Impala Platinum (IMPJ.J) is considering the closure of some of its loss-making South African mining operations if metal prices continue to decline and restructuring efforts fail to enhance margins, CEO Nico Muller revealed.
The Johannesburg-based producer of platinum group metals (PGMs) has implemented cost-saving measures, including scrapping an interim dividend and postponing spending on projects, to mitigate the impact of a significant profit slump.
Despite natural attrition reducing the workforce by 3% since June last year, further job reductions may be considered if metal prices fail to recover, according to Muller.
Decisions regarding the potential mothballing of loss-making operations could materialize within the next six months, with options including placing mines on care and maintenance or suspending operations entirely.
Source: Reuters