be used at Kroondal and Marikana.
Meanwhile it was recently reported by Business Day that one-third of South Africa’s top 120 companies are likely to retrench staff in the next six months.
The worst-affected sectors would be construction, mining, industrials, financial services, forestry, paper and pulp, vehicles and logistics, the newspaper said, citing a snap survey carried out by business advisory services firm KPMG.
The survey also found that about 65% of companies were likely to offer staff voluntary packages instead of forcing them out of work.
About 90% of companies across all sectors had steeply cut costs, but KPMG said this didn’t relate to subprime woes, but rather to local economic factors such as high interest rates, inflation and the volatile exchange rate. — Sapa, I-Net Bridge