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Sibanye-Stillwater's gold division will enter into Section 189 consultations regarding the future of two gold operations, where possible retrenchments could affect 1 959 employees and 465 contractors.
On Tuesday the company said it will enter into talks with organised labour and other affected stakeholders regarding the possible restructuring of its South African gold operations following ongoing losses at the Beatrix 4 shaft and the impact of depleting mineral reserves to the Kloof 1 plant.
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.
Sibanye said the proposed restructuring could potentially affect employees at Beatrix 4 shaft, as well as those employees who provide support services to the shaft, and Kloof 1 and 2 plants. In addition, employees may be affected at associated companies, including Sibanye Gold Protection Services Limited and Sibanye Gold Academy Proprietary Limited.
"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 said in a statement.
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 Africa gold operations, and ultimately also the employees of the broader Group, said Sibanye's chief regional officer for Southern Africa, Richard Stewart.
"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," he said.
