SIBANYE Gold could retrench about 330 employees at its platinum operations in terms of a proposal to extract R800m in operational synergies between properties which it bought for an initial R8.5bn last year.
The gold and platinum group bought Aquarius Platinum, which operates Kroondal Platinum Mine, and Rustenburg Platinum Mines last year on the basis that it could operate them better based almost solely the synergies between the mines. Consequently, the firm announced today it had entered into a consultation process at its platinum operations in terms of Section 189A of the Labour Relations Act which allows it to restructure.
Sibanye said the number of employees that could be retrenched was “well within the scope” of the Competition Tribunal’s ruling which had concluded at the time of approving the acquisitions last year that there might be about 510 excess positions.
Said Sibanye: “In 2016, Sibanye highlighted approximately R800m in cost and operational synergies that need to be realised between the Kroondal and Rustenburg operations to ensure sustainability”.
“The reduction in replicated overhead costs and duplicate structures is a critical first step in realising these synergies,” it added. Sibanye said last year that it hoped to save about R200m by removing duplications among job positions. The balance of the savings would be through more efficient mining by accessing certain areas from other shafts as well as using mine capacity better.
A final decision would be taken following consultation with organised labour representatives and relevant employees, it said.
