Bloomberg reports that Sibanye Gold is considering shutting unprofitable shafts and cutting jobs at its South African gold mines amid a three-month-old wage strike that’s curbing output.
Sibanye spokesman James Wellsted confirmed that the precious metals producer has talked with some of its trade unions about a potential restructuring, which could lead to job cuts. Rising costs, including higher power prices, were undermining the economic viability of its gold operations, he stated. “There is a possibility that if we don’t find solutions that there may be restructuring, which entails closing some of the operations and possible job cuts. We can’t carry on unprofitable shafts as it means we are taking money from one area and pouring it down the drain,” Wellsted indicated. The company has informed the Department of Mineral Resources about the possibility of restructuring, a prerequisite before cutting jobs. At three of the company’s gold mines, thousands of workers allied to the Association of Mineworkers and Construction Union (Amcu) have been on strike for thirteen weeks over wages. Sibanye CEO Neal Froneman said earlier this month that he would not increase the wage offer to Amcu after three other unions signed a pay deal with the miner.
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