More than 1,100 South African mining jobs are now on the line
RUSTENBURG — More than 1,100 workers and contractors face an uncertain future at Sibanye Stillwater’s Kwezi platinum shaft near Rustenburg after the mining group began a formal restructuring process that could bring a 24 year mining operation to an end as economically viable reserves run out.
The company has started consultations under Section 189A of the Labour Relations Act with organised labour and affected non unionised employees. The process could affect about 781 permanent employees and 333 contractors, placing 1,114 jobs at risk.
Sibanye Stillwater stressed that no final decision has been made to close the shaft or retrench all affected workers. The consultation process will consider alternatives to avoid or reduce job losses, mitigate the impact on employees and determine whether anything can be done to improve Kwezi’s viability.
The difficulty is that Kwezi appears to be confronting more than a temporary financial downturn. The mature underground platinum group metals operation has reached the limits of its approved mining licence area and is running out of economically mineable reserves.
Sibanye Stillwater said it had spent several years attempting to extend the shaft’s life through reserve optimisation and adjustments to mining boundaries. A proposed Kwezi Shallows project was also intended to provide access to additional shallow mineral resources and extend production, but stakeholder objections, appeals and delays in obtaining approvals prevented the project from progressing as planned.
“The absence of these additional reserves has accelerated depletion of the remaining mining inventory and weakened the shaft’s sustainability,” the company said.
The financial pressure has already been substantial. Kwezi lost approximately R208 million in 2024 and another R91 million in 2025, taking losses over the two years to about R299 million.
Higher platinum group metals prices helped the operation return to positive margins during the first half of 2026, but Sibanye Stillwater expects the improvement to be temporary. Kwezi is forecast to return to losses during the second half of the year as production continues to decline.
The shaft produced 20,658 4E ounces during the first six months of 2026, representing less than 3% of Sibanye Stillwater’s total managed and attributable South African PGM production of 734,645 4E ounces during the period.
CEO Richard Stewart acknowledged the uncertainty the process would create for employees and their families.
“We acknowledge and are sensitive to the uncertainty that consultation processes create for employees and their families and remain deeply committed to engaging constructively throughout the process,” Stewart said.
“Unfortunately, given the depletion of economically mineable reserves and the corresponding declining financial outlook, it is necessary to commence consultations regarding the future of Kwezi shaft.”
For Rustenburg and surrounding communities, the consequences could extend beyond the 1,114 people directly affected. Mining wages support households and local businesses, while contractors and suppliers remain dependent on operating mines in an economy closely tied to the platinum industry.
The Section 189A process does not mean all 1,114 jobs will be lost. Labour law requires Sibanye Stillwater and employee representatives to consider alternatives before retrenchments are finalised, including measures that could reduce the number of workers affected.
But Kwezi’s underlying problem remains difficult to escape. Higher PGM prices may improve margins, but they cannot replace depleted reserves. Unless the consultation process identifies another economically viable way of extending the operation, a shaft that has been mining near Rustenburg for about 24 years could be approaching the end of its life.
Anyone with additional information can contact the press desk at press@townpress.co.za.