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SIBANYE GOLD LIMITED - Sibanye-Stillwater commits to restoring and improving on safety at its operations

Release Date: 20/06/2018 11:11
Code(s): SGL     PDF:  
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Sibanye-Stillwater commits to restoring and improving on safety at its operations

Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)

Sibanye-Stillwater commits to restoring and improving on safety at its operations

Johannesburg, 20 June 2018. Further to the announcement released on Thursday 14 June
2018 advising of the tragic loss of five employees who passed away after entering
an area at its Kloof Ikamva mine that is not currently mined, on Monday 11 June
2018, Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) wishes to provide an
update on safety at its operations.

Sibanye-Stillwater has recently experienced a significant increase in safety
incidents at its Southern Africa (SA) operations, with 20 employees losing their
lives in nine incidents since February 2018. This substantial regression in safety,
is unacceptable.

Commenting on the safety incidents, CEO Neal Froneman voiced the following: “One
life lost is one too many. We are appalled by the loss of our employees’ lives at
our mines over the past few months. It pains all of us when employees are injured
or lose their lives in safety incidents.. While we cannot rectify the harm that has
occurred, we will continue to support the families as best we can in their grief.
The safety of employees is our primary concern and, if it is not safe to operate,
we expect conditions to be fixed before work can resume at a working place. There
is substantial evidence that well-organised workplaces are both safe and productive,
and that is our aim.”

Sibanye-Stillwater’s safety record
After an extensive roll out of a fully revised safety strategy in 2017, there was a
significant improvement in all safety indicators during the course of the year. Over
a period of over four months until early February 2018, 3.8 million shifts were
worked in our gold operations without loss of life, with the Group maintaining a
leading safety performance. In addition, a culture transformation programme is in
the process of being implemented at our mines, with the objective to influence
attitudes to safety, promote compliance with safe work practices and instil a culture
of effective risk management at our mines

The recent spate of fatalities in a short period of time is unparalleled in Sibanye-
Stillwater’s history. While more than half of the fatalities (12 of the 20 deaths
experienced this year) are the result of two specific incidents which were unrelated
and very different in nature, the number and frequency of recent events is of grave
concern.

As previously discussed at our SA PGM investor day on 7 June 2018
(https://www.sibanyestillwater.com/investors/events/pgm-day), the seismic incident
which caused the tragedy at Driefontein on 3 May 2018, was primarily technical.
There was no preliminary evidence that our operational controls had failed and, as
we have previously stated, our deep level mine designs, layouts and safety procedures
are generally adequate to cater for seismic related circumstances. Should there be
a need to re-evaluate any of these to accommodate additional learning and enhance
scientific understanding following the investigation by the DMR, these will be
implemented.
A thorough investigation will be undertaken by management, the Department of Mineral
Resources (DMR) and other stakeholders, as per regulatory convention, to determine
the cause of the incident and we will ensure that any remedial actions that may
result from the investigation will be implemented in order to prevent similar
incidents in future.

A memorial service has been scheduled for Wednesday, 20 June 2018 at 14:00, followed
by a day of safety on Thursday, 21 June 2018. Operations at Ikamva mine will only
resume once all work places at Ikamva Mine have been audited to ensure there are no
substandard conditions.

Condolences
The Board and management of Sibanye-Stillwater once again wish to extend their
sincere condolences to the families, friends and colleagues of the deceased employees
and all others impacted by this tragic event.

The families of all five deceased employees have been receiving necessary support
and counselling, and Sibanye-Stillwater will continue to support the families of the
deceased colleagues financially and emotionally, with counselling, housing,
education support and other benefits provided to assist them.

Employee’s right to a safe work environment is non-negotiable
Sibanye-Stillwater does not condone anyone being forced to work if it is unsafe or
employees being disciplined if they exercise their right to withdraw when conditions
are not safe. We support and promote adherence to Section 23 of the Mine Health and
Safety Act, and have numerous safety programmes which inform employees, supervisors
and managers about the right to withdraw from an unsafe work place and how to apply
Section 23 responsibly. We have also instituted a programme to promote the behaviour
change required so that the right to withdraw becomes an integral part of our
workplace culture.

There is a formal grievance procedure and an anonymous tip-offs system in place that
any employee can use if they are given an unlawful instruction or are victimised.
Any supervisor who has been found to force workers to work in unsafe conditions is
liable to disciplinary action.

