Ivanhoe Mines is preparing to lay-off 325 workers at its South African unit after keeping them on full-paid standby for the passed four months.
According to Ivanhoe Mines executive chairman Robert Friedland, the company began the Section 189 process on 15 October, when it notified and consulted with 212 employees and 113 contractors over the proposed job cuts, reported Bloomberg.
Meanwhile, Ivanhoe's Vancouver-based unit Ivanplats is awaiting a mining license from the Department of Mineral Resources (DMR) for its new $1.6bn Platreef platinum project.
Ivanhoe has been using the funds kept aside for the development of the project to compensate the employees on hold.
Ivanhoe was quoted by the news agency as saying: "We believe that the company has complied with all the conditions set down by the Department of Mineral Resources when it granted the mining right, including the implementation of a broad-based black economic empowerment transaction.
"We remain in discussion with the DMR.
"Given that we still have no definite indication of when the mining right will be executed, we now have no choice but to begin the process established under the Labour Relations Act that could lead to a reduction in our workforce."
The Platreef project is one of Ivanhoe's three projects in Africa.