Table of Contents
Key Points
- Sibanye-Stillwater may close unprofitable South African PGM operations if commodity prices remain low amid rising costs in 2024.
- Over 10,000 jobs lost in South Africa’s mining sector, with Sibanye cutting 2,600 roles as PGM prices stay near multi-year lows.
- Sibanye invests in battery metals and explores new industrial uses for PGMs as demand for autocatalysts cools.
South African mining giant Sibanye-Stillwater, led by outgoing CEO Neal Froneman, is sounding the alarm over potential shaft closures and more job losses as platinum group metal (PGM) prices remain stuck near multi-year lows.
In its annual report, the company warned that its South African PGM operations—already trimmed by cost-cutting measures—may no longer be viable if prices don’t recover soon. “Rising costs and a low basket price mean that the mines at the top of the cost curve are loss-making,” the company said. “If the basket price does not improve this year, it may become necessary to close out some unprofitable areas.”
Job losses mount as PGM slump deepens
The downturn in the PGM market is being felt across South Africa, the world’s top platinum producer. Over the past year, the country’s mining sector has shed more than 10,000 jobs, with Sibanye alone cutting 2,600 roles at its local operations. Anglo American Platinum has laid off 3,700 workers, while Impala Platinum let go of 4,000.
Sibanye expects a modest drop in South African PGM production in 2024 but says it is adjusting its operations to stay aligned with where the industry is heading. Part of that strategy includes investing in battery metals and exploring new industrial applications for PGMs, as demand from traditional uses—like autocatalysts—starts to slow.
While global electric vehicle sales have cooled recently, growing demand for hybrid vehicles is helping to keep the autocatalyst market afloat. Even so, Sibanye expects recycling volumes for these materials to remain under pressure due to high interest rates, steep vehicle prices, and stubborn inflation.
Leadership transition as company pivots
As Froneman prepares to step down after more than a decade at the helm, he leaves behind a company that has expanded far beyond its South African roots. Holding a 0.12% stake—or 3.28 million shares—in Sibanye, Froneman has overseen its growth into a diversified global miner with assets spanning gold and base metals across the Americas.
Despite the difficult environment, Sibanye narrowed its full-year loss to $311 million in 2024—down sharply from $2.03 billion the year before—helped by a rebound in gold prices and a restructuring drive aimed at cutting costs and improving efficiency.
Looking ahead, much of the company’s future in PGMs will depend on how global auto trends play out this year—particularly the delicate balance between the rise of electric mobility and continued demand for traditional combustion engines.
