On 23 February 2024, Sibanye-Stillwater (JSE: SSW and NYSE: SBSW) announced that consultations with relevant stakeholders in terms of Section 189A (S189) of the Labour Relations Act, 66 of 1995 (LRA) regarding the proposed restructuring of four shafts at its SA PGM operations (Simunye shaft, Kroondal operation, 4Belt (4B) shaft (subject to certain conditions), Marikana operation, Rowland shaft, Marikana operation and Siphumelele shaft, Rustenburg operation), as previously announced on 25 October 2023, have been concluded.

As per the announcement on 25 October 2023, 4 095 employees and contractors (3 500 employees and 595 contractors), including support services employees were potentially affected by the S189 process.

Through constructive consultations held between the company and affected stakeholders, during which various avoidance measures to mitigate possible retrenchments and minimise job losses at the operations and associated services were considered, the number of possible retrenchments was significantly reduced.

The outcome of the consultations was:

  • the Simunye shaft which ceased production in 2023, has been closed
  • the Rowland and Siphumelele shafts remain in operation but have been repositioned for sustainable levels of production at a lower cost structure
  • 4B shaft will continue to operate conditional on there being no net losses on a monthly basis. Should this not be sustained and subject to certain conditions the shaft will be closed.

Consequently, of the 4 095 employees and contractors (3 500 employees and 595 contractors), including support services employees who were potentially affected:

  • the 4B shaft currently employs 1 496 employees and 54 contractors;
  • there were 467 fewer potentially affected employees due to natural attrition since 1 September 2023
  • 351 employees accepted transfers to other shafts at the SA PGM operations to fill vacancies due to natural attrition since the start of the S189 process
  • 1 281 employees were granted voluntary separation or early retirement packages
  • 47 employees could not be accommodated through the agreed avoidance measures, and have been retrenched with 805 contractor employees also impacted

Neal Froneman, Sibanye-Stillwater’s CEO commented: “While the decision to close or restructure operations is never taken lightly, the S189 consultation process encouragingly achieved the necessary requirement of addressing loss-making operations and ensuring the sustainability of our SA PGM operations and the benefits and value they bring to multiple stakeholders. We acknowledge and thank all stakeholders for their constructive engagement.”

Source: Supplied by Sibanye-Stillwater