By Lehlohonolo Lehana.
Sibanye-Stillwater will enter into consultations with organised labour and other affected stakeholders, in terms of Section 189A of the Labour Relations Act, regarding the possible restructuring of its South African gold operations.
On Tuesday the company said the possible restructuring of its South African gold operations follows ongoing losses at the Beatrix 4 shaft and the impact of depleting mineral reserves to the Kloof 1 and 2 plants.
In addition, employees may be affected in associated companies, including Sibanye Gold Protection Services and Sibanye Gold Academy.
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 result in the retrenchment of up to 1 959 employees and affect 465 contractors.
The formal consultation process has been launched in terms of Section 189 of the Labour Relations Act and will consider measures to avoid and mitigate possible retrenchments and look for alternatives to the potential cessation or downscaling of operations and associated services.
Possible retrenchment avoidance measures include natural attrition, retirements, voluntary separation and the transfer of suitably skilled employees to vacant positions.
The move comes after Sibanye’s gold business and workers clinched a wage deal in June, following a three-month strike.
The life of the Beatrix 4 shaft was previously prolonged, following Section 189 consultations in 2017, which, through the successful adoption of productivity enhancement and cost containment measures implemented following consultation with stakeholders, enabled it to remain in operation as long as it made a profit, on average, over any continuous period of three months (after accounting for all-in sustaining costs), the company outlines.
Further, 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.
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, Sibanye explains.
It says ongoing engagement with stakeholders through regular future forum meetings to address the plight of Beatrix 4 shaft and Kloof 1 plant have been unsuccessful.
It has become increasingly evident that, due to increasing costs and an inability to achieve targeted productivity levels, it will be difficult to secure the profitability levels required for the sustainability of the mine and plant,” the company notes.
“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,” says Sibanye Southern Africa chief regional officer Richard Stewart.