Wage negotiation update
Westonaria, 2 October 2015: Sibanye (JSE: SGL & NYSE: SBGL) advises shareholders that the National Union of Mineworkers (NUM), Solidarity and UASA have accepted the offers made by fellow gold producers AngloGold Ashanti and Harmony. The Association of Mineworkers and Construction Union (AMCU) has unfortunately rejected all of the companies’ offers and obtained a certificate of non-resolution from the CCMA.
The offer made by Sibanye to the unions was conditional on all four unions accepting the offer and as a result of AMCU’s rejection of the offers, Sibanye has not yet signed the agreements with the other three unions.
Sibanye recognizes all representative unions equally as important stakeholders and in order to ensure the sustainability of its operations and preserve a harmonious working environment, the company has committed to continued engagement with all the unions until there is common agreement.
Commenting on the recent developments, Neal Froneman, CEO of Sibanye said; “It was pleasing to note the acceptance of the wage agreements by the NUM, UASA and Solidarity. These unions have acted in the interest of their members to protect jobs and at the same time considered the sustainable future of the industry. It was however disappointing that AMCU chose to reject all of the offers. Feedback from Sibanye employees suggests that the majority of employees, including AMCU members, are in favour of accepting the current offer and the company will continue to engage with AMCU in order to reach an agreement”.
“The offer is fair and will ensure that our future is secured and that jobs are protected and we will not be adjusting or increasing this offer” Froneman concluded.
James Wellsted SVP Investor Relations Sibanye Gold Limited +27 83 453 4014 email@example.com
J.P. Morgan Equities South Africa Proprietary Ltd
FORWARD LOOKING STATEMENTS
Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.
These forward-looking statements, including, among others, those relating to Sibanye’s future business prospects, revenues and income, wherever they may occur in this document and the exhibits to this document, are necessarily estimates reflecting the best judgment of the senior management of Sibanye and involve a number of known and unknown risks and uncertainties that could cause actual results, performance or achievements of the Group to differ materially from those suggested by the forward-looking statements. As a consequence, these forward looking statements should be considered in light of various important factors, including those set forth in this document. Important factors that could cause the actual results to differ materially from estimates or projections contained in the forward looking statements include without limitation: economic, business, political and social conditions in South Africa and elsewhere; changes in assumptions underlying Sibanye’s estimation of its current mineral reserves and resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions as well as existing operations; the success of exploration and development activities; changes in the market price of gold and/or uranium; the occurrence of hazards associated with underground and surface gold and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations and new legislation affecting water, mining and mineral rights; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health and safety issues; power disruptions and cost increases; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic factors; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance reasons; Sibanye’s ability to hire and retain senior management or sufficient technically skilled employees, as well as its ability to attract sufficient historically disadvantaged South Africans representation in its management positions; failure of Sibanye’s information technology and communications systems; the adequacy of Sibanye’s insurance coverage; any social unrest, sickness or natural or man-made disaster at informal settlements in the vicinity of some of Sibanye’s operations; and the impact of HIV, tuberculosis and other contagious diseases. These forward looking statements speak only as of the date of this document.
The Group 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 document or to reflect the occurrence of unanticipated events.