O U R M I N I N G I M P R O V E S L I V E S
INTEGRATED
ANNUAL REPORT
2018
INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE
ANCILLARY INFORMATION
41%* 84% 10% 67%
Combined contribution by our PGM
operations to adjusted EBITDA
Growth in revenue
Decline in level 3 and higher
environmental incidents
Improvement in
safety in the second half of the
year, relative to first half regression
• Committed approach to safety –
zero harm goal – that is holistic
and values-driven
• Benefits of strategic commodity
and geographic diversification
clearly evident
• Solid contribution from PGM
operations offsets under-
performance at SA gold operations
• Established the Global Safe
Production Advisory Panel of
leading academics
• Significant improvement in H2
continues in 2019 – 7 million
fatality-free shifts achieved
by Group
* Fatal injury frequency rate
• 50% contribution from the US
PGM operations – up from 24%
in 2017 – given their inclusion for
the full year
• Substantial increase in SA PGM
operations’ contribution to 34%
owing to improved rand PGM
basket price and solid performance
• Declined to six in 2018 from
18 in 2017
• A result of improved
environmental management
Our full set of 2018 reports,
produced for the financial year from
1 January 2018 to 31 December 2018,
covers Sibanye-Stillwater’s progress
and achievements in delivering on our
strategic objectives and commitment
to creating stakeholder value. This
integrated report should be read in
conjunction with:
MINERAL RESOURCES
AND MINERAL RESERVES
REPORT 2018
SUMMARISED REPORT
AND NOTICE OF ANNUAL
GENERAL MEETING 2018
ANNUAL FINANCIAL
REPORT 2018
COMPANY FINANCIAL
STATEMENTS 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATIONSALIENT POINTS2018 INTRODUCTION
Statement of accountability and commitment
About this report
Corporate profile
Our strategy
3
3
4
8
How we create value – our business model
10
Five-year statistical review 12
section
01
section
02
VIEW FROM THE TOP
21 Perspective from the Chair
24 Chief Executive Officer’s review
33 Chief Financial Officer’s report
40 Managing our risks and opportunities
section
56 Stakeholder engagement
PERFORMANCE REVIEW
How we performed 62
03
Delivering value from operations, projects and technology 63
Mineral Resources and Mineral Reserves – summary 75
Superior value for the workforce 86
Ensuring safe production 102
section
Occupational health and well-being 112
Social upliftment and community development 122
Minimising the environmental impact 130
ANCILLARY INFORMATION
Statement of assurance 207
Shareholder information 210
Disclaimer and forward-looking statements 212
Administrative and corporate information 213
GOVERNANCE
153 Corporate governance and leadership
176 Remuneration report
04
section
05
Sibanye-Stillwater Integrated Report 2018 1
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATIONcontents INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE
ANCILLARY INFORMATION
01
We introduce
Sibanye-Stillwater,
explaining who we are,
what we do, the context
in which we operate,
our aims and the
stakeholders with whom
we engage
3 About this report
3 Statement of accountability
and commitment
4 Corporate profile
8 Our strategy
10 How we create value – our business model
12 Five-year statistical review
Sibanye-Stillwater Integrated Report 2018
2
2
Sibanye-Stillwater Integrated Report 2018
sectionintroduction ABOUT THIS REPORT
APPROACH AND
PHILOSOPHY
This integrated report, our primary report to
stakeholders, adopts an integrated approach
to describing the operational, financial and
sustainability performance (see Five-year statistical
review) and activities of Sibanye Gold Limited
(trading as Sibanye-Stillwater), for the period from
1 January 2018 to 31 December 2018.
This report is intended to assist stakeholders to
make informed decisions on Sibanye-Stillwater’s
ability to create sustained value in the long term. It
provides insight into our strategy, our business and
performance, and the progress made in delivering
on our strategic objectives and our commitment
to creating stakeholder value over the past year.
We report on those matters we consider to be
most material to Sibanye-Stillwater’s sustainability,
operational, financial and strategic performance.
Underlying this is our commitment to ensuring that our
decisions are made according to, and underpinned by,
our CARES values.
This integrated report complies with the
International Integrated Reporting Council’s
framework on integrated reporting, the King IV
Report on Corporate Governance for South Africa,
2016 (King IV), and the South African Companies
Act 71 of 2008 (as amended).
In compiling this report we have aligned with the
Global Reporting Initiative (GRI) Standards
and have taken into account the International
Council on Mining and Metals (ICMM) guiding
principles as well as the 10 Principles of the United
Nations Global Compact. The report on our disclosure
in terms of the GRI Standards is available at
www.sibanyestillwater.com, together with the
complete list of frameworks, guidelines and
requirements which have been applied in compiling
this report.
In this report, we attempt to provide stakeholders
with relevant information that would enable an
assessment of the way our mining activities in
2018 created value, improved lives and achieved
other strategic objectives. In so doing, we give an
account of challenges encountered and successes
achieved, the impact of our activities, and of those
factors and risks, both in the external environment
and internally, that have had an impact on our
ability to achieve our strategic objectives and to
create superior value in the past year. The process to
determine the most material of these risks, together
with identifying our opportunities, is described in
Managing our risks and opportunities.
In addition, a Form 20-F is filed with the United
States SEC. In producing this suite of reports and
the Form 20-F for 2018, Sibanye-Stillwater has
complied with the listings requirements of the
exchanges on which we are listed, namely the
Johannesburg Stock Exchange (JSE) and the New
York Stock Exchange (NYSE).
SCOPE AND BOUNDARY
The scope and boundary of this report take into
account the Group’s organisational structure
(see Corporate profile) implemented to enhance
and ensure delivery on our strategic operating
objectives. Annual comparative data is provided
where applicable. For the 2018 financial year, annual
data is provided where possible by region, type of
operation and at group level. Note that the annual
data provided at group-level for 2014 and 2015 in
this report is comparable to that for the South Africa
(SA) gold operations for 2016-2018. Where data for
previous years has been restated, this is indicated.
Any material events occurring post year-end and
before the date of approval by the Board are reported
in this report.
AUDIENCE
While the principal audience for this report is
investors and shareholders, we recognise that
there are other stakeholders who have varied and
specific information requirements, many of which
we address, despite not producing a separate
sustainable development report. Instead all
non-financial reporting is either included in this
integrated report or is available on the website,
where referenced.
This report is intended to enable stakeholders to
determine whether the material issues identified
will affect the sustainability of Sibanye-Stillwater’s
business and its ability to create and sustain value in
the short, medium and long term.
ASSURANCE
Sibanye-Stillwater’s internal audit function provides
an objective evaluation of the Group’s internal
control processes and systems devised to mitigate
business risks and has ensured the accuracy of the
information presented.
Internal audit is a management function.
Independent external assurance provider, KPMG
Services Proprietary Limited (KPMG Services),
provided limited assurance on selected sustainability
performance indicators in accordance with the
International Standards on Assurance Engagements
(ISAE) 3000. KPMG Services’ Statement of Assurance
can be found on page 207.
STATEMENT OF
DIRECTORS’ ACCOUNTABILITY
AND COMMITMENT
As required by King IV, our Board acknowledges its
responsibilities in relation to good governance, ethical
leadership and responsible corporate citizenship. Good,
ethical governance is integral to value creation and
the board applies the principles of King IV to govern,
create, sustain and grow the company. Value creation
is an integrated, complex process and our reporting
reflects this.
The Board, supported by the Audit Committee, has
ultimate responsibility for this integrated report
and for overseeing and ensuring the integrity and
completeness of the information presented.
The Board, having applied its collective mind and
expertise, has determined that the information presented
in this report represents a fair and transparent review of
Sibanye-Stillwater, its principal material matters, its current
profile and performance, and its ability to create value in
the short, medium and long term.
This integrated report, which is presented in line with
the International Integrated Reporting Framework, was
approved for release to stakeholders, by the Board, on
29 March 2019 and signed on its behalf by:
Sello Moloko
Chairman
Neal Froneman
CEO
Charl Keyter
CFO
Keith Rayner
Audit Committee:
Chairman
Barry Davison
Safety and
Health Committee:
Chairman
Timothy Cumming
Remuneration
Committee: Chairman
Jerry Vilakazi
Social and Ethics
Committee: Chairman
Richard Menell
Risk Committee:
Chairman
Sibanye-Stillwater Integrated Report 2018 3
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
CORPORATE PROFILE
Sibanye-Stillwater is an independent, global,
precious metals mining company producing a
unique mix of metals that includes platinum
group metals (PGMs) and gold.
LOCATION OF OUR
OPERATIONS AND PROJECTS
Globally, Sibanye-Stillwater is the largest
primary producer of platinum* and the
second-largest palladium* producer. It
is also the second-largest producer of
gold from South Africa.
Domiciled and with its head office in
South Africa, Sibanye-Stillwater owns
and operates a portfolio of high-quality
global operations, processing facilities
and projects made up as follows:
United States (US) PGM
operations
The East Boulder and the Stillwater
(including Blitz) mines are located in
Montana, in the United States. The
Columbus Metallurgical Complex, which
smelts the material mined to produce PGM-
rich filter cake, also recycles PGMs from
autocatalysts.
Southern Africa (SA) PGM
operations
The Kroondal, Rustenburg and Platinum Mile
operations are located on the western limb of
the Bushveld Complex in South Africa, while the
Mimosa joint venture is situated on the southern
portion of the Great Dyke in Zimbabwe.
Platinum Mile is a retreatment facility, which
reprocesses arisings from Rustenburg.
South Africa (SA) gold operations
The Driefontein, Kloof and Cooke surface
operations and associated processing
facilities are located on the West Rand of
the Witwatersrand Basin, while Beatrix is in
the southern Free State goldfields. Sibanye-
Stillwater also has an interest in surface tailings
retreatment facilities located from the East
Rand to the West Rand through our 38.05%
stake in DRDGOLD Limited (DRDGOLD).
Projects
Our projects include:
• The Marathon PGM project in
Ontario, Canada
• The Altar and Rio Grande copper-gold
projects in the Andes in north-west
Argentina, close to the Chilean border
• The Hoedspruit, Zondernaam and
Vygenhoek, PGM projects in South Africa
• The Burnstone and the southern Free State
gold projects in South Africa
* Including proforma of the Lonmin transaction
4
Sibanye-Stillwater Integrated Report 2018
US PGM
operations
and projects
Argentina
projects
SA PGM
operations
and projects
SA gold
operations
and projects
PGM
GOLD
URANIUM
PGM-COPPER
COPPER-GOLD
OUR HISTORY
Following the unbundling by Gold Fields
of its South African gold assets (other than
South Deep) in 2013 to form Sibanye Gold
Limited, the Company has transformed
geographically and by metal produced –
from being a South African gold mining
company to an internationally competitive,
diversified precious metals miner producing
gold and the full suite of PGMs.
With the acquisition of the Stillwater Mining
Company in May 2017, Sibanye Gold was
rebranded as Sibanye-Stillwater.
In line with our strategy, we have continued
to advance the proposed acquisition of
Lonmin plc (Lonmin), which was initially
announced towards the end of 2017.
Sibanye-Stillwater also has a 38.05% stake
in DRDGOLD, following the vending of
certain of Sibanye-Stillwater’s surface gold
tailings facilities and processing assets into
that company. DRDGOLD is a world leader
in the retreatment of gold tailings.
OPERATING FRAMEWORK
Our operating framework is underpinned
by strong, ethical corporate governance
that is based on the principles of
accountability, transparency, competence,
responsibility, fairness and integrity,
which are fundamental to the long-
term sustainability of our business
and to sustained value creation for all
stakeholders. These principles, which
are implicit in and integral to our CARES
values, are applied in the management
of our business and in engaging with
and reporting to shareholders and other
stakeholders. Our governance structures,
processes and policies, together with our
code of ethics, underpin execution of our
strategy and support our business model.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OPERATIONAL PROFILE
A SNAPSHOT
US PGM operations
No. of operating mining units 1
Production of mined PGMs
Contribution to group PGM production
Contribution to group revenue
Contribution to adjusted EBITDA 2
Mineral Reserves
Fatalities
LTIFR 3
SA PGM operations
No. of operating mining units 4
Production of mined PGMs
Contribution to group PGM production
Contribution to group revenue
Contribution to adjusted EBITDA 2
Mineral Reserves
Fatalities
LTIFR 3
SA gold operations
No. of operating mining units 5
Production of gold
Contribution to group revenue
Contribution to adjusted EBITDA 2
Mineral Reserves
Fatalities
LTIFR 3
Units
2E Moz
%
%
%
2E Moz
Per million hours worked
Units
4E Moz
%
%
%
4E Moz
Per million hours worked
Units
Moz
%
%
Moz
Per million hours worked
2018
2
0.59
34
31
50
25.6
0
9.97
2017
2
0.38
21
20
24
21.9
0
7.80
2018
2017
4
1.2
66
30
34
20.4
3
4.68
2018
4
1.2
39
16
16.6
21
6.52
4
1.2
68
29
18
22.4
2
4.69
2017
4
1.4
51
59
25.7
9
6.33
1 Includes Stillwater and East Boulder mines
2 The Group reports adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) based
on the formula included in the facility agreements for compliance with the debt covenant formula. For a
reconciliation of profit/loss before royalties and tax to adjusted EBITDA, refer to the relevant notes in the
condensed consolidated interim financial statements
3 Lost-time injury frequency rate
4 Includes Kroondal (50% attributable pool and share agreement with Anglo American Platinum),
Rustenburg operation, Platinum Mile (91.7% stake in this operation which treats chrome tailings to recover
PGMs) and Mimosa (50:50 joint venture with Impala Platinum Holdings which manages this operation)
5 Includes Driefontein, Kloof, Beatrix, Cooke surface sources and DRDGOLD
6 Excludes ounces from recycling operation
Production by metal6
(2018)
3
28 %
41
28
Gold
Platinum
Palladium
Rhodium
Revenue contribution
(2018)
31
%
69
Southern Africa
United States
Geographic contribution
to adjusted EBITDA2 (2018)
50 %
50
Southern Africa
United States
Contribution to adjusted
EBITDA by metal (2018)
16
%
84
Gold
PGMs
Sibanye-Stillwater Integrated Report 2018 5
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE PROFILE CONTINUED
OUR PRODUCTS
Platinum
group
metals
Gold
Other
At our PGM operations in South Africa and Zimbabwe,
the primary PGMs produced are platinum, palladium
and rhodium, which together with gold, are referred to
as 4E (3PGM+Au). Production by ratio is approximately
58% platinum (Pt), 32% palladium (Pd), 8% rhodium
(Rh) and 2% gold (Au). The PGM-bearing ore mined here
is processed to produce PGMs-in-concentrate, which is
currently processed and refined by third parties.
