JOHANNESBURG (miningweekly.com) – The implementation of an agreement emerging from a Section 189 process at Cooke 4 to bring the operation back to sustainability had been completed, dual-listed Sibanye Gold said on Monday.

The group, which had been locked in a Commission for Conciliation, Mediation and Arbitration-facilitated Section 189 consultation process from September to November, agreed to embark on certain measures that would return the shaft to a sustainable profit with the lowest impact on jobs.

Sibanye instituted an alternative work cycle at Cooke 4, resulting in an additional 22 working shifts a year, with the mine working six days a week, as opposed to the existing 11-shift fortnight arrangement.

An additional 213 jobs were saved owing to the additional employees required to accommodate the extra shifts.

It was also agreed that operations would continue to operate over four of the statutory public holidays.

“The forecast net impact of implementing the alternative work cycle, is to increase profitability at Cooke 4 by about R40-million to R50-million a year, assuming a gold price range of between R415 000/kg and R470 000/kg,” said Sibanye CEO Neal Froneman.

Through voluntary separation packages and voluntary early retirement, the employee complement at Cooke 4 was cut by 392, which equated to 16% of the 2 403 employees, and staff at the Ezulwini plant was reduced by 38, also representing 16% of the workforce at the plant.

Management structures were rationalised, while vacancies were filled at other group operations and contractors displaced where possible by Cooke 4 workers.

Further, a moratorium was placed on strike action in support of wage increases in 2015, in addition to external recruitment for the operations.

“The outcome of these retrenchment avoidance measures being implemented is that from a possible 1 776 employees at risk at the Cooke 4 mine, no forced retrenchments were implemented,” the company said in a statement.