Platinum mining company Mimosa has embarked on a staff rationalization process, affecting 33 management and supervisory employees, Newsday reports.
The company said that this measure aims to ensure business continuity in light of the decline in metal prices.
Metal prices have been witnessing a downward trend since April 2023 and remain low so far.
The price of the metal decreased by up to 35% during this period, which had a negative impact on cash flow and profitability.
“Expectations are that prices will remain low in the medium term. In light of this, we have had to implement several measures to ensure that our business remains viable in the low-priced metals environment,” Mimosa said in a media update yesterday.
“These measures include capital expenditure reduction, cost reductions and cash conservation initiatives. It was also necessary to review our staffing structures to improve them taking into account the prevailing environment. This has led to a staff rationalization process which has affected 33 management and supervisory employees.
The platinum miner said a voluntary separation package was offered to 24 of the furloughed employees, while nine opted for early retirement. She added that there are no plans to rationalize the number of permanent employees at this stage.
“People remain the most important part of our business, as they define who we are and are the main source of our success,” Mimosa said.
The mining company said it involved its employees in all operations “that we have implemented in order to maintain morale and continue to achieve all of our production goals.” Newsday