The US PGM operations primarily produce palladium and
platinum (78% palladium and 22% platinum), referred to
as 2E (or 2PGM). The PGM-bearing ore mined is processed
and smelted to produce a PGM-rich filter cake. A third
party refines the filter cake to produce refined PGMs.
The major sources of demand for PGMs are for use
in autocatalysts and jewellery. Combined, these two
areas accounted for around 69%* of gross platinum
and palladium demand in 2018. Autocatalysts alone
accounted for 40%* of gross platinum demand and for
85%* of gross palladium demand in 2018.
Sibanye-Stillwater mines, extracts and processes gold-bearing
ore at its SA gold operations to produce a beneficiated
product, doré, which is then refined at Rand Refinery
Proprietary Limited into gold bars with a purity of at least
99.5% in accordance with the London Bullion Market
Association’s standards of Good Delivery. Sibanye-Stillwater
holds a 44% interest in Rand Refinery, one of the largest
refiners of gold globally, and the largest in Africa. Rand
Refinery markets and sells refined gold on international
markets to customers around the world.
The main sources of demand for gold are as a store of value
(such as central bank holdings), as an investment (exchange
traded funds, bars and coins), jewellery and for various
industrial purposes.
At our PGM operations in both regions, the minor PGMs –
iridium and ruthenium – are produced as co-products. They,
together with the three primary PGMs, are referred to as 6E
(5PGM+Au).
In addition, at the SA region’s PGM operations, nickel,
copper and chrome, among other minerals, are produced as
by-products.
* Source: Johnson Matthey
LISTINGS AND
SHAREHOLDER
INFORMATION
Sibanye-Stillwater has its
primary listing on the JSE, South
Africa, where it is included
in the FTSE/JSE Responsible
Investment Index. The company
is also listed on the NYSE, with
its shares quoted as American
Depositary Receipts (ADRs).
For further details, see
Shareholder engagement as
well as our corporate website,
www.sibanyestillwater.com.
As at 31 December 2018:
• Our biggest shareholder was
Gold One at 20.06% while
the three largest institutional
shareholders were the Public
Investment Corporation
(9.87%), Exor Investments UK
(8.15%) and Investec Asset
Management (5.00%)
• Our market capitalisation was
R22.7 billion (US$1.6 billion)
(2017: R34.3 billion;
US$2.8 billion)
(2016: R23.6 billion;
US$1.7 billion)
Geographic distribution
of shareholders
1
20
31
%
25
23
United States
South Africa
Europe (including United Kingdom)
China (Gold One)
Rest of the world
Sibanye-Stillwater Integrated Report 2018
6
6
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OUR PURPOSE,
VISION AND
STRATEGY
We care about safe production, our
stakeholders, our environment, our
company and our future, and live
our values. Our values underpin
all that we do – all the decisions
we make, how we conduct
our business, our actions and
behaviour.
O U R
P U R P O S E
Our mining improves lives
O U R
S T R A T E G Y
To deliver on our
vision and purpose,
we aim to consolidate
and strengthen our
competitive position as
a leading international
precious metals company
O U R
V I S I O N
Superior value creation
for all our stakeholders
through the responsible
mining and beneficiation
of our mineral resources
Development
Partners
Partners
Better Lives
Total
Returns
COMMUNITIES
E
EMPLOYEES
S
Sustainable
Value
a
Clean
Water/Air/
r/Air/
nd
Land
LDERS
SHAREHOLDERS
COM
COMPANY
Regional
Region
Economy
Econom
(see Delivering on our strategy)
ENVIRONMENT
Safety,
Health &
Wellbeing
CARES
about our...
MINING
INDUSTRY
Costs
Grade
Volume
COMMITMENT
ACCOUNTABILITY
RESPECT
ENABLING
SAFETY
Sibanye-Stillwater Integrated Report 2018 7
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OUR STRATEGY
DELIVERING
ON OUR STRATEGY
We have defined five strategic focus
areas, designed to strengthen our position
as a leading, international precious
metals mining company. Our strategic
focus is on creating stakeholder value.
We aim to do this by seeking to ensure that we have in place a values-
based organisational culture that:
• supports our strategy
• focuses on employee safety and health as well as operational excellence
• ensures consistent delivery on our commitments
• is led from the top by a trusted, high-performing leadership
Our aim is to position Sibanye-Stillwater optimally in global capital
markets to enable us to deliver on our strategy and to pursue
value-accretive growth. In recent years, strategic development has
encompassed diversification by commodity and by region.
01
Establishing a
values-based culture
See CEO’s review
02
Focus on safe production
and operational excellence
See Delivering value from operations,
projects and technology, Ensuring safe
production, and Occupational health
and well-being
03
Deleveraging our balance sheet
Timeline of value-accretive growth
See CFO’s report
April 2016:
Initial foray into the SA PGM sector with
acquisition of Aquarius Platinum
(Kroondal, Mimosa and Platinum Mile)
November 2016:
Followed by acquisition of our
Rustenburg operations
Delivered ~R1 billion of annual synergies from
these two transactions, well ahead
of schedule
May 2017:
Entry into US PGM sector with acquisition
of Stillwater Mining Company
December 2017:
Announced proposed acquisition of Lonmin –
February 2019:
significant potential synergies with existing
SA PGM operations and aligned with our mine-
to-market strategy (completion expected
during 2019)
Acquisition of SFA (Oxford) announced – will
contribute institutional knowledge of the broader
fundamentals and outlook for PGMs and high-
tech metals and their use in future technologies
04
Addressing our
South African discount
See CFO’s report
05
Pursuing value-accretive growth
See CEO’s review and Delivering value
from operations, projects and technology
8
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION 2018: What we did
Rating
2019: What we plan to do
• Emphasised our core CARES values, which also
• Grow leadership capability to foster culture of CARES,
underpin our enhanced safety strategy and framework
based on trust
• Emphasised the importance of leadership’s example in
• Strengthen our values-based decision making culture
living our values
• Enhanced senior leadership structure to better support
production delivery and drive organisational priorities
• Secured strong adjusted EBITDA ahead of
expectations from our PGM operations accounting
for 84% of Group adjusted EBITDA in 2018
• Enhanced safety framework and restored our
benchmark safety record in medium to deep-level
hard-rock mining following aberrational safety
incidents in the first half of 2018
• Continued Blitz production ramp-up
• Advance strengths of leadership personnel
• Ensure continued robustness of leadership succession plans
• Continue to entrench enhanced safety strategy and
framework
• Reposition SA gold operations for sustained profitability
and growth
• Maintain positive performance at PGM operations in South
Africa and the United States and sustain Blitz ramp-up
• Make progress towards increased formal accreditation
under responsible mining codes and strengthening our
environmental, social and governance (ESG) credentials
• Encourage leadership qualities necessary to achieve
innovative operating and leadership excellence
• Concluded stream financing agreement, providing
• Generate strengthened cash flow through focus on
an alternative source of financing to buy-back bonds,
which reduced debt repayment obligations and
annual coupon costs significantly
• Refinanced and increased revolving credit facility to
improve liquidity
• Our geographic diversification has resulted in an
increasing portion of our adjusted EBITDA being
generated outside of South Africa – 50% in 2018
versus 24% in 2017 – a consequence of the growing
significance of the US PGM operations within the Group
• Improvements in policy quality and regulatory certainty
have been secured in the South African mining sector
as evidenced by the 2018 Fraser Survey findings
• Consolidated benefits derived from acquisitions with
a balanced commodity and geographic footprint
• Lonmin transaction progressed towards conclusion
as the fourth step of our PGM strategy to provide full
mine to metal access in South Africa
• Concluded transaction to acquire 38.05% of DRDGOLD
through the vending of certain surface sources to
DRDGOLD thus retaining optionality to their upside
• Progressed acquisition of SFA (Oxford) to enhance access
to strategic market intelligence around powertrain
evolution, energy trends and related minerals
operating effectiveness and business improvement, in
particular leveraging off opportunities enabled through
digitalisation, in a strengthening commodity price
environment
• Transition to toll refining arrangement at our SA PGM
operations boosting revenue and cash flow
• Target 1.5x for the net debt to adjusted EBITDA ratio
• Enhance the operating context for effective safe
production delivery, building on commitments to
competitiveness, growth and transformation through
meaningful social compacting in an improving policy and
regulatory environment
• Conclude the Lonmin acquisition and secure benefits of
integration and mine to metal market access
• Prepare for future strategic growth opportunities by:
– Deepening investigation into potential of high-tech metals
– Crystallising target acquisition pipeline
Good
Unchanged
More work to be done
Sibanye-Stillwater Integrated Report 2018 9
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION HOW WE CREATE VALUE – OUR BUSINESS MODEL
We create and share value to improve lives through
our business activities. In so doing, we invest in and
optimise the responsible use of our capital inputs, to
ensure sustained value creation in the long term.
A strong, principled governance framework,
underpinned by our values and Code of Ethics, ensures
responsible conduct of our business, secures our licence
to operate and supports our aim to deliver sustainable
value and ensure our long-term sustainability.
GOVERNANCE
RESOURCE INPUTS
HUMAN CAPITAL AND INTELLECTUAL CAPITAL
• Skilled, motivated workforce
• Training and development
• Strong, committed leadership
• Service providers and contractors
Challenge: Employee safety, organised labour disputes, requisite skills and
productivity levels
FINANCIAL CAPITAL
• Equity, debt and cash flow
• Applied to enhance other resource inputs
• Efficient capital management and allocation
Challenge: Subdued commodity prices, exchange rate volatility and
cost of capital
NATURAL CAPITAL
• Economically viable orebodies
• Land, water and energy consumed
Challenge: Scarcity of viable orebodies, water and energy, environmental
impact and compliance
SOCIAL AND RELATIONSHIP CAPITAL
• Positive, constructive stakeholder relations ensure
we maintain our licence to operate
• Honest, transparent, regular engagement based
on trust
• Thoughtful and ethical procurement
• Investor and financial institution confidence
Challenge: Community activism and expectations
MANUFACTURED CAPITAL
• Six PGM and four gold mining operations in
two geographic areas together with associated
infrastructure, plant and equipment
• Optimising processes to ensure cost-efficient
operations
• PGM recycling facility
• Projects at various stages of prospecting and
development
Challenge: Workplace safety, eliminating harm and containing costs
10
Sibanye-Stillwater Integrated Report 2018
PRIMARY BUSINESS ACTIVITIES
• Developing and mining of underground and surface
resources
• Processing and refining (including PGM recycling)
• Sale of end products and financial management
• Environmental management, land rehabilitation
and mine closure
• Management of stakeholder relations
Delivering
on our
strategy
MATERIAL RISKS
• Government action
• Socio-political instability
and unrest in
South Africa
• Safety incidents and
breaches of safety
policies
• Mining Charter outcome
and Mineral and
Petroleum Resources
Development Act
amendments
• Under-delivery on plans
• Significant PGM, gold and other commodity price decreases
• Global economic downturn or strengthened US economy
• Financial covenants and net debt
• Organised labour
• Change in regulatory requirements
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Our Board:
• sets and guides strategy and strategic objectives
and oversees policy
• has ultimate accountability for Sibanye-Stillwater’s
conduct as an ethical, responsible corporate citizen
FACTORS AFFECTING VALUE CREATION
What we can control
• Grade and volumes mined safely
• Operational efficiency
• Cost management
• Stakeholder relationships
What is beyond our control
• Rand-dollar exchange rate
• Commodity prices and demand
fundamentals
• Regulatory changes
• Geopolitics and state of
the global economy
• Power supply insecurity
• Seismic events
RESOURCE OUTPUTS AND OUTCOMES 2018
HUMAN CAPITAL AND INTELLECTUAL CAPITAL
• Employed 64,906 (2017: 66,472) people
•
R559 million (2017: R532 million) spent on employee
training and development
•
Continued focus on safe production and adoption of
Zero Harm Strategic Safety Framework
FINANCIAL CAPITAL
•
Generated revenue of R50 billion (2017: R46 billion)
• Borrowings of R25 billion (2017: R26 billion) at year end
NATURAL CAPITAL
•
Mined 54.5Mt (2017: 46.1Mt) of ore and produced 1.2Moz
(2017: 1.4Moz) of gold, 1.18Moz (2017: 1.19Moz) of 4E
PGMs and 0.59Moz (2017: 0.38Moz) of 2E PGMs
• 6 (2017: 18) level 3 and higher environmental incidents
• 56,000ML (2017: 55,000ML) of water used
•
Carbon intensity of 0.14t CO2e (2017: 0.13t CO2e) per
tonne milled
FACTORS SUPPORTING
VALUE CREATION
• Strength and quality of our
leadership teams
• Employee skills and expertise
• Product diversity
• Regional diversity
SOCIAL AND RELATIONSHIP CAPITAL
•
Concerted effort to improve stakeholder engagement and
relations at our operations
• Social compact introduced
MANUFACTURED CAPITAL
•
• Maintenance of infrastructure
Progressed proposed acquisition of Lonmin
DISTRIBUTION OF VALUE CREATED IN THE GROUP
EMPLOYEES
• Paid R15.7bn
GOVERNMENT
• Paid R542m (2017: R899m)
SUPPLIERS
• Spent R29.3bn (2017:
(2017: R15.3bn) in
salaries and wages
R23.6bn) on procurement
in the Group*
• R559m
(2017: R532m)
on training and
development
• R10.8bn (2017: R10.6bn)
of procurement spend in
South Africa was with
BEE companies
in taxes and royalties
• Paid R2.5bn (2017: R2.7bn) in
personal income tax on behalf of
employees in SA
COMMUNITIES
• Invested R1.4bn (2017: R1.2bn)
in socio-economic development
and CSI
INVESTORS/
CAPITAL PROVIDERS
• Reduced net debt:
adjusted EBITDA from
2.6x to 2.5x
SUSTAINING AND
GROWING THE BUSINESS
• Growth project capital
expenditure of R2.3bn
(2017: R1.5bn)
• Sustaining capital
expenditure and ore
reserve development of
R4.8bn (2017: R4.6bn)
* Procurement expenditure reflects cost of sales including transaction costs, capital expenditure and other sundry costs, but excluding employee costs, utilities, amortisation and
depreciation. 2018 is higher due to 12 months inclusion of the US PGM operations compared to 8 months inclusion in 2017 since the acquisition.
