Proposed restructuring at Sibanye-Stillwater mines could potentially affect 2 424 employees and contractors at Beatrix 4 shaft, and Kloof 1 and 2 plants.
In addition, employees may be affected in associated companies, including Sibanye Gold Protection Services and Sibanye Gold Academy Proprietary Limited.
The company has entered into a S189 consultative process, following numerous unsuccessful attempts to address productivity and other operational issues at the Beatrix 4 shaft and the depletion of Surface Rock Dump (SRD) mineral reserves to Kloof 1 plant.
This is based on ongoing losses experienced at the Beatrix 4 shaft and the impact of depleting mineral reserves to the Kloof 1 plant.
“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 and associated services,” said Richard Stewart, Chief Regional Officer: Southern Africa
In a statement Stewart said that the life of the Beatrix 4 shaft was previously prolonged, following S189 consultations in 2017.
“Through the successful adoption of productivity enhancement and cost containment measures implemented following consultation with stakeholders, this enabled Beatrix 4 Shaft to remain in operation as long as it made a profit,” said Stewart.
These measures were evaluated every 3 months, after accounting for all-in sustaining costs.
The SRD mineral reserves that are treated at Kloof 1 plant are nearly depleted, and the Kloof Main SRD will be
completely mined out by December.
“Subject to the outcome of the consultation process, it is envisaged that the proposed restructuring (of both Beatrix 4 shaft and Kloof 1 plant) may potentially result in the retrenchment of up to 1 959 employees and affect 465 contractors.
The purpose of the section 189 consultation process is to engage in a meaningful joint consensus seeking process in an attempt to avoid job losses.
It is anticipated that the consultation process will reduce the number of employees that may potentially be retrenched through the implementation of, amongst other things, possible retrenchment avoidance measures, including natural attrition, retirements, voluntary separation and the transfer of suitably skilled employees to vacant positions,” said Stewart.
“To allow shafts and operating plants that are no longer sustainable to continue operating at a loss, will threaten the remaining life of mine of the other South African gold operations, and ultimately also the employees of the broader group.
“We are committed to minimising the impact of the proposed restructuring and will constructively engage with all relevant stakeholders in an effort to avoid job losses, while attempting to limit the impact on the remainder of the operations employees and the sustainability of the group,” said Stewart..
