A China-backed platinum project that spent nearly two decades trying to become one of South Africa’s next major mining operations is tearing up its production plans and preparing to cut about 70% of its workforce, underscoring the challenges facing even well-funded mining ventures in Africa’s largest platinum-producing nation.

Wesizwe Platinum said its Bakubung mine in South Africa’s North West province will begin a restructuring process that could affect 497 employees, representing roughly 70% of its 706-strong workforce.

The announcement marks another setback for a project that has been under development for more than 17 years and was originally designed to produce about 420,000 ounces of platinum group metals annually.

The company said it would abandon its previous strategy of gradually ramping up production to one million tonnes of ore a year and instead pursue a single-stage increase to 3.5 million tonnes annually. Wesizwe argued that maintaining its current workforce would not solve the mine’s operational challenges or restore profitability.

The decision comes at a striking moment for the global platinum industry. While several platinum producers have benefited from a rebound in platinum prices over the past year amid tightening supplies and expectations of stronger industrial demand, Bakubung continues to struggle with operational and financial difficulties that have prevented it from capitalising fully on improving market conditions.

Bakubung has long been viewed as one of South Africa’s most significant undeveloped platinum assets. The project attracted substantial Chinese backing through China-Africa Jinchuan Investments, which owns about 45% of Wesizwe, reflecting Beijing’s long-standing interest in securing exposure to strategic mineral resources across Africa.

Yet despite the financial support and years of development work, the mine has encountered a series of obstacles. The company has previously disclosed labour unrest, including strikes and an illegal underground sit-in that disrupted operations. It has also grappled with technical challenges involving mining methods and processing infrastructure, including issues linked to the concentrator plant needed to process ore into valuable platinum group metals. Those setbacks have repeatedly delayed the mine’s path to stable commercial production.

The latest restructuring suggests management has concluded that the original operating model is no longer viable.

The operational difficulties have been accompanied by growing financial and governance concerns. Wesizwe’s shares remain suspended from trading on the Johannesburg Stock Exchange after the company failed to publish financial results within the required deadlines. Although the miner eventually released its delayed interim and full-year results for 2025, the suspension remains a cloud over the company and has heightened investor concerns about its future direction.

For investors, the combination of delayed reporting, operational setbacks and large-scale job cuts raises fresh questions about how much additional capital may be required before Bakubung reaches its intended production levels.

The cuts are another reminder of the pressures facing South Africa’s mining sector even as commodity markets show signs of recovery. Platinum remains one of the country’s most important mineral exports, supporting thousands of jobs and generating valuable foreign exchange earnings. However, the Bakubung experience highlights a broader reality confronting the industry: strong commodity prices alone do not guarantee success. Execution problems, rising costs, labour tensions, technical failures and funding constraints can still derail projects despite favourable market conditions.

For South Africa, the setback is particularly notable because Bakubung was expected to become a significant new source of platinum group metals at a time when the country is trying to attract fresh mining investment. Instead, one of its most closely watched platinum projects is now shrinking its workforce and rewriting its business plan in an effort to survive.