Sibanye-Stillwater Integrated Report 2018 11
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE AND LEADERSHIP
ANCILLARY INFORMATION
FIVE-YEAR STATISTICAL REVIEW
Our performance statistics for the year ended 31 December 2018, elaborated in our suite of reports, are listed in this table.
SUSTAINABLE DEVELOPMENT STATISTICS
2018
2017
US
operations
Group
SA
operations
Group
US
operations
SA
operations
Employment
Salaries and wages paid
R million
15,710
2,583
5,483
7,645
15,323
1,599
5,724
8,000
R million
9,276
1,483
7,793
7,345
6,665
Unit
PGM
PGM
Gold
1 PGM
PGM
Gold
Unit
2 PGM
Gold
Gold
Gold
Employee costs share % of cost of sales
before amortisation and depreciation
%
No. of employees including contractors
– Total 4
64,906
Female representation in the workforce %
13
8.5
38
22
45
43
42
23
49
45
45
44
45
45
47
66,472
13
11
12
21
15
3
7
0
14
2
12
9
Female representation in the workforce
%
74,531
46,269
44,411
5 24
5 5.89
0
9.97
4.68
6.52
5.78
7 7.80
4.69
7 6.33
Lost-time injury frequency rate (LTIFR) 6
Employment
Salaries and wages paid
Employee costs share % of cost of sales
before amortisation and depreciation
No. of employees including
contractors – Total 4
Safety
No. of fatalities
Medically treated
injury frequency rate (MTIFR) 6,8
Health
No. of cases reported:
Silicosis 31
Noise-induced hearing loss (NIHL) 10
Chronic obstructive airways disease
Cardiorespiratory tuberculosis (TB) – new
and retreatment cases
TB incidence – new and relapse cases
2016
SA
2015
SA
3 2014
SA
Group
operations
operations
operations
14
6.62
2
4.84
12
6.99
7
6.74
12
5.87
3.85
5.72
3.47
3.60
3.37
240
188
46
707
707
89
62
16
73
23 73
151
126
30
634
634
186
105
57
744
744
264
138
45
832
832
Highly-active antiretroviral treatment (HAART) patients on
treatment and in active employment
HIV prevalence of employees
Number
%
9,925
3,545
6,380
5,750
5,283
8
4
13
22
21
5 2.69
24.51
1.95
2.32
2.60
24.65
2.44
7 2.26
5 165
5 243
5 70
5 480
5 539
Number
5 9,745
NA
0
NA
NA
NA
NA
NA
106
167
41
155
157
59
76
29
325
382
261
193
50
570
623
3,090
6,655
9,761
1
8
6
NA
0
0
NA
NA
NA
NA
68
100
13
148
148
193
93
37
422
475
3,133
6,628
1
10
Safety
No. of fatalities
Lost-time injury frequency rate (LTIFR) 6
Medically treated
injury frequency rate (MTIFR) 6,8
Health
No. of cases reported:
Silicosis 9
Noise-induced hearing loss (NIHL) 10
Chronic obstructive airways disease
Cardiorespiratory tuberculosis (TB) –
new and retreatment cases
TB incidence – new and relapse cases
Highly-active antiretroviral treatment
(HAART) patients on treatment and in
active employment
HIV prevalence of employees
%
5 4
12
Sibanye-Stillwater Integrated Report 2018
Our performance statistics for the year ended 31 December 2018, elaborated in our suite of reports, are listed in this table.
SUSTAINABLE DEVELOPMENT STATISTICS
2018
US
SA
2017
US
SA
operations
Group
operations
operations
Group
operations
Salaries and wages paid
R million
15,710
2,583
5,483
7,645
15,323
1,599
5,724
8,000
before amortisation and depreciation
%
38
22
45
43
42
23
49
45
Unit
PGM
PGM
Gold
1 PGM
PGM
Gold
Unit
2 PGM
Gold
Gold
Gold
2016
2015
3 2014
Group
SA
operations
SA
operations
SA
operations
Employment
Salaries and wages paid
Employee costs share % of cost of sales
before amortisation and depreciation
No. of employees including
contractors – Total 4
R million
9,276
1,483
7,793
7,345
6,665
45
44
45
45
47
74,531
46,269
44,411
Female representation in the workforce %
13
8.5
Female representation in the workforce
%
Lost-time injury frequency rate (LTIFR) 6
9.97
4.68
6.52
5.78
7 7.80
4.69
7 6.33
Lost-time injury frequency rate (LTIFR) 6
Safety
No. of fatalities
Medically treated
injury frequency rate (MTIFR) 6,8
Health
No. of cases reported:
Silicosis 31
Noise-induced hearing loss (NIHL) 10
Chronic obstructive airways disease
Cardiorespiratory tuberculosis (TB) – new
and retreatment cases
TB incidence – new and relapse cases
14
6.62
2
4.84
12
6.99
7
6.74
12
5.87
3.85
5.72
3.47
3.60
3.37
240
188
46
707
707
89
62
16
73
23 73
151
126
30
634
634
186
105
57
744
744
264
138
45
832
832
active employment
Number
5 9,745
3,090
6,655
9,761
Highly-active antiretroviral treatment (HAART) patients on
treatment and in active employment
HIV prevalence of employees
%
5 4
1
8
6
HIV prevalence of employees
Number
%
9,925
3,545
6,380
5,750
5,283
8
4
13
22
21
Employee costs share % of cost of sales
No. of employees including contractors
Employment
– Total 4
Safety
No. of fatalities
Medically treated
injury frequency rate (MTIFR) 6,8
No. of cases reported:
Health
Silicosis 9
Noise-induced hearing loss (NIHL) 10
Chronic obstructive airways disease
Cardiorespiratory tuberculosis (TB) –
new and retreatment cases
TB incidence – new and relapse cases
Highly-active antiretroviral treatment
(HAART) patients on treatment and in
5 2.69
24.51
1.95
2.32
2.60
24.65
2.44
7 2.26
15
3
106
167
41
155
157
64,906
5 24
5 5.89
0
5 165
5 243
5 70
5 480
5 539
NA
0
NA
NA
NA
NA
NA
66,472
13
11
12
21
7
0
14
2
12
9
59
76
29
325
382
261
193
50
570
623
NA
0
0
NA
NA
NA
NA
68
100
13
148
148
193
93
37
422
475
3,133
6,628
1
10
Sibanye-Stillwater Integrated Report 2018 13
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION FIVE-YEAR STATISTICAL REVIEW CONTINUED
SUSTAINABLE DEVELOPMENT STATISTICS CONTINUED
2018
2017
US
operations
Group
SA
operations
Group
US
operations
SA
operations
PGM
PGM
Gold
1 PGM
PGM
Gold
3,450
NA
NA
3,450
7,552
NA
NA
7,552
11,967
NA
11,967
11,924
11,758
5 5,666
5 2,157
0.14
660
5 5.60
5 1,003
5 126
56
141
569
0.11
5 4.4
0.32
314
4
1.2
1,442
995
4,083
593
6,598
2,539
0.07
197
1.49
481
16
16
0.24
459
3.79
208
106
39
0.13
611
6.01
853
126
55
215
544
0.01
6
0.24
179
2
1
1,616
980
4,766
1,016
0.06
200
1.61
460
14
14
0.25
405
4.16
214
109
40
1.35
17 0.35
0.78
2.23
1.32
170.43
21 0.69
2.10
2.09
16 NA
Environment
Cyanide consumption
Total CO2e emissions:
Scope 1 and 2 11
Scope 3 12
Emissions intensity 13
SO2 emissions 14
Electricity consumed
Diesel
Total water withdrawn
Water used 15
Water use intensity
Environmental incidents:
level 3 and higher
Gross rehabilitation liabilities
HDSA representation (South Africa) 34
Top management (Board)
Senior management (Executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend
Socio-economic development
Social and labour plan (SLP) projects 18
Total BEE procurement spend 19
Capital goods 19
Services 19
Consumables 19
% of total procurement 19
Other
Current tax and royalties
Research and development
2016
SA
2015
SA
3 2014
SA
Group
operations
operations
operations
2 PGM
Gold
Gold
Gold
5,432
1,029
575
180
4,857
849
5,016
867
0.12
0.24
0.22
667
4.72
462
112
46
1.71
19
6.15
31
45
29
53
656
59
81
84
68
77
0.6
207
4
4
0.66
13
2.03
NA
NA
33
58
87
12
85
93
88
90
4.16
255
107
41
2.05
6
4.12
NA
NA
25
48
569
47
77
79
62
71
5,175
863
0.28
632
4.27
225
117
16 NA
9
42
41
25
46
24
54
72
67
67
1,055
0.25
499
4.23
231
115
42
8
31
43
30
48
691
27
56
76
72
72
7,585
2,689
4,896
4,700
4,680
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
%
%
%
%
R million
R million
R million
R million
R million
1,678
16
1,097
18
1,310
5
45
40
36
50
43
48
986
1,161
3
24
33
52
399
15
5,505
5,336 10,605
83
85
83
83
75
81
70
75
81
77
78
78
903
13
NA
NA
3
NA
NA
NA
NA
NA
NA
38
53
367
11
35
49
792
13
4,901
5,704
82
82
78
80
81
73
77
76
1
0.67
3
2.83
2
4.27
18
7.46
6
0.56
3
2.72
9
4.18
5 6
7.77
5 46
5 36
5 40
5 49
NA
NA
Environment
Cyanide consumption
Total CO2e emissions:
Scope 1 and 2 11
Scope 3 12
Emissions intensity 13
SO2 emissions 14
Electricity consumed
Diesel
Total water withdrawn
Water used 15
Water use intensity
Environmental incidents:
level 3 and higher
Gross rehabilitation liabilities
HDSA representation (South Africa) 22
Top management (Board)
Senior management (Executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend 22
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
Total socio-economic development
R million
5 1,390
5.13
Social and labour plan (SLP) projects 18
R million
5 18
Total BEE procurement spend 19
R million
5 10,841
Capital goods 19
Services 19
Consumables 19
% of total procurement 19
Other
Current tax and royalties
Research and development
%
%
%
%
R million
R million
5 82
5 76
5 81
79
308
19
NA
NA
NA
NA
NA
NA
14
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION 2018
US
SA
2017
US
SA
operations
Group
operations
operations
Group
operations
PGM
PGM
Gold
1 PGM
PGM
Gold
3,450
NA
NA
3,450
7,552
NA
NA
7,552
1,442
995
4,083
593
6,598
2,539
1,616
980
4,766
1,016
0.24
459
3.79
208
106
39
0.13
611
6.01
853
126
55
0.06
200
1.61
460
14
14
0.25
405
4.16
214
109
40
1.35
17 0.35
0.78
2.23
1.32
170.43
21 0.69
2.10
1
0.67
3
2.83
2
4.27
18
7.46
6
0.56
3
2.72
9
4.18
SUSTAINABLE DEVELOPMENT STATISTICS CONTINUED
Environment
Cyanide consumption
Total CO2e emissions:
Scope 1 and 2 11
Scope 3 12
Emissions intensity 13
SO2 emissions 14
Electricity consumed
Diesel
Total water withdrawn
Water used 15
Water use intensity
Environmental incidents:
level 3 and higher
Gross rehabilitation liabilities
HDSA representation (South Africa) 22
Top management (Board)
Senior management (Executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend 22
Capital goods 19
Services 19
Consumables 19
% of total procurement 19
Other
Current tax and royalties
Research and development
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
%
%
%
%
R million
R million
5 5,666
5 2,157
0.14
660
5 5.60
5 1,003
5 126
56
5 6
7.77
5 46
5 36
5 40
5 49
5 18
5 82
5 76
5 81
79
308
19
141
569
0.11
5 4.4
0.32
314
4
1.2
NA
NA
NA
NA
NA
NA
NA
NA
0.07
197
1.49
481
16
16
33
52
399
15
83
85
83
83
43
48
3
75
81
70
75
45
40
36
50
24
81
77
78
78
903
13
38
53
367
11
82
82
78
80
35
49
792
13
81
73
77
76
Total socio-economic development
R million
5 1,390
5.13
986
1,161
Social and labour plan (SLP) projects 18
R million
Total BEE procurement spend 19
R million
5 10,841
5,505
5,336 10,605
4,901
5,704
215
544
0.01
0.24
179
6
2
1
NA
NA
3
NA
NA
NA
NA
NA
NA
Environment
Cyanide consumption
Total CO2e emissions:
Scope 1 and 2 11
Scope 3 12
Emissions intensity 13
SO2 emissions 14
Electricity consumed
Diesel
Total water withdrawn
Water used 15
Water use intensity
Environmental incidents:
level 3 and higher
Gross rehabilitation liabilities
HDSA representation (South Africa) 34
Top management (Board)
Senior management (Executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend
Socio-economic development
Social and labour plan (SLP) projects 18
Total BEE procurement spend 19
Capital goods 19
Services 19
Consumables 19
% of total procurement 19
Other
Current tax and royalties
Research and development
2016
2015
3 2014
Group
SA
operations
SA
operations
SA
operations
2 PGM
Gold
Gold
Gold
11,967
NA
11,967
11,924
11,758
5,432
1,029
575
180
4,857
849
5,016
867
2.09
16 NA
0.22
667
4.72
462
112
46
1.71
19
6.15
31
45
29
53
656
59
0.12
0.24
0.6
207
4
4
0.66
13
2.03
NA
NA
33
58
87
12
4.16
255
107
41
2.05
6
4.12
NA
NA
25
48
569
47
0.25
499
4.23
231
115
42
8
31
43
30
48
691
27
7,585
2,689
4,896
4,700
81
84
68
77
85
93
88
90
77
79
62
71
56
76
72
72
5,175
863
0.28
632
4.27
225
117
16 NA
9
42
41
25
46
1,055
24
4,680
54
72
67
67
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
R million
R million
R million
%
%
%
%
R million
R million
1,678
16
1,097
18
1,310
5
Sibanye-Stillwater Integrated Report 2018 15
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION FIVE-YEAR STATISTICAL REVIEW CONTINUED
OPERATING STATISTICS
US PGM operations (acquired in May 2017)
Production
2018
1 2017
2016
2015
3 2014
Ore milled
2E PGM production
Price and costs
Average PGM basket price
Operating cost 20
Adjusted EBITDA 23
Adjusted EBITDA margin 24
All-in sustaining cost 25
All-in sustaining cost margin 25
Total capital expenditure
SA PGM operations (attributable) 2
Production
Ore milled
4E PGM production
Price and costs 26
Average PGM basket price
Operating cost 20
Adjusted EBITDA 23
Adjusted EBITDA margin 24
All-in sustaining cost 25
All-in sustaining cost margin 25
Total capital expenditure
000t
kg
000oz
R/2Eoz
US$/2Eoz
R/2Eoz
US$/2Eoz
R million
%
R/2Eoz
US$/2Eoz
%
US$ million
R million
000t
kg
000oz
R/4Eoz
US$/4Eoz
R/4Eoz
US$/4Eoz
R million
%
R/4Eoz
US$/4Eoz
%
R million
US$ million
1,339
18,432
593
855
11,706
376
13,337
12,330
1,007
7,576
572
4,152
26
8,994
677
37
214
2,833
25,841
36,568
1,176
13,838
1,045
11,019
832
2,882
19
927
7,001
526
2,143
23
8,707
651
29
1,654
124
26,196
37,148
1,194
12,534
942
10,831
814
1,594
12
11,612
13,087
421
12,209
832
7,993
545
350
9
10,417
10,399
