Sibanye-Stillwater Averts Closure of Rustenburg, Aquarius Operations

By Oliver Griffin

Sibanye-Stillwater Ltd. (SBGL) said Monday that it has prevented the closure of its Rustenburg and Aquarius platinum mining operations by successfully integrating them into its group structure.

Sibanye-Stillwater had previously warned that 200,000 to 300,000 ounces-worth of platinum production a year could be at risk as it evaluated the profitability of conventional platinum shafts in South Africa.

The company said that since both Rustenburg and Aquarius generated substantial returns upon integration, it wouldn't have to halt their operation.

Sibanye-Stillwater said that its South Africa platinum businesses delivered solid operational results in the first half, prompting an upward revision of its 2017 production forecast.

It added that cost-saving measures have exceeded expectations. The company had originally aimed to book approximately 1 billion rand ($75.3 million) in cost savings over a three-year period, but now expects to achieve that target by the end of this year.

Chief Executive Neal Froneman said the operational restructuring had saved "many thousands" of jobs.

Write to Oliver Griffin at [e-mail]

(END) Dow Jones Newswires

October 16, 2017 09:17 ET (13:17 GMT)

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