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WESIZWE PLATINUM LIMITED - Bakubung Platinum Mine enters section 189 consultations

Release Date: 27/11/2023 11:15
Code(s): WEZ     PDF:  
Wrap Text
Bakubung Platinum Mine enters section 189 consultations

(Incorporated in the Republic of South Africa)
(Registration number: 2003/020161/06)
Share code: WEZ
ISIN: ZAE000075859
(the "Company")


Shareholders are advised that Bakubung Minerals (Pty) Ltd ("Bakubung") will enter into
consultations in terms of Section 189A of the Labour Relations Act 66 of 1995, as amended
with organized labour and other affected stakeholders, regarding the possible restructuring
of its operations.

The initiation of the section 189 consultations comes at the backdrop of the decision by the
Board of Directors to approve changes from hybrid mining method to Board & Pillar mining
which will see a reduction in the number of employees needed to establish and maintain the
required production profile in the business plan. The contemplated retrenchment consultation
process has further been compounded by the downturn in the mining industry as well as the
two community strikes in the year 2022 and 2023 and the recent five (5) weeks unprotected
strike which affected the mine development progress adversely.

As part of its endeavours to improve efficiencies, Bakubung is of the view that there is a need
to restructure in order to ensure efficient and effective operation of its business and in doing
so, achieve reduction in operating expenditure. The possible restructuring could potentially
affect 571 employees. The number includes employees at different staff levels in all areas of
the business.

Through the formal Section 189 consultation process which will be facilitated under the
auspices of the CCMA, the Company and affected stakeholders will together consider
measures and alternatives to avoid and mitigate possible retrenchments. However, the
preliminary view of Bakubung is that there simply does not appear to be any alternatives
available owing to the fact that continuing with the status quo of the current headcount of 761
employees would not be reasonable and/or viable alternative because it would not address
the current state of Bakubung and the need to implement measures to improve efficiencies
and to ensure that Bakubung is placed on the path of profitability and growth. As things stand
Bakubung has already stopped overtime and weekend work, did not renew contracts of
mining contract services and fixed-term contracts of non-critical staff and placed a
moratorium on recruitment of non-core and critical staff with the aim of reducing the bloated
structure that causes inefficiencies.

Bakubung will continue to engage with all relevant stakeholders in an attempt to limit the
impact on the remainder of the operations and employees at Bakubung.

27 November 2023

PSG Capital

Date: 27-11-2023 11:15:00
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