10,403
787
14
1,000
76
782
16
1,035
78
709
8
327
23
16
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OPERATING STATISTICS CONTINUED
2018
2017
2016
2015
3 2014
SA OPERATIONS
SA gold operations
Production
Ore milled
Gold produced
Price and costs
Gold price
Operating cost 20
Adjusted EBITDA 23
Adjusted EBITDA margin 24
All-in sustaining cost 25
All-in sustaining cost margin 25
Total capital expenditure
000t
kg
000oz
R/kg
US$/oz
R/kg
R million
%
R/kg
US$/oz
%
R million
US$ million
27,199
36,600
1,177
19,030
43,634
1,403
20,181
47,034
1,512
19,861
47,775
1,536
18,325
49,432
1,589
535,929
536,378
586,319
475,508
440,615
1,259
1,254
1,242
1,160
1,267
490,209
408,773
369,707
342,857
289,509
1,362
7
5,309
23
9,920
36
6,235
27
7,360
34
557,530
482,693
450,152
422,472
372,492
1,309
(4)
3,248
245
1,128
10
3,410
256
954
23
3,824
261
1,031
11
3,345
262
1,071
15
3,251
300
1 As the US PGM operations were acquired in May 2017, this represents eight months in that year
2 The SA PGM operations for 2016 represented nine months’ data for Kroondal (50%), Mimosa (50%) and Platinum Mile (50%), where applicable
and two months for Rustenburg operations. Health data for 2016 includes 12 months of SA PGM operations
3 As the Cooke operations were acquired on 15 May 2014, this does not represent full year data for that operation for that year
4 For a detailed breakdown of employees and contractor numbers, refer to the Superior value for the workforce section on page 92 of this report
5 The sustainable development indicators for 2018 have been externally assured by KPMG. Refer to the Statement of Assurance on page 207 of this report
For details on similar assurance in prior years, refer to prior integrated reports available at www.sibanyestillwater.com
6 Rate per million hours worked
7 These indicators were restated due to rounding and the re-application of the Group definition
8 Includes certain minor injuries
9 Includes new and resubmission cases
10 The NIHL testing method differs at the US and SA operations
11 Scope 1 and 2 emissions include fugitive mine methane. The fugitive mine methane emissions for 2017 total 564 560t CO2e. We have chosen to
report our Scope 1 and Scope 2 emissions separately from our Scope 3 emissions as Scope 1 and Scope 2 emissions are under our direct control
while Scope 3 emissions represent the effect of our business activities across the supply chain. Although it is not a mandatory Intergovernmental
Panel on Climate Change reporting category, we are also reporting our fugitive mine methane emissions in the Free State province of South
Africa in line with the transparency principle of the ISO greenhouse gas quantification standard. The 2016 carbon emissions include the emissions
from the operations acquired as of the time the acquisitions became effective (Aquarius operations from April 2016 and Rustenburg operations
from November 2016)
12 Refer to reference note relating to Scope 3 emissions on page 146 of this report
13 Emissions intensity (tCO2e/t milled) is the intensity ratio of the total Scope 1 and 2 emissions from the operations under our operational control
and, similarly, the tonnes milled from the operations under our operational control
14 Sulphur dioxide (SO2) emissions for the SA and US operations are derived by the multiplication of fuels (diesel, petrol, liquid petroleum gas, coal,
helicopter fuel and paraffin) by the corresponding emission factors. The US operations are reporting SO2 emissions from the metallurgical processes
as those may be regulated with a cap
15 This year we report on the volume of water used rather than on the volume recycled and reused. Sibanye-Stillwater operates mines that generate
almost zero effluent (100%) consumed and mines that must discharge certain volumes of water in terms of their water use licences to satisfy
the requirements of the environmental reserve and/or to satisfy dewatering requirements. Nevertheless, Sibanye-Stillwater continues to practice
effective water conservation and water demand management in accordance with the requirements each of its water use licence
16 Data not available to report
17 Water use intensity in the US operations is 0.35kL/tonne treated. The US mines are relatively dry and water use is low, given that most of the
water withdrawn is discharged through the water recycle/reuse systems in place. In addition, given the high rainfall, water is collected and a
significant amount of storm water is used in the process facilities. Almost all the water discharged is treated
18 Includes spend on approved social and labour plans
19 The BEE proportion of total procurement applies to procurement spend in South Africa only
20 Operating cost is average cost of production, and operating cost per ounce and kilogram is calculated by dividing the cost of sales before
amortisation and depreciation and change in inventory in a period by the PGM or gold produced in the same period
21 For detail on these figures, refer to footnote 8 on page 133 in Minimising the environmental impact (under water management)
22 HDSA in management includes management classified as designated groups and employed at management levels (excluding foreign nationals
and white males)
Sibanye-Stillwater Integrated Report 2018 17
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION FIVE-YEAR STATISTICAL REVIEW CONTINUED
GROUP FINANCIAL STATISTICS
Income statement (extract)
Revenue
(Loss)/profit for the year
Earnings per share
Headline earnings per share
Number of shares in issue at end of period
Statement of financial position (extract)
Cash and cash equivalents
Total assets
Borrowings 27
Total liabilities
Statement of cash flows (extract)
Net increase/(decrease) in cash
and cash equivalents
Other financial data
Adjusted EBITDA 23
Net debt 28
Net debt to adjusted EBITDA
Net asset value per share
Debt to equity 29
Dividends declared per share
Dividend yield 30
Average exchange rate 31
Closing exchange rate 32
Share data
Market capitalisation at year end
Average daily volume of shares traded
Ordinary share price – high
Ordinary share price – low
Ordinary share price at year end
R million
R million
cents
cents
000
R million
R million
R million
R million
2018
50,656
(2,521)
(110)
(1)
2,266,261
2,549
84,923
24,505
60,199
2017
45,912
(4,433)
(229)
(12)
2,168,721
2,062
76,072
25,650
52,074
2016
31,241
3,043
225
162
929,004
968
41,721
8,974
25,252
2015
22,717
538
47
44
916,140
717
28,266
3,804
13,281
3 2014
21,781
1,507
106
97
898,840
563
27,922
3,170
12,936
R million
352
1,403
408
155
(930)
R million
R million
ratio
R
ratio
R
%
R/US$
R/US$
R billion
US$ billion
000
R/share
R/share
R/share
8,369
21,269
2.5
10.91
243.5
–
–
13.24
14.35
22.7
1.58
10,567
17.16
6.82
10.02
9,045
23,176
2.6
11.07
217.0
–
–
13.31
12.36
34.2
2.77
9,080
33.26
14.15
15.78
10,270
6,293
0.6
17.73
153.3
1.45
5.7
14.68
13.69
23.6
1.72
6,165
70.23
21.98
25.39
6,235
1,362
0.2
16.36
88.6
1.00
4.4
12.75
15.54
20.9
1.34
3,024
32.26
13.66
22.85
7,360
1,506
0.2
16.67
86.3
1.12
5.0
10.82
11.56
20.3
1.76
2,869
29.52
12.34
22.55
23 Adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) is based on the formula included in the facility agreements for compliance
with the debt covenant formula. For a reconciliation of loss before royalties and tax to adjusted EBITDA, see the Annual Financial Report 2018
24 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
25 Sibanye-Stillwater presents the financial measures ‘All-in sustaining cost’, ‘All-in cost’, ‘All-in sustaining cost per kilogram’, ‘All-in sustaining cost per
ounce’, ‘All-in cost per kilogram’ and ‘All-in cost per ounce’, which were introduced during the year ended 31 December 2013 by the World Gold
Council and are not IFRS measures. Total All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital,
impairments, financing costs, one-time severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, being
the cost to sustain current operations, given as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure growth.
For a reconciliation of cost of sales before amortisation and depreciation to All-in sustaining cost and All-in cost, see the Annual Financial Report 2018.
All-in sustaining margin is defined as revenue minus All-in sustaining cost divided by revenue, and All-in cost margin is defined as revenue minus
All-in cost divided by revenue
26 The total SA PGM operations’ unit cost benchmarks (including capital expenditure) exclude the financial results of Mimosa, which is equity-
accounted, and excluded from revenue and cost of sales
27 Borrowings of R23,769 million (2017: R25,206 million) that have recourse to Sibanye-Stillwater exclude the Burnstone Debt and include derivative
financial instruments
28 Net debt represents borrowings and bank overdraft less cash and cash equivalents. Borrowings are only those borrowings that have recourse to
Sibanye-Stillwater and therefore exclude the Burnstone Debt and include derivative financial instruments. Net debt excludes Burnstone cash and
cash equivalents
29 The debt to equity ratio is a debt ratio used to measure the Group’s financial leverage and is calculated by dividing total liabilities by equity
30 The dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. Dividend yield is
represented as a percentage and is calculated by dividing the dividends per share declared in a given year by the ordinary share price at the end of
the year
31 The average exchange rate during the relevant period as reported by I-Net Bridge
32 The closing exchange rate at financial year end
18
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE AND LEADERSHIP
ANCILLARY INFORMATION
Employees commute to the surface using the chairlift transportation at the K6 shaft at the SA PGM operations
Sibanye-Stillwater Integrated Report 2018 19
INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE
ANCILLARY INFORMATION
02
A review of our internal
and external context
21 Perspective from the Chair
24 Chief Executive Officer’s review
33 Chief Financial Officer’s report
40 Manging our risks and opportunities
56 Stakeholder engagement
Sibanye-Stillwater Integrated Report 2018 20
Sibanye-Stillwater Integrated Report 2018
20
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATIONsectionview from the top PERSPECTIVE FROM THE CHAIR
It is again my privilege to report to all our
stakeholders on the progress made by the Group
during 2018. Despite the significant vicissitudes
and challenges that we had to contend with
during the past year, I am pleased to report
that we have emerged from this difficult period
in a robust state with the appropriateness of
our carefully considered strategy to diversify,
geographically and by commodity, already proven.
Specific challenges, which impacted on our SA
gold operations, persisted at the end of the
year. I am confident though that the careful and
forthright management of these will result in a
satisfactory and progressive outcome with our
organisation poised to benefit from a constructive
global climate for precious metals prices.
Elsewhere in this report, our CEO, Neal
Froneman, discusses in detail the challenges
that occurred and other developments that
characterised our overall performance during the
past year. I will, therefore, confine my review to
those aspects that determined and affected our
operating environment.
It is impossible to reflect on 2018 without
recognising the tragic safety incidents, which
occurred in the first half of 2018. The health
and safety of Sibanye-Stillwater’s employees is
our key priority. This unparalleled sequence of
tragic events, which resulted in the deaths of our
colleagues, traumatised and consumed everyone
at Sibanye-Stillwater. The Board and management
of Sibanye-Stillwater again extend their deepest
condolences to the dependants and loved ones
of the deceased employees. We will continue to
provide appropriate support as required.
These tragic events were inconsistent with
Sibanye-Stillwater’s historical safety performance
and it has been heartening to observe the manner
in which management responded to the Group-
wide crisis. As a result of swift short-term measures
by management and other stakeholders, and
the subsequent implementation of longer-term
safe production initiatives, which are described in
more detail later in this report, Sibanye-Stillwater’s
industry leading safety performance was
re-established and improved in H2 2018.