We would like to encourage employees and stakeholders to provide us with more
information, should they be aware of any intimidation which prevents employees from
exercising their right in terms of Section 23. During the Masakhane and Ikamva safety
incidents, allegations were made that employees were forced to work in unsafe
conditions, although no evidence or tip-off has been provided to substantiate this.

Our commitment to improved safety
It is necessary for all stakeholders to work together, to support and enable the
achievement of zero harm in the workplace.  As such Sibanye-Stillwater first called
for a safety summit in February 2018 to further improve on safety performance and
enhance the behavioural intervention that had been launched.. A safety summit was
held with all key mining stakeholders on 25 May 2018, and we are optimistic that
this will be the start of working towards a common goal of reducing work related
fatal accidents and injuries in the mining industry.       The joint safety pledge
demonstrates shared commitment to a collaborative approach, with further inclusive
summits planned to secure greater definition around implementation modalities. For
more   information   refer   to   www.sibanyestillwater.com/investors/news/company-
announcements/2018 for the release issued on 4 June 2018.

To support the quest for improved safety, we are funding an independent study being
conducted by a leading visiting academic at the University of the Witwatersrand with
the aim of developing practical recommendations for enhancing risk management
effectiveness at our operations. This work, which forms part of a wider study on
the origins and impact of the MHSA, will be performed through the Centre for
Sustainability in Mining and Industry.      We are also pleased to announce the
appointment of Dr Kobus de Jager as Corporate Head of Safety with a primary remit
to review and enhance the company’s safety management. Dr de Jager, who holds a
visiting adjunct professorship at the University of the Witwatersrand, has over 40
years’ experience in mine safety with academic and practical credentials in
leadership and behavioural safety. In addition the sponsorship and recent launch
of DigiMine as a collaborative partnership with the University of the Witwatersrand
is expected to complement these initiatives through provision of technology to
improve safety and operating effectiveness. (refer to Wits University release on 28
March     2018     at     https://www.sibanyestillwater.com/investors/news/company-
announcements/2018)

CEO Neal Froneman concludes by saying, ”Resolving our recent safety challenges is
our most critical imperative. We cannot accept that lives are lost in extracting
minerals from the earth, and we will leave no stone unturned in restoring a safety
performance that meets our expectations.    Mining at Sibanye-Stillwater can, and
must, continue to provide economic activity to a substantial part of South Africa’s
population without causing unacceptable harm.”


Contacts:
Email: ir@sibanyestillwater.com

Thabisile Phumo
Head of Stakeholder engagement: SA region
+27 (0) 83 455 8106
or
James Wellsted
Head of Investor Relations
+27 (0) 83 453 4014


Sponsor: J.P. Morgan Equities South Africa (Proprietary) Limited



FORWARD LOOKING STATEMENTS
This   announcement   contains   forward-looking   statements,    including   “forward-looking
statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and the
“safe harbour” provisions of the United States Private Securities Litigation Reform Act of
1995. Forward-looking statements may be identified by the use of words such as “target”,
“will”, “would”, “expect”, “can”, “unlikely”, “could” and other similar expressions that
predict or indicate future events or trends or that are not statements of historical matters.
These forward-looking statements, including among others, those relating to our future
business prospects, financial positions, debt position and our ability to reduce debt
leverage, plans and objectives of management for future operations, plans to raise capital
through streaming arrangements or pipeline financing, our ability to service our Bond
Instruments (High Yield Bonds and Convertible Bonds), our ability to achieve steady state
production at the Blitz project and the anticipated benefits and synergies of our acquisitions
are necessarily estimates reflecting the best judgement of our senior management and involve
a number of known and unknown risks, uncertainties and other factors, many of which are
difficult to predict and generally beyond the control of Sibanye-Stillwater, that could cause
Sibanye-Stillwater’s actual results and outcomes to be materially different from historical
results or from any future results expressed or implied by such forward-looking statements.
As a consequence, these forward-looking statements should be considered in light of various
important factors, including those set forth in the Group’s Annual Integrated Report and
Annual Financial Report, published on 30 March 2018, and the Group’s Annual Report on Form
20-F filed by Sibanye-Stillwater with the Securities and Exchange Commission on 2 April 2018
(SEC File no. 001-35785). These forward-looking statements speak only as of the date of this
announcement. Sibanye-Stillwater 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 announcement or to reflect the occurrence of unanticipated events, save as
required by applicable law.

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