Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Sibanye-Stillwater enters Section 189 consultation with stakeholders at its Marikana
operation and associated services
Johannesburg, 25 September 2019:
Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL)
advises that it will enter into consultation with relevant stakeholders in terms of
Section 189A (S189 process) of the Labour Relations Act, 66 of 1995 (LRA), regarding
the restructuring of its Marikana operation and associated services (the “Marikana
operation” (previously “Lonmin”)). This is pursuant to ongoing financial losses
experienced at these operations with certain shafts having reached the end of their
economic reserve lives. The restructuring will result in the rationalisation of
overheads and the realisation of other synergies and efficiencies required to restore
profitability and ensure the sustainability of the remaining shafts at the Marikana
operations.
Through a formal Section 189 consultation process, the Company and affected stakeholders
will together consider measures to avoid and mitigate possible retrenchments and seek
alternatives to the potential cessation or downscaling of operations at the affected
shafts and associated services.
The S189 process follows a detailed three month review of the Marikana operation, post
the Lonmin acquisition becoming effective in June 2019. The review and planning process
included the simulation of alternative scenarios to minimize job losses.
Subject to the completion of the S189 consultation, the following actions have been
deemed necessary in order to ensure the sustainability of this operation:
•
Reducing and optimising the operational footprint including, inter-alia:
The cessation of operations at the East 1 (E1), West 1 (W1) and Hossy shafts
and the open-cast operations. These shafts and operations are loss making and
have reached the end of their economic reserve lives. Pending the outcome of
the S189 process, it is proposed that these shafts will initially be placed on
care and maintenance
Ameliorate associated cost at some of the Marikana shafts which have previously
been placed on care and maintenance
Optimisation of downstream concentrators, smelter and refineries, including
closure of the Eastern Platinum C-stream (EPC) and Rowland concentrator plants
Rightsizing of the related support services and overhead structures associated
with the aforementioned shafts
•
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Application of the Sibanye-Stillwater operating model to all mining and metallurgical
processing units at the Marikana operation and the extension of existing Sibanye-
Stillwater services to improve efficiencies and achieve cost savings necessary for
sustainability
Approximately 5,270 jobs (~3,904 employees and ~1,366 contractors) are expected to be
lost due to the restructuring. As a result of an improved PGM commodity price environment
the amount of job reductions is significantly less than previously communicated by
Lonmin in 2017, with inter-alia, a plan to access sustainable reserves with enhanced
crew efficiencies at the 4Belt (4B) shaft complex, which was scheduled for closure,
retaining approximately 2,700 employees and contractors.