On 1 March 2019, the Group recorded more than
seven million fatality-free shifts since mid-August
2018, and on 6 March 2019, the SA gold and
PGM operations combined, also achieved seven
million fatality-free shifts. Both these milestones
were record performances for these operations.
These are commendable achievements considering
the deep levels at which a significant proportion
of our mining is conducted across the Group,
and the number of people who operate in this
environment on a daily basis. These achievements
are in stark contrast to what we experienced in the
first half of 2018.
While this performance has restored and improved
on Sibanye-Stillwater’s historical industry-leading
safety record, we are conscious that we operate in
a dynamic environment, which can change rapidly.
As such we require continual vigilance, review
and innovation to ensure ongoing improvement
towards our ultimate goal of zero harm in the
workplace. While the reduction in injury rates since
August 2018 gives us confidence that the safety
enhancement programmes we have implemented
are proving effective, we remain focused on
maintaining our position as the benchmark safety
performer in the South African gold and PGM
mining industries.
Following the unbundling by Gold Fields
and establishment of the organisation as an
independently listed entity on 11 February
2013, the management of Sibanye-Stillwater
was successful in the turnaround of the mature
gold assets we inherited in 2013 into strongly
cash-generative operations, with significantly
extended operating lives. This facilitated the
transition of the Group into a multi-commodity,
precious-metals mining company. This was initially
achieved through the acquisitions of the Aquarius
and Rustenburg platinum operations in 2016
and, subsequently, the acquisition of the high-
quality US-domiciled Stillwater Mining Company
(Stillwater) in 2017. Sibanye-Stillwater became a
globally diversified precious-metals producer with
a unique commodity mix and truly international
geographic footprint.
The transformative Stillwater acquisition not only
secured exposure to low-cost primary palladium-
rich assets and significant production growth
from the Blitz project at an attractive stage in the
PGM price cycle but also included a world-class
precious-metals processing and recycling business,
giving it direct access to PGM end-user markets,
which is of strategic significance.
Sibanye-Stillwater Integrated Report 2018 21
Sello Moloko
Chairman
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION PERSPECTIVE FROM THE CHAIR CONTINUED
SIBANYE-STILLWATER’S GROWTH TRAJECTORY
Gold operations
turned around
Cooke and Wits
Gold acquisitions
provided access
to surface tailings
assets and the
Burnstone project
Rustenburg
and Aquarius
acquisitions
establish Sibanye-
Stillwater as a
leading PGM
producer
Acquisition of
Stillwater –
creates a globally
competitive
precious metals
major
Future
mine-to-market
PGM business in
South Africa
“The commitment
expressed by ANC
leadership to root
out corruption, and
the transparent
manner in which the
various commissions
of enquiry have
been allowed
to progress, is
extremely positive”
Our continued belief and commitment to our
long-term future in South Africa was underscored
by the announcement, in December 2017, of
our intention to acquire Lonmin. The integration
of Lonmin into our existing SA PGM business,
is expected to unlock additional value for
stakeholders, including through the realisation of
attractive synergies, and overhead and processing
synergies with Lonmin’s PGM processing smelting
and refining operations. This would complement
and strengthen our existing SA PGM mine-
to-market strategy, which was also recently
achieved through the transition of the processing
arrangement for our Rustenburg operations’ PGM
concentrate with Anglo American platinum, from
a Purchase of Concentrate (PoC) arrangement
to a toll processing arrangement from 1 January
2019. These are key components in delivering the
fifth element of our planned growth trajectory
illustrated above.
While the operating environment in South Africa
remains challenging, with the uncertain outlook
for the unstable state utility Eskom posing the
greatest risk to industry sustainability, the transition
in leadership of the ANC, and subsequently the
South African government, in late 2017 and early
2018 respectively, has ushered in a renewed sense
of optimism in the outlook for the South African
economy and the industry.
Indeed, the initial signs following this transition
have been generally positive. The government has
a renewed commitment to economic growth with
President Ramaphosa actively pursuing a target
of US$100 billion in new investment. There also
seems to be a greater commitment to addressing
regulatory shortcomings and tackling under-
delivery of services and mismanagement at state-
owned enterprises.
Unfolding revelations of deep-rooted and
widespread corruption have threatened to cloud
these positive signs as political manoeuvring
by radical and vocal elements within the ANC
and the opposition parties, feeds ongoing
uncertainty. However, the commitment expressed
22
Sibanye-Stillwater Integrated Report 2018
by the government to root out corruption, and
the transparent manner in which the various
commissions of enquiry have been allowed to
progress, is extremely positive. It may be too early
to firmly say that South Africa is back on the path
of progress it embarked upon in 1994 but, for the
first time in a decade, the outlook for South Africa
seems more positive.
For the South African mining industry, specifically
the appointment of Gwede Mantashe, a mining
veteran who understands the complexities of
the industry, as Minister of Mineral Resources in
early 2018, has improved relations between the
industry and the regulators across the board.
Among the first initiatives undertaken by Minister
Mantashe was the redrafting of the punitive
Mining Charter gazetted by the previous Minister
in mid-2016, which had largely undermined the
confidence needed to encourage new investment
and reinvestment in the country’s mines. The
more inclusive and consultative approach has
delivered a revision of the Mining Charter, which,
while not perfect, is much-improved.
The general improvement in relations between the
South African mining industry and its regulatory
authorities is welcome. The continuation of
this more co-operative and collaborative policy
and regulatory environment suggests a more
constructive outlook for future investment and
growth in the local mining industry.
Sadly, though relations with organised labour
and communities remain strained. The triple
developmental challenges of unemployment,
inequality and poverty in South Africa, which have
been compounded by a slowdown in growth and
poor service delivery, pose a significant threat to
social stability in South Africa, and directly threaten
the sustainability of the mining industry. The
mining industry’s ability to continue to shoulder
an ever-increasing responsibility to deliver services
and infrastructure to communities is limited and
uncompetitive, and needs to be addressed with
some urgency.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Investors cite the complex and often hostile
industrial relations environment in South
Africa as a significant impediment to
investment. The militant actions taken by
some unions, which should be representing
the interests of workers, are perplexing
and destructive. The strike called by the
Association of Mineworkers and Construction
Union (AMCU) on 21 November 2018 at our
SA gold operations is a clear case in point of
negotiating in bad faith.
This strike interrupted the emerging
recovery in the operational performance of
our SA gold operations following significant
disruptions in the first half of 2018. While
ostensibly related to the wage negotiations,
that began in July 2018, we continue to
believe that this violent protest action is
not in the best interests of all stakeholders,
particularly the workers. The strike has
continued into 2019 with the union raising
legal and procedural challenges in order to
maintain and extend the protected status of
the strike. While management plans have
been implemented across the operations in
order to mitigate the impact of the strike
action, our SA gold operations are affected
to varying extents.
Throughout the strike, we continued to
pursue all avenues to bring this unhelpful
strike action to an end and ensure the
well-being of our employees. On 20 March
2019, the Labour Court of South Africa held
that the gold wage extension agreement
concluded on 18 February 2019 with the
National Union of Mineworkers (NUM),
UASA and Solidarity, and extended to
AMCU and other non-unionised employees,
is valid and lawful in terms of Section 23(1)
(d) of the Labour Relations Act 66 of 1995
(S23(1)(d)). As a result of the legally binding
nature of the extension agreement, the
Company proceeded with an independent
verification process to confirm the various
unions’ level of representivity required to
implement the extension agreement. The
court judgement provides a clear path
forward to resolving the ongoing strike in
a manner that does not compromise our
values or undermine our other stakeholders
who have also been negatively impacted by
the AMCU strike action.
Irrespective of the strike action, certain
business units at the SA gold operations
have experienced ongoing losses due to
rising input costs and other operational
factors. Restructuring has become imperative
to establish a sustainably profitable operating
footprint. This led to Sibanye-Stillwater
giving notice on 14 February 2019, in terms
of Section 189A of the Labour Relations
Act, that it would be commencing formal
consultations with employees and other
stakeholders regarding possible restructuring
of specific business units at its SA gold
operations.
Our strategic focus is unchanged, with
ongoing improvements in safe production
and optimisation of our operational
performance at our existing operations. A
critical step in achieving this key objective
will be the successful integration of Lonmin
following the completion of the transaction.
Delivery of these operational imperatives,
along with higher prevailing precious
metals prices, should accelerate Group
deleveraging, which is a necessary step in
addressing market concerns, and facilitate a
rerating in relative value.
The Group’s growth in the PGM markets
provided an informed view of automobile
markets, specifically positioning the Group
to understand and project future powertrain
scenarios in relation to internal combustion
engines, hybrid electric, battery electric and
fuel cell-powered vehicles. The continued
understanding of both automobile market
forces and analysis of likely advances
in battery and powertrain technologies
will provide Sibanye-Stillwater with an
opportunity to continue to leverage off this
knowledge base in order to position Sibanye-
Stillwater to play an ongoing, significant role
in delivery of metals necessary for future
powertrain requirements to the market.
To support the implementation of this
strategic positioning and continued delivery
of value to stakeholders, Sibanye-Stillwater
has agreed to acquire SFA (Oxford),
pending certain conditions. SFA is an
established analytical consulting company
that is a globally recognised authority on
PGMs and has, for several years, provided
in-depth market intelligence on battery
materials and precious metals for industrial,
automotive, and smart city technologies.
The acquisition cost compares favourably
to the cost of setting up a similar analytical
and research group internally but
significantly leapfrogs the time required to
build up the intellectual knowledge.
I am convinced that Sibanye-Stillwater
offers tangible fundamental value and is
strategically positioned to benefit from any
further upside in precious metals prices.
It is imperative that I express my gratitude
to my fellow directors for their guidance
and wisdom in what was a very challenging
year for the Group. I welcome Harry
Kenyon-Slaney to our Board. He has
extensive experience in the mining sector
– in South Africa and internationally – and
his expertise in health and safety, as well as
business transformation programmes, will be
invaluable.
Finally, it would be remiss not to thank
the members of the Sibanye-Stillwater
management team, particularly Neal
Froneman. Under his leadership, the
management team has worked tirelessly
and methodically to create and build a
diversified and sustainable business that
stands high in the ranks of its industry.
They have dealt effectively, confidently and
candidly with the challenges they have
faced. After dealing comprehensively with
unprecedented challenges during 2018, I
look forward to observing the Group going
from strength to strength.
Sello Moloko
Chairman
29 March 2019
Sibanye-Stillwater Integrated Report 2018 23
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CHIEF EXECUTIVE OFFICER’S REVIEW
“We are positive that our
mining improves lives and
our vision to create superior
value for all stakeholders is
unwavering”
Sibanye-Stillwater has undergone many
fundamental changes since it was established in
February 2013, transforming from a gold only
producer with three mines in South Africa into
a globally diversified precious metals producer
with operations and projects in five jurisdictions.
Following the completion of the proposed
acquisition of Lonmin, the Group will rank as one
of the largest primary producers of platinum and
palladium, and associated PGMs, in the world.
What has not changed, however, is our
commitment to our purpose, vision and values. We
are positive that our mining improves lives and our
vision to create superior value for all stakeholders
is unwavering with all of our decisions and actions
underpinned by our CARES values. Of these values
– commitment, accountability, respect, enabling
and safe production – our first, second and third
priority is safe production and the safety, health
and well-being of our employees. The tragic
incidents at our SA gold operations, in the first half
of the year therefore had such a harrowing impact
on the Group as a whole.
The manner in which the Sibanye-Stillwater team
responded to and dealt with the various crises,
which led to a recovery and improvement in the
Group’s safety performance in the second half
of the year, is extremely pleasing. I am confident
that we are well-positioned to continue delivering
superior value to all of our stakeholders and
improving lives through our mining activities.
SAFETY
The anomalous spate of tragic safety incidents that
we primarily experienced at the SA gold operations
in the first eight months of 2018, which resulted in
the deaths of 24 of our colleagues in South Africa,
is unprecedented in the history of our organisation
and contrary to our previous industry leading
safety performance.
Two separate incidents in particular, at our
Driefontein and Kloof operations, resulted in the
disastrous loss of 12 of our colleagues. The first,
a seismic event at Driefontein’s Masakhane shaft
on 3 May 2018, resulted in severe damage to the
workings. While six employees were thankfully
rescued, seven of our employees were fatally
injured. Soon after this incident, on 11 June 2018
at our Kloof Ikamva shaft, five employees
succumbed to heat exhaustion when a shift
boss inexplicably led his team into a temporarily
suspended and appropriately barricaded area,
contrary to company policies. These incidents
remain subject to investigations by the Department
of Mineral Resources and we are assisting the
regulators with those investigations.
We continue to mourn the 24 colleagues we lost
in 2018 and our heartfelt condolences go to the
families, friends and colleagues of Chicco Elmon
Dube, Solly Ngobeni, Matela Mating, Zanempi
Mncwanazi, Otshepeng Ernest Ramosito, Ntokozo
Elias Ntame, Mlungisi Vukuthi, Luke Bongumusa
Mngomezulu, Baptista Paulino Cuambe, X-Mas
Madikizela, Mbulelo Albert Sonqowa, Thabo
Abram Ntsekhe, Nkosiphendule Dudlela, Luis
Ernesto, Lumbe Gazala, Lingani Innocent Mngadi,
Lakhi Msada, Mthokozisi Msutu, Cedrick Nkuna,
Kholekile Phelile, Thokozani Tembe, Bhekithemba
Thembinkosi Ndabeni, Grace Mlambo and
Philemon Mngakana. Our deceased colleagues
remain in our thoughts and we will continue
doing what is appropriate and right to support the
dependants of the deceased.
