More than 2,000 layoffs expected in South Africa's mining sector

Atlatsa Resources has announced its intention to close its Bokoni platinum mine in Limpopo province, South Africa.

The closure is part of a debt write-off and restructuring deal with joint venture partner Anglo American Platinum (Amplats), the world's largest producer of platinum group metals. The Boconi mine produced 170,000 tonnes of platinum group metals last year.

SABC News reported last week that more than 400 workers in Bokoni have already been released as the mine prepares to halt operations. More than 2,000 employees are expected to lose their jobs. A spokesman for the National Union of Miners said the mine will be placed under custody and maintenance and each employee will receive a severance package of two and a half weeks for each year of service.

Boconi's three-year program has laid off more than 6,000 workers, accounting for a third of its workforce. In 2015 and last year, the company stopped working on the open pit and scrapped expansion plans.

Amplats will write off about $ 400 million of Atlatsa's debt and acquire two adjacent exploration blocks and production rights at Bokoni. Amplats warned in July that its half-year profit could fall by two-thirds on the strength of the South African currency, lower sales and losses.

The South African mining sector is under intense pressure amid labor disputes, rising costs and weak prices, exacerbated by the introduction and subsequent suspension in July of a new mining charter.