Sibanye Stillwater Announces Restructuring Plan for Southern Africa

Sibanye-Stillwater is reviewing some of its South African operations like the Kloof mine.
(Photo: Sibanye)
Sibanye-Stillwater said it is discussing with its employees a proposed restructuring plan for its South African gold operations and its services functions for the southern Africa region. The company said an ongoing group business review has identified a need to address losses at the Beatrix 1 shaft, which has been unable to deliver planned production, and the Kloof 2 Orion’s 641-km2 which, after the closure of the Kloof 4 shaft during 2023, has had insufficient processing material available to cover overheads. The deferral of capital expenditure at the Burnstone project, announced in February 2024, also requires restructuring aligned with the reduction in planned capital activities.

The proposed restructuring of the operations and services could potentially affect 3,107 employees and 915 contractors. “We continue to act prudently to protect the balance sheet and ensure the sustainability of the group,” said Neal Froneman, CEO, Sibanye-Stillwater. “We are committed to constructively engaging with affected employees and through their representatives to minimize job losses.”

The reduction in the operational footprint in the southern Africa region, due to the recent restructuring and closure of loss-making shafts and from proposed future restructuring or closures, has resulted in surplus capacity as far as current and future requirements. As a result, the company is proposing a re-alignment of the regional services, shared services, and direct services structures to align with the requirements of the reduced operational footprint.

As featured in Womp 2024 Vol 05 -