Implats halts South Africa’s largest platinum mine after six deaths spur safety concerns

Impala Platinum (JSE: IMP) has suspended mining for four days at its Rustenburg complex in South Africa after six recent worker deaths prompted a comprehensive safety reset.

The platinum-group metals producer recorded four fatal workplace injuries in the financial year ended June 30, followed by two underground locomotive fatalities in July. Rustenburg employs about 51,500 people and accounts for almost half of Implats’ total production.

During the shutdown, the company will conduct workplace inspections, targeted training and a mass employee engagement session, it said on Monday. It will also appoint independent specialists to independently assess its safety systems and recommend improvements. Implats said the impact on production will be assessed once operations resume.

Shares in Impala Platinum fell 1.1% in Johannesburg to close at 175.06 rand (C$14.76) apiece on Monday, valuing the company at 158 billion rand (C$13.4 billion). 

‘Decisive action’

“Our aspiration is that every employee returns home safely every day,” the company said. “Recent serious incidents have reinforced the need for us to pause, reflect, review and take decisive action.” 

The suspension highlights the safety challenges confronting South Africa’s deep-level mining industry, where some of the world’s oldest platinum mines are also among the deepest and most expensive to operate. 

South African producers including Implats and Sibanye-Stillwater (JSE: SSW; NYSE: SBSW) account for most global platinum production, supplying the metal used in catalytic converters to reduce harmful emissions from gasoline and diesel vehicles.