Sibanye-Stillwater, a South African diversified mining group led by leading businessman Neal Froneman, has revealed plans to restart operations at its gold mines in South Africa three months after a miners’ strike halted operations.
The news comes after the group signed a three-year wage agreement with members of the National Union of Mineworkers (NUM) and the Association of Mine Workers and Construction Union. Collectively, the organizations account for the preponderant majority of its gold operations as part of a move to restart operations at its gold mines and end a three-month strike.
“We look forward to resuming our South African gold operations for the benefit of all stakeholders,” Sibanye CEO Neal Froneman said in a statement. “We are pleased to have reached an agreement that is in line with inflation and will significantly contribute to the long-term viability of our gold operations.”
The three-year wage agreement was reached at the end of the three-month standoff and will see general employees receive an increase of R1,000 ($62.2) per month in the first year, R900 ($56) in the second year, and R750 ($46.65) in the third year.
Meanwhile, artisans and other skilled workers will receive a five-percent raise in the first year, with subsequent increases tied to inflation.
In addition, miners, artisans, and officials will be eligible for the R3,000 ($186.6) once-off hardship allowance proposed by the Commission for Conciliation, Mediation, and Arbitration (CCMA), which is available to employees in categories four to eight.
The hardship allowance, according to the mining company, consists of a guaranteed R1,200 ($74.47) cash payment with a balance of up to R1,800 ($111.71) assigned to the reduction of employee debt or loans incurred by the company in ensuring that other medical aid contributions and risk benefits were covered during the lockout.
Shares in Sibanye Stillwater, the world’s largest primary producer of platinum and second-largest primary producer of palladium, were trading at R44.91 ($2.79) as of press time on June 13, 53 basis points lower than its opening price on the Johannesburg Stock Exchange this morning.
The market capitalization of the leading mining group is presently valued at R128 billion ($7.96 billion), while Froneman’s 0.074-percent stake is valued at R95 million ($5.9 million).
