Sibanye to consult labour on the future of its Kloof 4 shaft

Sibanye's Kloof gold mine

Sibanye's Kloof gold mine

14th September 2023

By: Creamer Media Reporter


Font size: - +

JSE- and NYSE-listed Sibanye-Stillwater will start consultations with organised labour and other affected stakeholders about the possible restructuring of its South African gold operations as a result of ongoing losses over an extended period and operational constraints at the Kloof 4 shaft, in Gauteng.

The consultations, being undertaken in terms of Section 189A of the Labour Relations Act, follow numerous unsuccessful attempts to address productivity issues and other operational constraints, including seismicity and cooling constraints associated with the chilled water reticulation circuit, at the Kloof 4 shaft.

Together, these issues and constraints have contributed to sustained losses, even at recent high gold prices, Sibanye states.

It adds that this has been compounded by significant damage caused to shaft infrastructure in late July, when an ascending counterweight to the conveyance system encountered an unknown obstruction in the shaft, resulting in a number of ballast plates falling down the shaft.

The incident occurred during a safety trial run of the conveyance system prior to hoisting employees up the shaft and no one was injured.

"Together, these factors have resulted in a severe deterioration in productivity and have jeopardised the financial viability of the Kloof 4 shaft," Sibanye says.

It notes that the possible restructuring of the Kloof 4 shaft could potentially affect 2 389 employees and 581 contractor employees.

"Through the formal consultation process, the company and affected stakeholders will, together, consider measures to avoid and mitigate possible retrenchments and seek alternatives to the potential cessation or downscaling of operations and associated services," it adds.

“We will engage with all relevant stakeholders in an effort to avoid job losses, while attempting to limit the impact on the remainder of the operations and employees at the South African gold operations,” Sibanye executive VP and head of the South African gold operations Richard Cox says.

The Kloof 4 shaft produces more than 115 000 oz of gold a year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



Magni SA
Magni SA

Magni SA is committed to developing the safest Telehandlers available to our customers for underground and surface mining, construction, forestry,...

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...


Latest Multimedia

sponsored by

Magazine video image
Magazine round up | 01 March 2024
1st March 2024
Implats CEO Nico Muller
Implats expecting phased reduction in group output
29th February 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.145 0.179s - 93pq - 2rq
Subscribe Now