Sibanye Gold enters into section 189 consultation process regarding possible restructuring of its support services functions
Westonaria, 15 August 2013: Sibanye Gold Limited (JSE: SGL & NYSE: SBGL) has today issued Section 189 notices, in terms of the Labour Relations Act, to employees in the Group’s support services functions.
The reorganisation of the Group’s support services is necessary in order to align with the service requirements of the mining and metallurgical operating units, and contribute to a sustainable production profile.
Sibanye Gold has undertaken a thorough review of its entire business in order to extend the productive lives of its operations and ensure sustainability. Merging regional, corporate and mine support services into a consolidated, centralised function will realise economies of scale that will improve efficiencies and reduce the cost of the services provided.
“Through this proposed restructuring, we see significant potential for increasing economically recoverable reserves, by reducing overhead costs and improving operational efficiency. This will allow current production levels to be sustained well into the future,” explains CEO, Neal Froneman.
The proposed restructuring could result in up to 1,600 jobs being affected. Sibanye Gold is committed to a transparent process of consultation with organised labour and employees to explore all available options.
Contact
James Wellsted
Head of Corporate Affairs Sibanye Gold Limited
+27 83 453 4014
