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Impala Platinum Holdings’ Zimbabwean unit, Zimplats, is taking proactive steps to mitigate the impact of anaemic metal prices. The company has initiated voluntary job cuts among its employees as a cost-cutting measure.
Zimplats is offering its employees a minimum of three months’ pay in redundancy packages. Employees have until March 22 to submit their applications for voluntary redundancy.
As Zimbabwe’s largest producer of platinum group metals (PGMs), Zimplats is facing economic challenges due to the anticipated continuation of weak metal prices over the next 12 to 18 months.
In a staff circular, dated March 18, issued by Zimplats Chief Executive Officer Alex Mhembere, the company said the voluntary redundancy packages are a preemptive measure to avoid compulsory layoffs. Reads the circular:
<blockquote>
We have been communicating through our usual platforms about the difficult operating environment that we face. PGM prices remain very weak and this situation is projected to last for the next 12-18 months.
We have been working with all teams across the board in implementing various cost containment and cash preservation programmes.
I wish to thank all team members for diligently rallying behind our efforts in this regard. I am confident that as a team we will successfully navigate through the headwinds.
While our cost containment and cash preservation programmes yield expected results, the company’s situation remains difficult and therefore additional measures still need to be undertaken.
One of the measures that the company will implement is a voluntary retrenchment exercise for all employees wishing to be considered. If successful, this will mitigate the need for a compulsory retrenchment.
Those wishing to be considered for the voluntary retrenchment package should approach the respective Divisional HR Department for the application form beginning Tuesday 19 March 2024. The completed forms must be submitted to the respective HR Department by 22 March 2024.
It is important to point out at the outset that management reserves the right to approve or decline any application based on business requirements and this is not subject to an appeal process.
The voluntary retrenchment package will be as follows:
<ul>
<li>Two week’s pay for every completed year of service</li>
<li>One-month notice pay</li>
<li>Minimum guaranteed package of three months for employees whose retrenchment package is less than three months.</li>
<li>All statutory requirements will be paid out together with the package.</li>
</ul>
The HR Team will provide full details of the process and packages.
Approved applicants will receive a voluntary retrenchment agreement detailing the terms and conditions of the retrenchment including all payments due.
Employees who proceed on voluntary retrenchment will be considered good leavers and will be eligible for re-employment in future whenever suitable new opportunities arise.
</blockquote>
Meanwhile,  other PGM mining companies, such as Impala Platinum (Implats), have also faced similar challenges.
Implats and its peers have already cut thousands of jobs in neighbouring South Africa, which accounts for about 70% of global platinum output. 
The recent slump in metal prices has significantly impacted their profits
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Zimplats Initiates Voluntary Job Cuts To Contain Costs

An elevator accident at an Impala Platinum Holdings’ (Implats) platinum mine in South Africa has resulted in the death of 11 workers and injured 75 others, with 14 in critical condition. The incident occurred on Monday evening at the end of the workers’ shift at a mine in Rustenburg. Implats has suspended all operations and launched an investigation into the cause of the accident. The Minister of Mineral Resources and Energy, Gwede Mantashe, has also announced a government investigation into the tragedy.
All 86 workers involved were in the elevator at the time of the accident. Some of the injured workers have suffered serious fractures. The elevator dropped an estimated 200 meters, though further investigations will provide more accurate details. The mine shaft itself is approximately 1 kilometre deep.
In a statement seen by Pindula News, Platinum Holdings Limited (Implats) said the elevator unexpectedly started going down while carrying workers to the surface. The rapid descent was stopped by the counterweight getting trapped. Emergency protocols were followed, and rescue teams were mobilised. Read the statement in part:
<blockquote>
Impala Platinum Holdings Limited (Implats) is devastated to report that 11 employees tragically lost their lives in the serious accident at Impala Rustenburg’s 11 Shaft at 16:54 yesterday afternoon. A further 75 employees were injured in the accident and were transferred and admitted for treatment to four hospitals in the region. The mine rescue operation is complete and all 86 employees are accounted for. 
We are presently in the process of informing and liaising with the impacted families in consultation with the Association of Mineworkers and Construction Union (AMCU) and are working closely with the Department of Mineral Resources and Energy (DMRE). All mining operations at Impala Rustenburg are suspended today.
</blockquote>
Implats CEO, Nico Muller, said:
<blockquote>
This is the darkest day in the history of Implats and our hearts are heavy for the lives lost and the individuals affected by this devasting accident. We are deeply shocked and saddened by the loss of our colleagues and are in the process of ensuring all next of kin have been contacted. Implats is offering ongoing support to the families and colleagues of those lost in service. We also hold our injured colleagues in our thoughts at this incredibly difficult time.
I extend my deepest gratitude to the local medical services from the Bojanala District and the Impala Medical Services team who worked tirelessly during this crisis to provide the necessary emergency paramedic services, secure additional ICU beds and ambulances, mobilise additional general surgeons and secure the support of three private hospitals to assist our Impala Hospital in caring for the critically injured.
We are also extremely grateful to all the proto and rescue teams for their tireless and courageous efforts, working under very difficult circumstances, to rescue our 11 Shaft team members. We value the efforts of all stakeholders coming together in this extremely difficult time, particularly the emergency responders.
</blockquote>
South Africa is the world’s largest producer of platinum, and the Impala Rustenburg mine is one of the largest platinum mines globally. The country has seen a decrease in mining fatalities in recent years, with 49 reported in 2022 compared to 74 the previous year. This is a significant improvement from the nearly 300 fatalities recorded in the year 2000.
Implats has a subsidiary in Zimbabwe, Zimplats, which operates the Ngezi mine and benefits from the support of Implats. Both companies are involved in platinum mining but have separate operations and management teams.
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South Africa: Elevator Accident At Impala Platinum Holdings' Mine Leaves 11 Dead, 75 Injured

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