A China-backed platinum project that spent nearly two decades trying to become one of South Africa’s next major mining operations is tearing up its production plans and preparing to cut about 70% of its workforce, underscoring the challenges facing even well-funded mining ventures in Africa’s largest platinum-producing nation.
Wesizwe Platinum said its Bakubung mine in South Africa’s North West province will begin a restructuring process that could affect 497 employees, representing roughly 70% of its 706-strong workforce.
The announcement marks another setback for a project that has been under development for more than 17 years and was originally designed to produce about 420,000 ounces of platinum group metals annually.
The company said it would abandon its previous strategy of gradually ramping up production to one million tonnes of ore a year and instead pursue a single-stage increase to 3.5 million tonnes annually.
Wesizwe argued that maintaining its current workforce would not solve the mine’s operational challenges or restore profitability.
