In a bid to boost profitability, Sibanye-Stillwater has announced its decision to continue mining operations at the Beatrix 1 shaft in South Africa’s Free State province, provided there are no net losses reported on a trailing three-month basis from June 1. This move comes as part of the group’s efforts to streamline its South African gold and platinum group metal (PGM) operations into a more efficient operational structure.
CEO Neal Froneman stated that the group has restructured its South African region to align with the reduced operating footprint, aiming for greater sustainability and profitability. The announcement followed the outcome of Section 189 consultations initiated in April, affecting over 3,000 employees and contractors in the South African gold operations.
The Beatrix 1 shaft, which currently employs 422 staff and 100 contractors, faces closure if the profit target is not sustained. However, Sibanye-Stillwater specifies that the closure would be subject to certain conditions. As part of the restructuring process, the group noted that a significant number of employees took voluntary separation packages, while others were transferred or retrenched.
Despite the reduction in employees and contractors in the South African region, Sibanye-Stillwater emphasized that only a fraction of the impacted workforce was forcibly retrenched. With ongoing efforts to optimize operations and enhance profitability, the group remains committed to delivering shared value and ensuring the sustainability of its mining operations.
