Sibanye-Stillwater review

Miner set to undergo organisational review that would affect its management structure

SIBANYE-STILLWATER is set to undergo an organisational review that would affect its management structure after the Competition Tribunal last week gave the group’s multibillion-rand takeover of platinum producer Lonmin the green light.

Sibanye-Stillwater chief executive Neal Froneman said the new structure would involve the reconfiguration of its management teams to focus on the gold and platinum group metals (PGM) divisions.

Froneman said the restructuring formed part of Sibanye’s strategy to ensure the successful integration of Lonmin into the group. He said this would however not mean Sibanye would neglect its gold operations.

The tribunal last week approved the acquisition subject to a moratorium on retrenchments at the Lonmin operations for six months. However, the conditions excluded any voluntary separation agreements and ordinary course of business terminations.

Froneman said he believed the conditions were reasonable and in the best interests of all stakeholders.

“We are confident that the integration of Lonmin’s PGM assets and Sibanye-Stillwater’s adjacent PGM operations, will ensure a more sustainable and positive future for these assets and bring greater stability to the region,” Froneman said.

Last year, Sibanye said it would cut 12 600 jobs over the next three years as reserves at its older shafts were running out. The world’s third platinum producer said it had not been able to invest in new projects which would have absorbed the employees.

Froneman said a further 890 jobs would be lost following the merger.