Sibanye Gold to begin restructuring plans

Sibanye Gold to begin restructuring plans

Sibanye Gold, Africa’s largest Gold producer said it will enter into consultation with relevant stakeholders in terms of section 189A of the Labour Relations Act, 66 of 1995, regarding restructuring of its gold operations pursuant to ongoing losses experienced at its Beatrix West and Cooke Operations.

The initiation of S189 consultations comes after the company’s numerous unsuccessful attempts to contain losses at these operations. Losses experienced at these operations negatively affect Group cash flow as well as the sustainability and economic viability of other operations in the Southern Africa region, in this way, posing a threat to more sustainable employment across the region.

Since listing in 2013, Sibanye has steadily grown as an employer, from 37,700 employees four years ago, to becoming one of the largest employers in the South African mining industry with 58,000 permanent employees. Approximately 7,400 Sibanye employees at all levels may be affected as a result of the proposed restructuring. Through the Section 189A consultations, the company and affected stakeholders will consider alternatives to potential closure of the operations in an attempt to avoid or reduce retrenchments.

Neal Froneman, Chief Executive Officer of Sibanye commented: “The decision to commence with this restructuring process has not been taken lightly. The long-term sustainability of the Group as a whole is our primary focus and is necessary if we are to continue to deliver superior value to all of our stakeholders. The losses experienced at the Beatrix West and Cooke operations threaten the future of other Group operations and the employment of many other South Africans.

The company said it is aware of the difficult socio-economic environment in South Africa, and will engage with all relevant stakeholders in an effort to minimise job losses while ensuring that additional jobs are not placed at risk in future.”