Wrap Text
Favourable outcome to Cooke 4 Section 189 Process
Sibanye Gold Limited
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye” or “the Company”)
FAVOURABLE OUTCOME TO COOKE 4 SECTION 189 PROCESS
.
Westonaria, 2 February 2015: Sibanye Gold Limited (JSE: SGL & NYSE: SBGL) wishes to
advise that the company has successfully completed the Cooke 4 Section 189
consultation process and that an agreement was reached with employees and
organised labour on 12 November 2014.
This agreement followed the Section 189 consultation process, facilitated by the
Commission for Conciliation, Mediation and Arbitration (“CCMA”), which began on
12 September 2014. Section 189 of the Labour Relations Act prescribes a joint
consensus seeking process in an attempt to inter alia; reach consensus on
implementing appropriate measures to minimise the number of job losses.
The agreed upon measures required to return the shaft to a sustainable profit
included:
1. an alternative work cycle at Cooke 4, which was implemented on 24
November 2014;
2. a reduction of 392 employees in the Cooke 4 mining employee complement
(approximately 16% of a total of 2,403 employees);
3. a reduction of 38 employees at the Ezulwini Plant (approximately 16% of a
total of 238 employees);
4. rationalisation of management structures at the Cooke operations;
5. a moratorium on strike action in support of wage increases in 2015;
6. a moratorium on external recruitment for the Cooke Operations;
7. minimising the use of contractors; and
8. ongoing monitoring in order to ensure successful implementation..
The outcome of these retrenchment avoidance measures being implemented is
that from a possible 1,776 employees at risk at the Cooke 4 mine, no forced
retrenchments were implemented. The required reduction in the employee
complement was primarily achieved through voluntary separation packages and
voluntary early retirement. In order to minimise job losses, vacancies were filled at
other Group operations and contractors were displaced where possible, and those
positions were filled with affected employees from Cooke 4.
The alternative work cycle will result in better utilisation of the Cooke 4 asset as the
mine will be worked Monday to Saturday (six days a week) every week as opposed
to the existing shift 11 shift fortnight arrangement (eleven shifts over fourteen days).
The net result of the implementation of the alternative work cycle will be an
additional 22 working shifts per annum. Importantly, an additional 213 jobs were
saved due to additional employees required to accommodate the extra shifts. It
was also agreed that operations would continue to operate over four of the
statutory public holidays. The forecast net impact of implementing the alternative
work cycle, is to increase profitability at Cooke 4 by approximately R40million-R50
million per annum (assuming a gold price range of between R415,000/kg and
R470,000/kg).
Neal Froneman, CEO of Sibanye Gold, commenting on the outcome of the process
said: “I am very pleased that we have again, with the co-operation of our
employees and organised labour, managed to arrive at a mutually agreeable
outcome. The measures we agreed on have been implemented at the Cooke 4
mine and I am confident that the Cooke 4 business unit is suitably positioned to
achieve the required productivity and profitability levels, which will ensure
operational sustainability”.
ENDS
Contact
James Wellsted
SVP Investor Relations
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za
Sponsor: J.P. Morgan Equities South Africa (Proprietary) Ltd
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute “forward looking statements” within
the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the
US Securities Exchange Act of 1934.
These forward-looking statements, including, among others, those relating to
Sibanye’s future business prospects, revenues and income, wherever they may
occur in this document and the exhibits to this document, are necessarily estimates
reflecting the best judgment of the senior management of Sibanye and involve a
number of known and unknown risks and uncertainties that could cause actual
results, performance or achievements of the Group to differ materially from those
suggested by the forward-looking statements. As a consequence, these forward
looking statements should be considered in light of various important factors,
including those set forth in this document. Important factors that could cause the
actual results to differ materially from estimates or projections contained in the
forward looking statements include without limitation: economic, business, political
and social conditions in South Africa and elsewhere; changes in assumptions
underlying Sibanye’s estimation of its current mineral reserves and resources; the
ability to achieve anticipated efficiencies and other cost savings in connection with
past and future acquisitions as well as existing operations; the success of exploration
and development activities; changes in the market price of gold and/or uranium;
the occurrence of hazards associated with underground and surface gold and
uranium mining; the occurrence of labour disruptions and industrial action; the
availability, terms and deployment of capital or credit; changes in government
regulations, particularly environmental regulations and new legislation affecting
water, mining and mineral rights; the outcome and consequence of any potential or
pending litigation or regulatory proceedings or other environmental, health and
safety issues; power disruptions and cost increases; fluctuations in exchange rates,
currency devaluations, inflation and other macro-economic factors; the occurrence
of temporary stoppages of mines for safety incidents and unplanned maintenance
reasons; Sibanye’s ability to hire and retain senior management or sufficient
technically skilled employees, as well as its ability to attract sufficient historically
disadvantaged South Africans representation in its management positions; failure of
Sibanye’s information technology and communications systems; the adequacy of
Sibanye’s insurance coverage; any social unrest, sickness or natural or man-made
disaster at informal settlements in the vicinity of some of Sibanye’s operations; and
the impact of HIV, tuberculosis and other contagious diseases. These forward looking
statements speak only as of the date of this document.
The Group undertakes no obligation to update publicly or release any revisions to
these forward looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events.
Date: 02/02/2015 03:39:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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