In response to the crisis, we took immediate, well-
defined steps to enhance the safety performance
at our SA gold operations in particular. Near-
term, high-impact measures were vigorously
implemented across the operations and medium-
to long-term safe production initiatives were
developed, including inter alia:
• the development of a Zero Harm Strategic
Framework through multi-stakeholder
collaboration during three safety summits,
which were convened by Sibanye-Stillwater
– the safety summits are ongoing while joint
implementation task teams monitor and report
on progress made in the priority areas that were
jointly identified by stakeholders at the summits
• the constitution of our Global Safe Production
Advisory Panel, comprising five leading globally
recognised safety experts, to assist in adopting a
more forward-looking position that anticipates
the emergence of new leading safety practices
• investing in the identification and development
of new safe production technologies through
the DigiMine partnership with the University
of Witwatersrand, complemented by a
Neal Froneman
Chief Executive Officer
24
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “Virtual Centre of Excellence in Innovative Safe
Production”, which is made up of a global
academic network of 19 leading mine safety
experts who will contribute to enhancing
modernisation for safe and sustainable production
Taking into consideration the substantial behavioural
component involved in many fatal incidents in
the mining industry, the desire to review our
organisational culture and leadership to ensure that
safety is inculcated as the foremost consideration in
decisions at all levels, was identified as a continued
priority. In this regard, a core strategic thrust over
the course of the next three years will be to further
develop a values-based organisational culture that
supports safe production and delivery of our strategy
by continuing to instil our CARES values as the
context within which we make all our decisions as
a cornerstone of culture transformation.
For further detail on what is being done to ensure
our workplaces are safe, and to address safety
behaviour and performance, see Ensuring safe
production, and Occupational health and well-
being in this report.
The initial outcomes of these initiatives have
been heartening with the safety performance in
the second half of 2018, across the Group, in
stark contrast to that of the first half. The Group
operations have been fatality-free since mid-
August 2018, recording a total of seven million
fatality-free shifts by 1 March 2019, with the SA
operations also achieving seven million fatality-
free shifts on 6 March 2019. Group combined
injury rates were essentially flat year-on-year with
a slight deterioration in injury rates at the SA gold
operations and the US PGM operations, offset
by a significant improvement in injury rates at
the SA PGM operations where the serious injury
frequency rate (SIFR) improved by 15% – in the
process setting new benchmarks for moderate to
deep-level hard-rock mining in South Africa. These
are commendable achievements considering the
proportion of deep-level mining that is conducted
across the Group and the number of people who
operate in this environment on a daily basis.
This performance has restored and improved
Sibanye-Stillwater’s historic, industry-leading safety
record but we are conscious that we operate in a
dynamic environment, which can change rapidly, as
we experienced in H1 2018, and as such, requires
continuous vigilance, review and innovation to
ensure ongoing improvement towards our ultimate
goal of zero harm in the workplace. Consistent with
our comprehensive approach and commitment to
safe production, following the unfortunate tailings
dam failure in Brazil, we have concluded additional
audits of our tailings storage facilities globally – no
immediate risks have been identified.
“The Group’s
dominant source of
earnings is now our
US PGM operations”
FINANCIAL REVIEW
As a result of the critical impact of the safety
incidents and other unanticipated operational
disruptions as well as the strike (as referred to
by our Chairman in the preceding pages) on
production at our SA gold operations, the Group
delivered a underpar financial performance in 2018.
Our strategic commodity diversification into the
PGM sector and the geographical benefits of the
Stillwater acquisition clearly compensated for the
operational challenges experienced at the SA gold
operations however, with Group adjusted EBITDA
only R676 million (7%) lower year-on-year despite
adjusted EBITDA from the SA gold operations
declining by R3,946 million for the same period.
The Group’s major source of earnings is now
our US PGM operations, which accounted for
approximately 50% of Group adjusted EBITDA of
R8,369 million (US$632 million) in 2018 compared
with R9,045 million (US$680 million) in 2017,
primarily due to the increasing dollar palladium
price and strong PGM operational performance.
The higher rand PGM basket price and sustained
operational performance from the SA PGM
operations also resulted in the contribution from
the SA PGM operations increasing substantially
from 18% of Group adjusted EBITDA in 2017 to
34% in 2018. The SA gold operations contributed
only 16% of Group adjusted EBITDA in 2018
compared with 59% in 2017.
Profitability (adjusted EBITDA) and R/US$ exchange rate
n
o
i
l
l
i
m
R
3,500
3,000
2,500
2,000
1,500
1,000
500
0
17
16
15
14
13
12
11
$
S
U
R
:
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
SA gold
SA PGM
US PGM
Average rand: US$ exchange rate
Consistent with our three-year strategic goals,
proactive steps to address our balance sheet
leverage were also taken during the year with the
US$500 million stream transaction, secured in
July, of which the largest portion was successfully
applied towards reducing US$400 million of long-
term debt. Significant progress on our deleveraging
strategy was, however, delayed by the sharp decline
in adjusted EBITDA from our SA gold operations in
2018 with the Group’s net debt to adjusted EBITDA
(net debt:adjusted EBITDA) ratio of 2.5x at the end
of 2018 only marginally improved on the position
at the end of 2017. Having secured an extension
of the 3.5x net debt:adjusted EBITDA ceiling until
Sibanye-Stillwater Integrated Report 2018 25
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
CHIEF EXECUTIVE OFFICER’S REVIEW CONTINUED
the end of 2019 and a covenant holiday for Q1
2019, we have sufficient headroom on our lender
covenants and our liquidity remains adequate.
Ongoing strength in spot precious metals prices
in 2019 is expected to support our deleveraging
efforts in the coming year.
Group adjusted free cash flow 1 (FCF) was
similarly impacted by the operational disruptions
experienced by the SA gold operations.
The Group recorded negative FCF of R12 million
(US$1 million) for 2018, which was an
R851 million (US$64 million) improvement relative
to the comparable period in 2017 with negative
FCF of R1,093 million (US$83 million) from
the SA gold operations, offset by a tenfold
increase in FCF from the SA PGM operations to
R881 million (US$67 million) and FCF from the US
PGM operations of R387 million (US$29 million),
which was significantly higher than negative FCF
of R483 million (US$36 million) for 2017. The
significant increase in precious metals prices in
2019 thus far, if sustained, will have extremely
positive implications for Group FCF in 2019.
OPERATIONAL REVIEW
US PGM operations
Mined 2E PGM production for the year of
592,608 2Eoz was towards the upper end of
guidance for the year, reflecting the ongoing build-
up of production at Blitz and record production
from the East Boulder mine with All-in-sustaining
cost (AISC) of US$677/2Eoz in line with
annual guidance.
The Columbus Metallurgical Complex performed
steadily in 2018, processing 619,683oz of mined
2E PGM and 686,592oz of recycled 3E PGM,
despite the rebuild and expansion of the second
electric furnace (EF2) restricting processing flexibly.
Recommissioning of EF2 in January 2019 will add
smelter capacity and significantly enhance flexibility
for the rest of the year. The recycling division
averaged 22.0 tonnes of feed material per day in
2018, compared with an average feed rate of
24.2 tonnes per day in 2017. This was a noteworthy
achievement, given the smelting constraints
experienced by the complex during the year.
After regressing in the first half of 2018, the
palladium price regained its momentum in August
2018 with palladium and rhodium ending the
year strongly. The 9% year-on-year increase in
the average 2E PGM basket price received to
US$1,007/2Eoz, coupled with the strong operating
performance, boosted adjusted EBITDA from the
US PGM operations for 2018 to US$314 million
(R4,152 million) from US$161 million
(R2,143 million) in 2017 with the adjusted
26
Sibanye-Stillwater Integrated Report 2018
EBITDA margin of the underground operations
increasing from 43% for 2017 to 46% for 2018
and the adjusted EBITDA margin for the US
PGM operations as a whole (including the lower
margin recycling operations) increasing from
23% for 2017 to 26% for 2018. The continued
rise in the palladium spot price in 2019, which
increased by 37% from an average PGM basket
price for 2018 of US$1,007/2Eoz to a spot price
of US$1,375/2Eoz, if maintained will have a
considerable enhancement to profitability from the
US PGM operations.
The production build-up at Blitz remains on
schedule with three stope blocks successfully
commissioned in 2018. Two additional stopes are
scheduled for commissioning in 2019, which are
expected to add a further 40,000 2Eoz to 60,000
2Eoz to annual production. A total of 10 producing
areas or stopes are expected to be commissioned at
Blitz by late 2021, adding 300,000 2Eoz of annual
production, on average, from 2022.
Continuous improvement and optimisation of
operational performance is a core focus area
across the Group and incremental expansion of
production at the East Boulder mine, the Fill the
Mill (FTM) project, was recently approved by our
Board. The FTM project is expected to deliver
approximately 40,000oz of 2E PGM annually
from late 2020 through incremental expansion
of mining and certain support facilities at the
East Boulder mine and Columbus Metallurgical
Complex with the additional production from FTM
expected to reduce operating costs at East Boulder
by approximately 5% over the project’s 10-year
operating life.
SA PGM operations
The SA PGM operations continued to perform
strongly with full-year 4E PGM production of
1,175,672oz for the year ended 31 December
2018, exceeding the upper limit of guidance, and
average AISC well below the lower guidance limit
of R10,750/4Eoz (US$825/4Eoz).
Despite ongoing weakness in the platinum price,
the average 4E PGM basket price of R13,838/4Eoz
(US$1,045/4Eoz) in 2018 was 10% higher than it
was in 2017, primarily due to significant increases
in palladium and rhodium prices (which comprise
approximately 31% and 9% of the 4E prill split
respectively) and a weaker rand exchange rate.
The significant leverage of the SA PGM operations
to the higher basket prices, as a result of a
disciplined operating performance, is evident in
the 67% year-on-year increase in adjusted EBITDA
to R1,881 million (US$136 million) for H2 2018.
Similarly, adjusted EBITDA for the full year of
“Continuous
improvement
and optimisation
of operational
performance is a
core focus area
across the Group”
1 Adjusted free cash flow is
defined as net cash from
operating activities before
dividends paid, net interest paid
and deferred revenue advance
received less additions to
property, plant and equipment,
and is not an IFRS measure. For
a reconciliation of net cash from
operating activities to adjusted
free cash flow, see the Annual
Financial Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “In line with
Sibanye-
Stillwater’s
mine-to-market
PGM strategy”
R2,882 million (US$218 million) was 81% higher
than it was in 2017 with the adjusted EBITDA
margin increasing from 12% in 2017 to 19% in
2018. As with the US PGM operations, at the spot
4E PGM basket price of R17,670/4Eoz at close
of day on 6 March 2019, the proforma adjusted
EBITDA from the SA PGM operations would have
been approximately 100% higher at
R3,812 million (US$268 million).
Impact of changes to processing
arrangements for Rustenburg operation
from 1 January 2019
In line with Sibanye-Stillwater’s mine-to-market
PGM strategy and according to the processing
agreements with Anglo American Platinum,
the processing arrangement for Rustenburg
production changed from a PoC arrangement to a
toll processing arrangement from 1 January 2019.
In terms of the PoC arrangement, Sibanye-Stillwater
delivered metals concentrate from the Rustenburg
operations to Anglo American Platinum for smelting
and refining and Anglo American Platinum retained
a percentage of the metal-in-concentrate as
payment for processing the concentrate. The cost
of this PoC charge was offset against revenue and
reflected as an equivalent discount to the 4E PGM
basket price received.
In terms of the toll arrangement, Sibanye-Stillwater
will pay an agreed rate to Anglo American
Platinum to smelt and refine concentrate from
the Rustenburg operation but will own and sell
all the refined metal produced. From a reporting
perspective, Sibanye-Stillwater will no longer
reflect a discount in its revenue and will receive the
full average 4E PGM basket price although costs
and unit costs will be higher than under the PoC
arrangement, reflecting the additional tolling costs.
At the current spot 4E PGM basket price, the net
result of this contractual change has a positive
financial impact with the increased revenue more
than offsetting the additional toll cost and, as a
result, beneficial commercially and strategically.
The change in the arrangement, however, results
in a delay in the recognition of revenue due to
the point of sale being extended to the end of the
processing pipeline, which affects the recognition
of revenue for 2019.
Under the PoC arrangement, a sale was recognised
and accounted for on delivery of concentrate
to Anglo American Platinum as the control
transferred to Anglo American Platinum pursuant
to the sales contract. The sale price was previously
determined on a provisional basis and adjustments
to the sale price were made, based on movements
in the metal prices up to the date of final pricing.
Under the toll arrangement, a sale will only be
accounted for after the refined metals are sold,
approximately four months after delivery of the
concentrate to Anglo American Platinum. From an
accounting perspective, this is the point when the
control is transferred to the customer.
This change has resulted in:
• the revenue recognition cycle being delayed with
minimal revenue and earnings recognised from
the Rustenburg operation during Q1 2019 and
an associated deferral of the recognition of costs
• a permanent increase in inventory and a similar
reduction in trade receivable balances so the net
impact on working capital is minimal
• cash flow is largely unaffected
As a result of these changes, adjusted EBITDA
from the Rustenburg operation will not be
recognised during Q1 2019, which will impact our
net debt:adjusted EBITDA leverage ratio during
the transition of the commercial arrangements.
Following further discussions with our lenders, a
covenant holiday for Q1 2019 has been agreed.
We consequently have sufficient headroom on our
lender covenants and liquidity remains adequate.
SA gold operations
As announced on 1 August 2018, all conditions
precedent to the DRDGOLD transaction were met
and the transaction was implemented on 31 July
2018. Sibanye-Stillwater consolidated DRDGOLD
in its operating and financial results from 1 August
2018 and the current operating results include
1,870kg (60,122oz) from DRDGOLD.
Total gold production, including DRDGOLD,
declined by 16% year-on-year to 36,600kg
(1,176,700oz) primarily due to the impact of the
anomalous H1 2018 safety incidents and other
operational disruptions (the disruption of electrical
power to the Beatrix operations and seismic
damage to infrastructure at the Driefontein 1
and Kloof 3 shafts) and the AMCU strike in the
second half of the year, as well as cessation of
underground mining at the Cooke operations in
late 2017, which accounted for 956kg (30,736oz)
or 32% of the reduction. On a like-for-like basis,
gold production (excluding DRDGOLD and the
Cooke underground operations) also declined by
16% year-on-year to 34,676kg (1,114,800oz).
