Sibanye tackles safety challenges

Bullion and platinum producer Sibanye Gold is refocusing on safety after a spike in fatalities.

Johannesburg - South African-focused bullion and platinum producer Sibanye Gold posted a six-fold surge in interim earnings on Thursday on a sharply higher rand-gold price and said it was refocusing on safety after a spike in fatalities.

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“Regrettably there has been a regression in the Gold Division's safety performance, with eight fatalities during the first six months of this year,” compared with four in that period last year, the company said in a statement.

The company said it had appointed veteran executive Peter Turner to head up safety for the group.

“Sibanye management has taken urgent steps to address this regression in safety... Immediate safety challenges will be addressed through stringent enforcement of standards and compliance in the short term,” it said.

Safety has been back in the spotlight in South Africa, home to the world's deepest mines, after an increase in fatalities across the industry this year after the death toll had fallen for seven consecutive years.

Companies including Sibanye have also complained in recent months that the department of mineral resources was applying unnecessary safety stops to address the issue, impacting production.

But the department on Tuesday said health and safety issues were “non negotiable”.

Sibanye's interim headline earnings per share leapt to 121 cents from 19 cents last year, in line with what it had flagged to the market. Group revenue rose 44 percent to R14.7 billion ($1.0 billion).

“This was largely a function of the depreciation of the rand against the US dollar in late 2015, with the average (rand) gold price increasing by 31 percent,” the company said.

REUTERS