Amplats reviews contracts with more than 600 suppliers as it seeks to slash costs
The number of job losses announced by Anglo American Platinum could rise significantly once the impact of the review on its contracted companies becomes apparent.
The world's largest producer of the metal used in catalytic converters said on Monday it had started a Section 189 process that could result in about 3 700 of its direct employees losing their jobs across South Africa. As part of aggressive cost-cutting measures, Amplats said it is reviewing the contracts of 620 companies on its supplier register.
While the company would not provide any estimates, this could significantly raise the number of jobs lost. Mining companies rely on contractors to provide labour for many non-core, labour-intensive tasks in their operations. Amplats said it did not know how many people are employed by the contractors, and thus could not provide an estimate of the impact on indirect jobs.South Africans need to be in the know if we want to create a prosperous future.