The impact of the 16% decline in production
year-on-year is evident in the 15% increase in AISC
for 2018 to R557,530/kg (US$1,309/oz) despite
cost of sales before amortisation and depreciation
(including DRDGOLD and the Cooke underground
operations) remaining flat year-on-year.
Sibanye-Stillwater Integrated Report 2018 27
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “Sibanye-
Stillwater’s
transition from
a South African
gold producer
to a diversified
global precious
metals producer
was well-timed”
CHIEF EXECUTIVE OFFICER’S REVIEW CONTINUED
The significant fixed overhead cost component
(over 80% of operating costs) for the SA
gold operations makes costs very sensitive to
production volume changes. As a result, unit costs
such as AISC invariably increase with reductions in
production volumes.
The average received rand gold price for 2018
of R535,929/kg (US$1,259/oz) was flat year-on-
year. Combined with the significant decline in
production, this resulted in adjusted EBITDA
from the SA gold operations declining to
R1,362 million (US$103 million) from
R5,309 million (US$399 million) in 2017.
SECTION 189A
While the profitability of the SA gold operations
is currently distorted by the production impact
of the safety incidents and ongoing strike
action, there are fundamental profitability issues,
particularly at the Driefontein 2, 6, 7 and 8 shafts
and at Beatrix 1 shaft. These will be addressed
through consultation with stakeholders in terms
of Section 189A of the Labour Relations Act.
Notice in this regard was given to stakeholders on
14 February 2019.
This follows notices issued under Section 52(1)(a) of
the Mineral and Petroleum Resources Development
Act in October 2018 in respect of Beatrix and
Precious metals price performance (%)
Driefontein, advising stakeholders of the marginal
profitability of the mining rights that should have
prompted engagements with the stakeholders on
each of the mines about measures that could be
taken to secure improved financial sustainability.
Sadly, such constructive engagements did not
transpire as strike-related issues dominated the
intervening period.
Through the formal Section 189A consultation
process, Sibanye-Stillwater and affected
stakeholders will together consider measures to
avoid and mitigate possible retrenchments of up
to 5,780 employees and 800 contractors, and
seek alternatives to the potential cessation or
downscaling of operations at the affected shafts.
We are confident that this process will reposition
the SA gold operations for sustainable, profitable
safe production.
STRATEGIC REVIEW
Sibanye-Stillwater’s transition from a South
African gold producer to a diversified global
precious metals producer was well-timed. The
announcements of the Aquarius and Rustenburg
acquisitions in late 2015 preceded a sustained
period of increasing palladium and rhodium prices,
which have risen by over 200% and 370% from
respective low price points in 2016, more than
offsetting the moribund platinum price.
Lonmin transaction
announced
Aquarius and Rustenburg
transactions announced
Stillwater transaction
announced
)
%
(
e
c
n
a
m
r
o
f
r
e
p
e
c
i
r
p
e
v
i
t
a
e
R
l
150
120
90
60
30
0
(30)
(60)
February 2013
March 2019
Gold (US$/oz)
Platinum (US$/oz)
Palladium (US$/oz)
Rhodium (US$/oz)
28
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
“Sibanye-
Stillwater is
expected to
become the
largest producer
of mined platinum
in the world”
The spot rand 4E PGM basket price of
R17,695/4Eoz is approximately 60% higher
than it was when the Aquarius and Rustenburg
transactions were announced with the spot dollar
2E PGM basket price of US$1,375/2Eoz also
approximately 60% higher than it was at the time
of the Stillwater acquisition announcement.
Through these acquisitions, Sibanye-Stillwater has
built a sizeable PGM business producing 1.77Moz
of 4E/2E at a favourable point in the PGM price
cycle. The approximate R34 billion cost of these
acquisitions (when PGM prices were significantly
lower) is at the low end of historical acquisition
prices in the sector and compares favourably
with current market valuations for similar-sized
peers in the PGM industry, which have recently
significantly rerated. Following completion of the
proposed acquisition of Lonmin, it is expected
that Sibanye-Stillwater will become the largest
producer of mined platinum in the world, the
second largest producer of palladium globally
after Norilsk Nickel, and joint largest rhodium
producer with Impala Platinum Holdings. On
a gold equivalent basis, Sibanye-Stillwater
remains extremely relevant, ranking third behind
the proposed Newmont Mining Corporation/
Goldcorp and Barrick Gold Corporation.
On 14 December 2017, we announced an all
share offer to acquire 100% of Lonmin. Despite
achieving a number of significant milestones
during the year, including the approval of the
United Kingdom Competition and Markets
Authority and the South African Competition
Tribunal, subject to specific conditions, an appeal
against the Competition Tribunal ruling by AMCU
on 19 December 2018 has delayed the completion
of the transaction. The Competition Appeal Court
of South Africa has set down 2 April 2019 as the
date for the hearing of the appeal. As announced
on 15 January 2019, Sibanye-Stillwater and
Lonmin have agreed to extend the long-stop
date for completion of the proposed acquisition
to 30 June 2019. Sibanye-Stillwater remains
committed to the proposed acquisition – a logical
step in further progressing our PGM strategy –
which the Board believes will be value-accretive for
Sibanye-Stillwater shareholders.
Further detail on the proposed Lonmin acquisition
is available at www.sibanyestillwater.com/investors/
transactions/lonmin
Ranking of 2018 platinum production (Moz)
Ranking of 2018 palladium production (Moz)
Sibanye-Stillwater
(post-transaction)
1
Amplats
2
Impala
2
Norilsk
2
Northam
2
RBPlats
2
0.7
0.3
0.2
1.48
1.29
1.28
e
r
a
h
s
r
e
p
2
8
.
4
4
R
Norilsk
Sibanye-Stillwater
(post-transaction)
2
1
Amplats
2
Impala
North American
palladium
2
2
0.2
Northam
2
0.1
1.13
0.95
0.89
2.74
e
r
a
h
s
r
e
p
2
8
.
4
4
R
Sibanye-Stillwater pre-Lonmin
Lonmin’s contribution to Sibanye-Stillwater
Sibanye-Stillwater pre-Lonmin
Lonmin’s contribution to Sibanye-Stillwater
Ranking of 2018 rhodium production (Moz)
Ranking of 2018 gold and gold equivalents production (Moz)
Impala
Sibanye-Stillwater
(post transaction)
2
1
Amplats
2
Northam
2
RBPlats
2
18
39
199
196
152
e
r
a
h
s
r
e
p
2
8
.
4
4
R
Newmont and
Goldcorp
Barrick and
Randgold
Sibanye-Stillwater
(post-transaction)
2
2
1,3
AngloGold
2
Freeport-McMoran
2
2.7
3.63
3.3
6.6
6.1
e
r
a
h
s
r
e
p
2
8
4
4
R
.
Sibanye-Stillwater pre-Lonmin
Lonmin’s contribution to Sibanye-Stillwater
Sibanye-Stillwater gold production
Sibanye-Stillwate (pre-Lonmin) gold equivalents
1 2018 full year production from Sibanye-Stillwater proforma Lonmin (September 2018 annuals) excluding recycling volumes – the inclusion of Lonmin
information for 2018 is illustrative only as the Lonmin acquisition has not yet been completed and remains subject to a number of conditions,
including Lonmin and Sibanye-Stillwater shareholder approvals and the approval of the High Court of England and Wales
2 Peer group information using public company filings for platinum, palladium and rhodium reflect primary production (where available) for H1 2018
annualised unless full year numbers were available while compiling these rankings
3 Sibanye-Stillwater gold equivalents completed on a 4E PGM basis, and gold equivalent ounces calculated as PGM basket price in the period
(R14,729/oz)/average gold price (R552,526/kg) in the period multiplied by PGM production (4E) using the Sibanye-Stillwater 2018 prill split
Sibanye-Stillwater Integrated Report 2018 29
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
CHIEF EXECUTIVE OFFICER’S REVIEW CONTINUED
Palladium and rhodium prices have continued
to rise in 2019 to date, underpinned by growing
market consensus that the fundamental outlook
for palladium and rhodium will remain positive for
some years. Palladium is the primary product from
our US PGM operations and forms an important
component of the PGM basket from our South
African PGM mines with rhodium, a critical
component of diesel and gasoline autocatalysts,
only produced in commercially relevant quantities
in southern Africa.
The outlook for platinum is similarly constructive
although a meaningful increase in the platinum
price is still a couple of years out – by our
estimation. Demand remains firm and a lack of
capital investment in the South African mining
industry, since the global financial crisis, is beginning
to impact supply with a number of mine closures
announced in the past two years. The rapid increase
in palladium and rhodium prices has resulted
in palladium trading at a more than US$650/oz
premium over platinum, for the first time in more
than a decade, which is significantly higher than
the US$400/oz to US$500/oz price we expected to
incentivise substitution. Indeed there are nascent
signs that testing of platinum as a partial substitute
for palladium is taking place. Consistent with our
long-held outlook for platinum, this implies an
improvement in future demand although it is likely
to only occur over a period of two or three years.
The outlook for gold is similarly positive albeit more
muted than the very solid PGM fundamentals.
Global political and economic uncertainty is likely
to persist for some years to come, which has
historically been supportive of gold demand and
the gold price. Despite the recent operational
challenges we have experienced, we remain
committed to our SA gold operations and to
restoring these quality assets to profitability once
the AMCU strike has concluded.
The gold assets we inherited – Beatrix, Driefontein
and Kloof – have created significant value for
stakeholders since the unbundling of Sibanye Gold
by Gold Fields. When Sibanye Gold listed, reserves
were stated as 13.5Moz with an approximate
operating life of eight to 10 years. Since then, our
SA gold operations have produced approximately
8.6Moz of gold (approximately 64% of the initial
reserves) and enabled us to build a substantial,
long-life PGM business while returning over
R4.1 billion in dividends to shareholders (at an
average 4.9% dividend yield over a five-year
period), which is approximately 40% of our market
capitalisation on listing. Moreover, after producing
8.6Moz of gold in the past six years, gold reserves
of 16.6Moz at the end of 2018 are still 23% higher
than they were when Sibanye Gold was constituted.
30
Sibanye-Stillwater Integrated Report 2018
“Quality assets
provided a solid
base from which
we were able
to build a large
globally diversified
precious metals
company”
These quality assets provided a solid base from
which we were able to build a large globally
diversified precious metals company and will
continue to contribute to the Group once the
operations have normalised.
NET ASSET VALUE
Sibanye-Stillwater has, through a series of
favourably priced acquisitions at a low inflection
point in the PGM price cycle, built a sizeable PGM
business, which offers significant upside to a
higher price environment.
The significant increase in the palladium and
rhodium prices since these acquisitions were
made, combined with consistent delivery of solid
operational results, in our view, will result in
significant value being delivered to all stakeholders.
At current market consensus commodity prices
and exchange rates, and based on our life of mine
(LoM) plans (discounted at an average rate of
approximately 7.5% real), we have determined
a net asset value (NAV) for the Group of
approximately R80 billion. At spot precious metals
prices (at 18 February 2019), the NAV increases to
approximately R110 billion*. Sibanye-Stillwater is
currently trading at a 0.35x price to NAV, which is
substantially lower than the average price to NAV
of its South African gold and PGM peers.
Our primary focus in 2019 will be to ensure that
the inherent value in our NAV flows through
into our share price to reduce the price to NAV
discount through consistent operational and
financial delivery that reflects the benefits of
the improved gold and PGM commodity price
environments and ensures deleveraging of our
balance sheet.
* Aspects beyond management control, such
as volatile commodity prices, cost escalation,
production disruptions, and changes to tax and
other regulations, among others, could, however,
materially impact the Group NAV
Sibanye-Stillwater NAV analysis at spot on 18 February 2019 – trading at 0.35x (R million)
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
e
r
a
h
s
r
e
p
0
8
.
5
1
R
e
r
a
h
s
r
e
p
2
8
.
4
4
R
US PGM
operations
(5%)
SA PGM
operations
(7.5%)
SA Gold
operations
(7.5%)
Lonmin
(7.5%)
Group debt
Sibanye-Stillwater
market capitalisation
NAV 2014
model at
2019
Source: Company internal model
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
POSITIONING FOR A NEW WORLD
– SFA (OXFORD)
In order to ensure that the Group is suitably
positioned for continued delivery of value to
stakeholders, Sibanye-Stillwater has agreed to
acquire SFA (Oxford), pending certain conditions,
which is an established analytical consulting
company, a globally recognised authority on PGMs,
providing in-depth market intelligence, for several
years, on battery materials and precious metals for
industrial, automotive and smart city technologies.
The acquisition cost compares favourably with
the cost of setting up a similar analytical and
research group internally but significantly leapfrogs
the time required to build up the intellectual
knowledge. While Sibanye-Stillwater will have
Board representation consistent with its equity
holding, SFA (Oxford) will continue to operate as
an independent company, providing services to
global clients on metal market analysis. As such
SFA (Oxford) is expected to be operating cost
neutral to Sibanye-Stillwater. Post completion of the
acquisition of SFA (Oxford), Sibanye-Stillwater will
retain an 80% equity stake in the company with the
balance apportioned to employees as an incentive
and retention scheme. In this regard, Stephen
Forrest will remain as Chairman of the SFA (Oxford)
Board and a non-executive director, Jim Sutcliffe,
will be appointed to the SFA (Oxford) Board.
2019 OUTLOOK
The extent and severity of Sibanye-Stillwater’s
challenges in 2018 were unprecedented but, while
we still face a number of challenges, the manner in
which the Sibanye-Stillwater team has responded
to and dealt with various crises gives me confidence
that we are well-positioned to continue delivering
superior value to all of our stakeholders.
Our significant investment in the PGM industry
was not made lightly and was against conventional
market wisdom. The fruits of this contrarian,
but carefully considered, strategy have already
delivered tangible benefits, which are not yet
reflected in our market valuation. A positive and
sustainable fundamental outlook for PGMs is being
increasingly accepted, and Sibanye-Stillwater’s
commodity mix and geographical diversification
offers a unique investment opportunity.
