The Kwazi shaft restructure will affect 781 employees and 333 contractor employees.
For illustrative purposes. Picture: iStock
The National Union of Mineworkers (Num) in Rustenburg, North West, has urged government to take a closer look at mining giants shutting down operations in South Africa because of declining production.
The union says smaller-scale mining companies could step in and take over operations when larger miners believe there is no longer enough value left to justify continuing.
This comes as Sibanye-Stillwater enters section 189A consultations on the proposed restructuring of the Kwezi shaft at its South African platinum group metals (PGM) operations in Rustenburg.
Sibanye-Stillwater is not the first giant to close shop. De Beers recently issued employees at the Venetia mine in Limpopo with section 189A notices as it plans to pause production for two years.
NUM breaks silence on mine closures
A section 189A notice and consultation is a formal labour-law process used when a large employer plans mass retrenchments for economic or operational reasons.
“We are seeing this closure of operations becoming our fashion number,” NUM Rustenburg Regional Chairperson, July Radibe, told The Citizen.
“We are now calling upon our government to look at the small scale of mining because if now these big companies are going to shut down these operations because they’re not making a massive production, they can then give these mining licences to the small-scale mining companies to mine these operations.”
NUM believes there is still a way
According to Sibanye-Stillwater, the Kwezi shaft within the Rustenburg operation has reached the limits of the approved mining licence area. “As such, and in line with expectations, the shaft is approaching the end of its economic life,” said the company.
Radibe added that the union believes some mines still have production left, even if it is not massive.
“We believe that there’s still production left, even though it’s not a massive production like at the lifespan of Anglo, but we can still make a living out of these operations because we can upscale the operations and make a profit, when obviously, it’s a small-scale mine,” he said.
Sibanye-Stillwater loses millions
Sibanye-Stillwater, on Monday, said in a note to shareholders that it would embark on retrenchment consultations with relevant parties. The company noted that Kwezi shaft reported losses of approximately R208 million in 2024 and R91 million in 2025.
Although stronger PGM prices supported positive margins in the first half of 2026, Kwezi is forecast to return to losses in the second half of 2026 as production declines, the company said.
“Based on the outcome of a detailed operational and financial review of Kwezi shaft, the Company considers it necessary to commence a section 189A consultation process regarding the proposed restructuring of Kwezi shaft,” said Sibanye-Stillwater.
Over 1000 employees affected
Section 189A consultations do not always result in retrenchments. Before retrenching employees, companies must assess whether affected employees can be placed in other vacant positions if they have the necessary skills and qualifications.
Radibe said it gives the union hope that the company will consider alternative vacant positions within the group before retrenching employees. The Kwazi shaft restructure will affect 781 employees and 333 contractor employees.
“One of the guidelines in terms of the section 189A consultations is that we should save as many. And what gives us comfort, as the National Union of Mineworkers, is that Sibanye, as a company, is an international company.
“So we’ll look at alternatives of jobs that they’re having within their space of work and would then place those employees that are affected in different areas where that’s operating.”
Save jobs
Sibanye-Stillwater also noted that the consultation process will, among other things, “consider measures to avoid or minimise job losses, mitigate the impact on affected employees and evaluate alternatives that may improve the shaft’s viability. No final decision has been made.”
To support the declining production at the shaft, Sibanye-Stillwater said Kwezi produced 20 658 4E ounces in the first half of 2026, representing less than 3% of total managed and attributable SA PGM production of 734 645 4E ounces for the period.
“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. 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,” said Richard Stewart, chief executive officer.
