African Rainbow Minerals Reshuffles Leadership Amid Platinum Division Losses

African Rainbow Minerals (ARM) has announced the removal of Thando Mkatshana as CEO of its struggling platinum division following eight years in the role. The leadership change comes after ARM Platinum reported a headline loss of R689 million ($37 million) for the six months ending December 2024, more than double the loss recorded during the same period in 2023. The division’s underperformance has prompted a strategic restructuring to stabilize operations.

The Bokoni platinum mine, acquired by ARM from Anglo American Platinum and Atlatsa Resources in 2022, has been a significant drag on earnings. Bokoni failed to meet production guidance during the review period, leading ARM to scale back development and restructure the operation to mitigate financial losses. The mine’s challenges contributed to a 49% decline in ARM’s interim headline earnings, which fell to R1.52 billion ($81 million). The company’s interim results reflect broader pressures in the platinum group metals (PGM) sector, including declining prices and rising costs.

Mkatshana will now lead ARM Technical Services, a division recently reintroduced to enhance operational efficiency across the group. Johan Jansen, a 12-year veteran of ARM Platinum, has been appointed as interim CEO while the company searches for a permanent replacement. Jansen currently oversees general managers at all of ARM’s platinum mines and is expected to provide stability during this transitional period.

ARM chair Patrice Motsepe expressed gratitude for Mkatshana’s contributions and confidence in both leaders’ new roles. "I am confident that Thando and Johan in their new responsibilities will contribute to the global competitiveness of the company and create value for ARM’s shareholders," Motsepe said.

The leadership changes come at a critical time as ARM Platinum faces mounting challenges. PGM prices have dropped sharply over the past year due to weaker demand from China and global economic uncertainty. Bokoni mine, which resumed production in late 2023 after being placed on care and maintenance by its previous owners, has struggled with higher-than-expected costs and operational inefficiencies.

ARM has deferred plans for Bokoni’s expansion due to depressed commodity prices, focusing instead on conserving cash while ramping up production on a phased basis. The company aims to stabilize its platinum operations and improve profitability amid ongoing market pressures.