SIBANYE GOLD LIMITED - Sibanye Gold enters into further Section 189 consultations on the future of the Cooke 4 Operation

Sibanye Gold enters into further Section 189 consultations on the future of the Cooke 4 Operation

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”)

SIBANYE GOLD ENTERS INTO FURTHER SECTION 189 CONSULTATIONS ON THE
FUTURE OF THE COOKE 4 OPERATION

Westonaria 11 July 2016: Sibanye Gold (JSE: SGL & NYSE: SBGL)
notifies shareholders that it will be entering into a further
consultation process with organised labour and other relevant
stakeholders, regarding continued operational underperformance and
accumulating financial losses at the Cooke 4 underground mine and
Ezulwini Gold and Uranium processing plant (the Cooke 4 Operation).

Sibanye acquired the Cooke underground and surface assets from Gold
One Limited, in May 2014. The primary reason for the acquisition was
the significant uranium and gold mineral resources and reserves
contained in the Cooke surface tailings facilities, which form a
critical component of Sibanye’s West Rand Tailings Retreatment
Project (“WRTRP”). Along with these surface resources, Sibanye
acquired four operating underground mines and two processing plants,
which included the Cooke 4 assets.

In September 2014, due to historical operational underperformance,
Sibanye entered into a period of consultation with relevant
stakeholders which, in November 2014, resulted in the stakeholders
agreeing to implement specific measures to return the operation to
profitability and thereby minimise job losses. Despite intense
monitoring and interventions by a joint management and labour
committee over the last 17 months since the previous Section 189
consultation was concluded, the Cooke 4 Operations have continued to
fall short of production targets and losses have continued to
accumulate.

In view of the sustained losses at the Cooke 4 Operation and
considering the extensive efforts to improve productivity and reduce
the operation’s cost structures, Sibanye has given notice in terms
of Section 189A of the Labour Relations Act 66 of 1995 ("LRA"). A 60
day period of consultation will now be entered into with trade
unions and affected employees, facilitated by the CCMA. During this
period all options and alternatives to closure will be considered.

“It is unfortunate that, despite the joint efforts of stakeholders,
the Cooke 4 Operations have been unable to meet required production
and cost targets and has continued to operate at a loss. Ongoing
financial losses threaten the viability of the rest of the Cooke
operations and we have regrettably had to give notice to affected
stakeholders and begin the consultation process,” said Wayne
Robinson, CEO of Sibanye’s Gold Division. “We remain positive about
the future of the Cooke 1, 2 and 3 mines and the outlook for the
WRTRP project is extremely promising”, Robinson concluded.
ENDS


Contact

James Wellsted
Head of Investor Relations
Sibanye Gold Limited
+27 83 453 4014
james.wellsted@sibanyegold.co.za

Sponsor

Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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