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Sibanye starts Section 189 consultations at Beatrix

2nd April 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Sibanye Gold will enter into a consultation process with organised labour, the Department of Mineral Resources and relevant stakeholders in terms of Section 189A of the Labour Relations Act, to consider the options available for its struggling Beatrix mine.

This followed the breakout of a fire in the Beatrix West Section, in February, which resulted in the loss of some 61 kg of gold a month, equating to a loss of about R28-million in revenue a month, with current indications that the area would be inaccessible until at least the end of June. 

“The location of the underground fire has prevented critical ore reserve development from taking place, impacting on the sustainability of the Beatrix West Section and, hence, the long-term future of the operation,” the company said on Tuesday.

Sibanye noted that the Beatrix West Section, previously the Oryx mine, cost R2.6-billion to develop, but had always been marginal and was not able to recover the initial capital spent.

Several initiatives to arrest the production decline and rising costs were implemented by Gold Fields and the Beatrix West Section was kept operational in the hope that the situation would improve.

Sibanye believed that, based on a review of the Beatrix West Section, it was clear that the situation needed to be dealt with and corrective measures considered in consultation with stakeholders.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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