Sibanye-Stillwater, the South African mining group led by Richard Stewart, is set to begin consultations with workers over a proposed restructuring of its Kwezi shaft at the company’s Southern Africa platinum group metals (SA PGM) operations.

The company said on Sept. 8, 2026, that it will enter into consultations under Section 189A of South Africa’s Labour Relations Act with organised labour and affected non-unionised employees through their representatives.

The proposed restructuring could affect approximately 781 employees and 333 contractor employees, although Sibanye-Stillwater stressed that no final decision has been made.

Kwezi shaft nears end of economic life

Kwezi is a mature underground platinum group metals shaft within Sibanye-Stillwater’s Rustenburg operation. Mining at the shaft has reached the limits of its approved mining licence area, bringing it closer to the end of its economic life.

Sibanye-Stillwater has implemented several initiatives over the years to extend Kwezi’s operating life, including reserve optimisation and adjustments to the mining boundary.

A proposed Kwezi Shallows project was expected to provide access to available shallow up-dip mineral resources, potentially adding reserves and supporting future production. However, stakeholder objections, appeals and delays in obtaining the required approvals have prevented the project from advancing as planned.

Without the additional reserves, the remaining mining inventory has depleted faster, weakening the shaft’s long-term sustainability. Kwezi recorded losses of approximately R208 million ($12.94 million) in 2024 and R91 million ($5.66 million) in 2025. While stronger PGM prices helped the shaft generate positive margins in the first half of 2026, Sibanye-Stillwater expects Kwezi to return to losses in the second half as production declines.

Proposed restructuring could affect 1,114 workers

Following a detailed operational and financial review, Sibanye-Stillwater said it considers the Section 189A consultation process necessary to determine the future of Kwezi.

The consultations will consider measures to avoid or minimise job losses, mitigate the impact on affected employees and assess alternatives that could improve the shaft’s viability.

Kwezi’s contribution to the group’s PGM production has also declined. The shaft produced 20,658 4E ounces in the first half of 2026, accounting for less than 3% of Sibanye-Stillwater’s total managed and attributable SA PGM production of 734,645 4E ounces during 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,” 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,” he added.

The restructuring process does not constitute a final decision on the shaft’s future, with consultations expected to determine whether alternatives can improve its viability while limiting the impact on employees.