Sibanye-Stillwater provides updates on its SA PGM operations
Multinational mining and metals processing group Sibanye-Stillwater updates its stakeholders on the repairs at its Siphumelele shaft at its Rustenburg operation and its end-of-life 4 Belt (4B) shaft at its Marikana operation.
Siphumelele shaft at the Rustenburg operation
On 29 February 2024, damage to surface infrastructure at the Siphumelele shaft resulted in the suspension of production from the shaft.
The incident occurred when an ore collector bin attached to the shaft headgear sheared off and fell to the ground, damaging a surface ore conveyor belt system.
There were no injuries as a result of the incident, however, the incapacitation of the ore collector bin and the collapse of the conveyor system necessitated the suspension of production and employees were placed on leave while the damage was assessed and repair work commenced.
Repairs at the Siphumelele shaft have progressed according to schedule. All employees returned from leave on Monday, 15 April 2024 for start-up procedures. The shaft is on schedule to resume production during May 2024, as planned.
The Siphumelele shaft was forecast to produce an average of approximately 4,500 4Eoz per month or 54,000 4Eoz planned for 2024, which accounts for approximately 3.5% of annual production from the SA PGM operations (excluding third-party processing and Mimosa).
4B shaft at the Marikana operation
Stakeholders are advised that the 4 Belt (4B) shaft has been unable to meet the profitability conditions set as an outcome of the Section 189A process of the SA PGM operations which was announced on 25 October 2023 and will be closed.
The closure comes five years after the initial proposed closure in 2019, with several successful initiatives supported by stronger PGM prices, enabling the shaft to remain open to mine the last remaining economically extractable reserves. Despite all efforts to restore the shaft to profitability since 23 February 2024, the 4B shaft has continued to be loss-making.
Attempts were made to reduce the impact on the affected 1,496 employees and 54 contractors at this shaft.
These outcomes include:
.Reduction of 226 employees since 23 February 2024 as a result of natural attrition (and not being replaced)
.469 employees were transferred to other SA PGM operations
.643 employees were granted voluntary separation or early retirement packages
.93 employees fixed term contracts ending and not being renewed
Unfortunately, 65 employees could not be accommodated and have been retrenched, while 54 contractors have been terminated.
Neal Froneman, Sibanye-Stillwater’s Chief Executive Officer commented: “Despite 4B shaft having limited remaining economic reserves, the decision to close a shaft is never taken lightly.
We cannot however continue to absorb ongoing losses, which in turn affects the viability of the rest of the SA PGM operations to the detriment of all stakeholders.
We are encouraged that the number of forced retrenchments was limited and we acknowledge and thank all stakeholders for their constructive engagement during the process.
As for Siphumelele, we are encouraged by the progress of the repair work at the shaft post the ore collector bin incident.”
