Zimplats offers voluntary retrenchments to staff a...

Zimplats offers voluntary retrenchments to staff as economic pressures mount

**Zimplats chief executive officer, Alex Mhembere**

Nyashadzashe Ndoro

Zimbabwe’s platinum mining giant, Zimplats Holdings Ltd, is set to begin voluntary retrenchments today in a bid to cut costs and ensure the company’s survival amid a deteriorating economic climate.

This decision comes as the Zimbabwean economy faces renewed currency volatility and surging inflation, leading to a wave of company closures and downsizing across all sectors of the economy.

Platinum prices have also fallen on the global market, further worsening the company’s financial problems. A confluence of factors on both the supply and demand sides has contributed to platinum’s bearish price performance in recent years.

Zimplats will prioritise voluntary retrenchment over compulsory measures, with the ultimate approach depending on the effectiveness of the voluntary programme. The company’s CEO, Alex Mhembere, attributed the job cuts to the “difficult operating environment” Zimplats currently faces.

The voluntary retrenchment programme will be open to any Zimplats employee interested in participating.

“We have been communicating through our usual platforms about the difficult operating environment that we face. PGM prices remain very weak and this situation is projected to last for the next 12-18 months. We have been working with all teams across the board in implementing various cost-containment and cash-preservation programmes. I wish to thank all team members for diligently rallying behind our efforts in this regard. I am confident that as a team, we will successfully navigate through the headwinds.

“While our cost-containment and cash-preservation programmes yield expected results, the company’s situation remains difficult and therefore additional measures still need to be undertaken.

“One of the measures that the company will implement is a voluntary retrenchment exercise for all employees wishing to be considered. If successful, this will mitigate the need for a compulsory retrenchment. Those wishing to be considered for the voluntary retrenchment package should approach the respective Divisional HR Department for the application form beginning Tuesday, 19 March, 2024. The completed forms must be submitted to the respective HR Department by 22 March, 2024,” Mhembere said.

The mining house, listed on the Australian Stock Exchange, is implementing a broader cost rationalisation strategy. The strategy encompasses a series of actions aimed at reducing expenses, optimising resources, and ultimately positioning Zimplats for long-term stability. The company’s goal is to navigate away from the current economic decline and onto a path of sustainable growth.

Zimplats Holdings, a subsidiary of South African Implats, is situated on the Hartley Geological Complex, roughly 150 kilometers southwest of Harare, Zimbabwe. The company operates both opencast and underground mines at Ngezi.