Table of Contents
Key Points
- Sibanye-Stillwater agrees to a one-year wage deal for South African gold miners, offering 5.5% raises amid high inflation pressures.
- CEO Neal Froneman cites challenges in gold operations for the shorter wage deal, allowing flexibility amid ongoing economic uncertainties.
- The agreement follows a difficult year, with Sibanye-Stillwater reporting a $379 million loss in H1 2024 despite its global presence in precious metals.
Sibanye-Stillwater, the multinational mining giant led by South African executive Neal Froneman, has reached a one-year wage agreement with employees at its South African gold mines.
The deal, announced on Monday, concludes negotiations that began on July 1, 2024, with labor unions representing workers at the Beatrix, Driefontein, and Kloof mines.
Under the agreement, reached with the Association of Mineworkers and Construction Union (Amcu), the National Union of Mineworkers (Num), Uasa, and Solidarity, employees will receive a wage increase aimed at offsetting South Africa’s high inflation.
Category 4 to 8 employees, miners, and artisans will see a monthly raise of 5.5 percent or R900 ($50.26), whichever is greater, while officials will receive a 5.5 percent pay bump, effective until June 30, 2025.
Shorter deal reflects ongoing challenges in gold operations
CEO Neal Froneman cited continued challenges in the company's gold division as the reason for the shorter agreement. Since 2022, Sibanye-Stillwater’s South African gold operations have undergone extensive restructuring amid rising inflation and operational instability. “Given the circumstances, it is more prudent to revisit negotiations in July 2025,” Froneman stated, emphasizing the need for a flexible approach to ongoing economic uncertainties.
This agreement follows a turbulent period for Sibanye-Stillwater. In 2022, a three-month strike over pay halted production, leading to significant disruptions and wage losses for employees. That strike concluded with a three-year wage agreement and additional hardship allowances, reflecting the complex labor dynamics in South Africa’s mining sector.
Sibanye-Stillwater navigates a challenging year
The agreement comes as Sibanye-Stillwater grapples with financial headwinds. The company reported a R7.14 billion ($379 million) loss for the first half of 2024, a sharp reversal from a R7.8 billion ($427 million) profit in the same period last year. Despite this setback, Sibanye-Stillwater remains a global leader in precious metals, with a growing emphasis on battery metals and recycling.
Sibanye-Stillwater’s U.S. operations have gained momentum due to favorable regulations supporting its Montana PGM (platinum group metals) production. However, in Australia, the company faced disruptions, with operations at its Century mine paused due to a bushfire, though production is expected to resume by mid-November 2024
