THE Association of Mineworkers & Construction Union’s (AMCU’s) decision to end the five-month strike at Sibanye-Stillwater’s West Rand mines boded well for stability in the gold sector, said South African mines minister, Gwede Mantashe.
AMCU announced on April 17 that it would accept a ‘back to work’ interim offer proposed by Sibanye-Stillwater in March and ordered members to return to their posts peaceably. In terms of the ‘back to work’ agreement, striking members will be paid a one-off ‘peace and stability’ payment of R4,500, and a R5,000 salary advance.
“We must never tire to create a conducive environment for meaningful collective bargaining negotiations; coupled with working and living conditions free from the fear of violence and intimidation,” said Mantashe in a statement issued by the Department of Mineral Resources.
The agreement is a major fillip for Sibanye-Stillwater which last week took extraordinary measures to ease debt on its balance sheet by means of a R1.75bn forward gold sale and a R1.7bn share placement in the event exogenous factors, such as strike action, afflicted its operations in the long-term.
At some 104,000 ounces, Sibanye-Stillwater’s first quarter gold production was 90% of anticipated levels, but only 36% the level of production of the first quarter in the previous financial year. “Unit operating and all-in sustaining costs will be negatively impacted by the reduced production levels,” Sibanye-Stillwater said.
Sibanye-Stillwater said that post the agreement with AMCU, initial shifts at the affected mines will consist of fit-for-work medicals, training and assessing work places before mining activities can re-commence.
“We are pleased that the extended strike at our gold operations has ended, without undermining other stakeholders or compromising their rights,” said Neal Froneman, CEO of Sibanye-Stillwater who added he was hopeful the company could re-base its relationship with AMCU.
