Wesizwe Platinum initiates Section 189A process as Bakubung Mine faces economic pressure
Nearly 500 employees are affected as the company consults stakeholders on retrenchments and implements a temporary operational shutdown to safeguard the mine's future.
A difficult chapter is unfolding for South Africa’s mining sector after Wesizwe Platinum Limited announced the commencement of a Section 189A consultation process at its flagship Bakubung Platinum Mine in Ledig, North West.
In a statement, the company said the consultation process forms part of its future 3.5-million-tonnes-per-annum (Mtpa) strategy and has become necessary due to the mine’s current economic challenges. Wesizwe stated that the process is aimed at preventing the operation from facing liquidation and ensuring its long-term sustainability.
While no final decision has been made regarding potential retrenchments, consultations are currently underway with recognised trade unions and elected employee representatives.
A total of 497 employees have been identified as potentially affected by the Section 189 process.
“Wesizwe recognises the sensitivity of this process and the potential impact it may have on employees, families, host communities and other stakeholders. The company remains committed to engaging openly, responsibly and constructively with affected employees, organised labour, regulators, local government, traditional leadership and other relevant stakeholders as the process unfolds,” the company said.
In addition to the consultation process, Wesizwe has implemented a temporary operational shutdown at Bakubung Platinum Mine as it seeks to address the mine’s financial position and secure its future viability.
The development comes amid ongoing pressures facing South Africa’s platinum group metals sector, where producers continue to grapple with challenging market conditions, rising operational costs and subdued commodity prices.
