Sibanye-Stillwater Considers Restructuring Gold Operations in South Africa

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Sibanye-Stillwater is contemplating a restructuring of its gold operations in South Africa due to sustained losses and operational limitations. This decision could potentially impact nearly 3,000 workers.

The Johannesburg-listed precious-metals miner announced on Thursday its intention to initiate discussions with organized labor and other relevant stakeholders regarding the potential effects on 2,389 employees and 581 contract workers at the Kloof 4 mine shaft. The Kloof mine consists of four shafts in total and currently employs a total of 10,444 individuals, including employees and contractors.

The decision to consider this restructuring comes after repeated unsuccessful attempts to address productivity issues and operational constraints at the site. These challenges, such as seismicity and cooling constraints, have led to continued losses despite the recent surge in gold prices.

Furthermore, recent infrastructure damage at the project has had a detrimental impact on productivity and jeopardized the financial viability of the shaft.

“We will engage with all relevant stakeholders in an effort to avoid job losses while minimizing the impact on other operations and employees at the SA gold operations,” stated Richard Cox, Executive Vice President.

The Kloof 4 shaft currently produces an average of approximately 9,650 ounces of gold per month or 115,743 ounces annually. This represents 14% of the annual production from the SA gold operations, excluding DRDGOLD, in which Sibanye-Stillwater holds a stake.

At 1001 GMT, shares were up 84 South African cents, or 3.05%, at 28.37 South African Rand ($1.51).

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