Sibanye-Stillwater, the biggest miner of platinum group metals (PGMs), has entered consultations with organised labour and affected stakeholders to restructure parts of its local gold operations which could lead to about 2,000 job losses.
The miner said it will look for alternatives to avoid and mitigate possible retrenchments at its Beatrix 4 Shaft in the Free State and Kloof 1 Plant View in Gauteng in its negotiations in terms of section 189 of the Labour Relations Act, which deals with retrenchments.
“Subject to the outcome of the consultation process, it is envisaged that the proposed restructuring may potentially result in the retrenchment of up to 1,959 employees and affect 465 contractors,” the company, valued at R124.86bn on the JSE, said on Tuesday.
“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 SA gold operations, and ultimately also the employees of the broader group,” the company’s chief regional officer of Southern Africa Richard Stewart said.
It added that employees may be affected in associated companies, including Sibanye Gold Protection Services and Sibanye Gold Academy as increasing costs and an inability to achieve targeted productivity levels are making it difficult to secure the profitability needed for the sustainability of the mine and plant.
The life of the Beatrix 4 shaft was prolonged after a section 189 consultation in 2017, while the surface rock dump (SRD) minerals that are treated at Kloof 1 plant are nearly depleted.
“The Kloof Main SRD will be completely mined out by December 2022. As a result, Kloof 1 plant will not be able to operate at full capacity, with its only remaining primary source of ore coming from Kloof 4 SRD. Cost reduction efforts have been ineffective in addressing the ongoing lack of profitability,” the company said.
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