During its annual general meeting held online on Tuesday, Sibanye-Stillwater announced measures aimed at securing yearly savings and deferring capital expenditure totaling R6.6 billion. These steps are intended to address the company’s loss-making assets, according to Dr. Vincent Maphai, the chairperson of the platinum group metals major.
Operating in both Johannesburg and New York, Sibanye-Stillwater is focused on reducing operating and capital costs while improving efficiency, as explained by Maphai. Despite expecting a prolonged period of low market prices, the company maintains a positive outlook for the metals it produces. This reflects a net debt-to-earnings ratio of 0.58 at the end of 2023, with a workforce of over 82,000.
“We’ll augment our existing business and deliver tangible value to our stakeholders,” Maphai added, underscoring the company’s strategic objectives.
During discussions, Sibanye-Stillwater CEO Neal Froneman addressed concerns about potential job cuts and the steps being taken to minimize their impact in South Africa’s challenging job market. Froneman highlighted the company’s proactive measures to ensure sustainability as some mine shafts near the end of their operational lives.
“We have little control over prices and are reliant on our workforce to manage costs,” Froneman explained. He outlined that the current restructuring efforts mainly involve adjusting senior management levels to align with production realities, while ensuring compliance with the Labour Relations Act and the Section 189 process aimed at minimizing job losses.
Looking ahead to 2025/26, Sibanye-Stillwater aims to meet almost a third of its energy needs through renewable sources, reducing pressure on the power grid and supporting national efforts to tackle power cuts. This initiative is expected to lower costs and reduce the company’s carbon footprint.
Froneman highlighted the company’s progress in combating illegal mining and reducing copper cable theft risks, a testament to its strong relationships with mining communities, government bodies, and regulatory agencies.
Jerry Vilakazi, the outgoing chairperson for social, ethics, and sustainability, noted the company’s commitment to environmental, social, and governance (ESG) standards across its operations, mentioning that there have been no significant ESG-related fines.
Sibanye-Stillwater remains a leading global producer of platinum, palladium, and rhodium, in addition to refining a variety of other minerals and expanding its investments into battery metals and the circular economy through enhanced recycling and tailings reprocessing efforts.
Source: Mining Weekly