I am confident that the Section 189A consultations
with stakeholders regarding the future of certain
shafts at our SA gold operations will result in a
more stable and profitable business segment,
which will contribute positively to Group earnings
in future.
Precious metal prices, particularly palladium and
rhodium, have surged in 2019 with the recent
depreciation of the rand US dollar rate, which is a
significant revenue driver, boosting revenues for
South African mining companies. The operating
environment in South Africa remains challenging
although recent political changes and a
seemingly more investment-oriented approach by
government are positive. While structural changes
have yet to be seen, general sentiment about the
country’s prospects for economic stability and
growth have improved.
I am convinced that Sibanye-Stillwater offers
tangible fundamental value and is strategically
positioned to benefit from any further upside in
precious metals prices.
RECOGNITION
During the past year of disparate challenges, I
have been fortunate to have the support of a team
fully committed to achieving the Group’s strategic
aims and willing at all times to go that extra mile.
My thanks to them are unqualified and I am
confident that their contributions will continue to
be as fulfilling as ever. I am grateful too for the
continuing support and wise counsel of the Board.
Neal Froneman
Chief Executive Officer
29 March 2019
Sibanye-Stillwater Integrated Report 2018 31
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE
ANCILLARY INFORMATION
Contractors working at the Waterfall concentrator at our SA PGM operations
32
Sibanye-Stillwater Integrated Report 2018
CHIEF FINANCIAL OFFICER’S REPORT
• Group loss for the year decreased by 43%
to R2,521 million
• Substantial increase in US and SA PGM
adjusted EBITDA
• US$350 million revolving credit facility (RCF)
refinanced and upsized to
US$600 million on improved terms in April 2018
• US$500 million streaming transaction
completed in July 2018
• US$395 million bond buy back resulting in
US$25 million annual interest saving
• DRDGOLD transaction completed
The facility was refinanced for three years
with two optional one-year extensions
and was increased to US$600 million
on improved terms. In anticipation of
the change in revenue recognition at
Rustenburg operation, where we are
moving from a purchase of concentrate
arrangement to a toll refining agreement,
the Group approached its lending group
to provide further covenant relief. The net
debt to adjusted EBITDA covenant has been
extended at 3.5 times till the end of 2019,
thereafter it will step down to 2.5 times.
Sibanye-Stillwater completed a gold and
palladium stream agreement with Wheaton
Precious Metals International (Wheaton
International) in July 2018. In terms of the
agreement, Sibanye-Stillwater received
US$500 million from Wheaton International
in exchange for an amount of gold and
palladium equal to a percentage of gold
and palladium produced from our US PGM
operations (comprised of its East Boulder
and Stillwater mining operations). The
US$500 million arising from the transaction
was competitively priced relative to existing
Group debt and alternative financing
available in international capital markets.
A portion of the advanced proceeds of the
streaming transaction of US$500 million
was utilised to buy back US$415 million of
the high yield and convertible bonds for a
nominal consideration of US$395 million.
The buyback has resulted in an annual
interest saving of US$25 million and a saving
of US$137 million over the remaining life of
these bonds.
From an operational perspective, the rand
gold price received for 2018 was in line with
2017 at R535,929/kg. The impact of the safety
incidents and other unanticipated operational
disruptions as well as the strike, caused
production from the SA gold operations to
decrease by 7,034kg (226,157oz).
The Group’s major source of earnings
for 2018 was our US PGM operations,
which accounted for 50% of Group
adjusted EBITDA. The contribution from
the SA PGM operations has also increased
substantially, due to the improved rand
PGM basket price and solid, sustained
operational performance. In 2018 the
SA PGM operations contributed 34% of
Group adjusted EBITDA, up from 18% in
2017. Despite a flat average rand gold price
received year-on-year, the impact of the
safety incidents and other unanticipated
operational disruptions as well as the
strike, caused production from the SA
gold operations to decrease by 7,034kg
(226,157oz), resulting in adjusted EBITDA
from the SA gold operations declining
by 74% to R1,362 million. The SA gold
operations contributed only 16% of Group
adjusted EBITDA in 2018, compared with
59% in 2017.
The liquidity requirements of the Group
were substantially improved through the
refinancing of the three-year US$350 million
RCF in April 2018.
Bond buy-backs during 2018 (US$ million)
Charl Keyter
Chief Financial Officer
2018 will be remembered as one of the more
challenging years for Sibanye-Stillwater. The
safety incidents at our SA gold operations
in the early part of the year as well as the
extended strike action at these operations,
which started on 21 November 2018, had
a significant impact on the financial results
of the Group. In stark contrast to this, the
PGM operations in southern Africa and the
United States maintained steady operating
performances with revenues benefitting from
higher palladium and rhodium prices in 2018.
The well-timed entry into the PGM sector is
clearly evident in the financial results, with
solid operating and financial performance of
our PGM operations compensating for the
operational and industrial relations challenges
experienced at the SA gold operations.
600
500
400
300
200
100
0
2022
Bond @ 6.125%
2023
Convertible Bond @ 1.875%
2025
Bond @ 7.125%
Remaining
Buy-back
Sibanye-Stillwater Integrated Report 2018 33
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CHIEF FINANCIAL OFFICER’S REPORT CONTINUED
The average rand basket price received at
the SA PGM operations was 10% higher
at R13,838/4Eoz in 2018, compared with
R12,534/4Eoz in 2017. The SA PGM
operations performed strongly with 4E PGM
production of 1,175,672oz in 2018, compared
with 1,194,348oz in 2017 mainly due to
lower surface production. The US dollar
average basket price received at the US PGM
operations was 9% higher at US$1,007/2Eoz
compared with US$927/2Eoz in 2017. 2E
PGM production at 592,608 was 57% higher,
reflecting the increased contribution from Blitz
and the inclusion of a full year compared with
eight months in 2017.
Cost performance at the SA PGM operations
was again pleasing during 2018. The AISC
at the SA PGM operations at R10,417/4Eoz
was in line with the cost performance of
2017 at R10,399/4Eoz. The AISC at the US
PGM operations increased by 4% for 2018 to
US$677/2Eoz mainly due to the frontloading
of skills for Blitz, increased royalties due
to the improved basket price, higher
maintenance cost and planned outages in
the metallurgical complex. Unit costs at the
SA gold operations were primarily affected by
the safety incidents and other unanticipated
operational disruptions as well as the strike.
The AISC increased from R482,693/kg in
2017 to R557,530/kg.
Capital expenditure increased from
R6,099 million in 2017 to R7,081 million in
2018 mainly due to the inclusion of a full
year of US PGM expenditure compared with
eight months in 2017. Capital expenditure
at the SA gold operations excluding
DRDGOLD declined from R3,410 million in
2017 to R2,930 million mainly due to the
cessation of mining at the Cooke operations,
reduced expenditure at the Burnstone
project which is on care and maintenance
and the impact of the strike. Capital
expenditure from DRDGOLD included for
2018 was R318 million. Capital expenditure
at the SA PGM operations reduced from
R1,035 million in 2017 to R1,000 million in
2018, mainly due to the deferral of capital in
the first half of 2018, following a period of
low rand basket prices. Capital expenditure
at the US PGM operations for 2018 was
US$214 million (R2,833 million) of which
US$119 million (R1,574 million) was spent
on the Blitz project. This compares to capital
expenditure for the eight months in 2017 of
US$124 million (R1,654 million) of which
US$67 million (R888 million) was spent on the
Blitz project.
34
Sibanye-Stillwater Integrated Report 2018
Consolidated income statement for the year ended 31 December 2018
Figures in million – SA rand
Revenue
Cost of sales
Interest income
Finance expense
Share-based payments
Gain/(loss) on financial instruments
Gain on foreign exchange differences
Share of results of equity-accounted investees after tax
Other income
Other costs
Gain on disposal of property, plant and equipment
Impairments
Gain on derecognition of borrowings and derivative
financial instrument
Occupational healthcare expense
Restructuring costs
Transaction costs
Loss before royalties and tax
Royalties
Loss before tax
Mining and income tax
Loss for the year
Attributable to:
Owners of Sibanye-Stillwater
Non-controlling interests
Earnings per share attributable to owners of
Sibanye-Stillwater
Basic earnings per share – cents
Diluted earnings per share – cents
2018
2017
50,656.4
45,911.6
(48,129.0) (42,182.4)
482.1
415.5
(3,134.7)
(2,971.8)
(299.4)
(231.9)
1,704.1
(1,114.4)
1,169.1
344.2
310.2
292.4
291.6
300.0
(1,015.4)
(932.7)
60.2
40.7
(3,041.4)
(4,411.0)
230.0
–
(15.4)
(1,106.9)
(142.8)
(729.8)
(402.5)
(552.1)
(1,224.3)
(6,981.2)
(212.6)
(398.5)
(1,436.9)
(7,379.7)
(1,083.8)
2,946.6
(2,520.7)
(4,433.1)
(2,499.6)
(4,437.4)
(21.1)
4.3
(110)
(110)
(229)
(229)
The gain on financial instruments of
R1,704 million was mainly due to a
gain on the revised cash flow of the
Burnstone Debt of R805 million, a fair
value gain on the derivative financial
instrument of R678 million, revised
cash flows at the Rustenburg operation
resulting in a decreased purchase price
based on 35% of future cash flows
(R151 million) and a decreased dividend
expectation for our 26% BEE partners
(R250 million).
Interest income increased from
R416 million to R482 million due to
higher average cash balances during
2018 and dividends received from Rand
Mutual Assurance.
Finance expenses increased from
R2,972 million in 2017 to R3,135 million.
Interest on borrowings reduced from
R2,092 million in 2017 to R1,573 million
in 2018 following the close out of the
bridge financing utilised for the Stillwater
acquisition. However, this was offset by
the unwinding of the amortised cost
on the 2022 and 2025 notes and the
2023 convertible bond following the
US$395 million buy back and the
R160 million non-cash finance charge
on the US$500 million streaming
transaction.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Revenue
Figures in millions – SA rand
2018
2017 % change
Total
US PGM operations
SA PGM operations
50,656.4
45,911.6
15,872.8
9,161.6
15,153.6
13,276.4
SA gold operations (excluding DRDGOLD)
18,609.2
23,473.6
DRDGOLD
Group corporate
1,047.5
(26.7)
–
–
10
73
14
(21)
–
–
The Group’s revenue for 2018 of R50,656 million was 10% higher than 2017. Revenue
from the US PGM operations increased by 73% mainly due to the inclusion of a full
year in 2018, compared with eight months in 2017, additional production from Blitz
and a 9% increase in the average US dollar basket price received of $1,007/2Eoz. SA
PGM revenue increased by 14% due to a 10% higher rand basket price received of
R13,838/4Eoz. Revenue from the SA gold operations (excluding DRDGOLD) reduced
by 21% due to 19% lower gold produced as a result of the safety incidents in the first
half of 2018 and the AMCU strikes. The average rand gold price was in line with 2017
at R535,929/kg. DRDGOLD contributed R1,048 million to 2018 revenue following the
successful conclusion of the DRDGOLD transaction in July 2018.
Cost of sales, before amortisation and depreciation
Figures in millions – SA rand
2018
2017 % change
Total
US PGM operations
SA PGM operations
41,515.2
36,482.7
11,720.9
7,011.7
12,096.0
11,591.8
SA gold operations (excluding DRDGOLD)
16,678.3
17,879.2
DRDGOLD
1,020.0
–
14
67
4
(7)
–
Cost of sales, before amortisation and depreciation increased by 14%. Costs at
the US PGM operations increased by 67% due to the inclusion of a full year in
2018, compared with eight months in 2017 and additional production from Blitz.
The increase of 4% at the SA PGM operations was mainly due to above inflation
increases on wages and electricity cost increases partly offset by synergies realised.
The decrease at the SA gold operations was the direct result of the strike action
plans implemented to limit the impact of the AMCU strikes as well as the no work
no pay principle that applies to striking workers.
Adjusted EBITDA of R8,369 million in 2018 decreased by 7% from R9,045 million
in 2017, despite adjusted EBITDA from the US and SA PGM operations increasing
by 94% and 81%, respectively. The 16% decline in gold production resulted
in a 74% decrease in adjusted EBITDA from the SA gold operations. Adjusted
EBITDA includes other cash costs and care and maintenance expenditures. Care
and maintenance at Cooke and Marikana were R564 million and R12 million,
respectively in 2018, compared with R236 million and R13 million, respectively
in 2017. Other costs include corporate and social expenditure of R70 million and
non-production royalties of R105 million for 2018. The adjusted EBITDA margin
for the US PGM underground operations increased from 43% in 2017 to 46% in
2018, primarily due to the surging US dollar palladium price and strong operational
performance. The adjusted EBITDA margin for the SA PGM operations increased
year-on-year from 12% to 19% again, aided by the increase in palladium price.
The SA gold operations adjusted EBITDA margin declined from 23% in 2017 to 7%
in 2018 following the operational disruptions.
See Gearing on page 37
The gain on foreign exchange differences
relates to foreign exchange gains of financial assets
of R2,216 million as the closing exchange rate
at 31 December 2018 of R14.35/US$ was 16%
weaker than R12.36/US$ at 31 December 2017.
This gain was partly offset by foreign exchange
losses on the US dollar borrowing, including
the US$600 million RCF, US$350 million RCF,
convertible bond, derivative financial instrument
and Burnstone Debt of R1,194 million
Impairments
Ongoing losses at certain of the Beatrix and
Driefontein shafts negatively affected group cash
flow and threatened the sustainability and economic
viability of other operations in South Africa. As a
result, a decision was taken to impair the mining
assets of and goodwill allocated to Driefontein
by R2,172 million and R167 million, respectively.
Goodwill allocated to Kloof of R166 million and the
mining assets of and goodwill allocated to Beatrix of
R167 million and R104 million, respectively were
impaired. Development of the Burnstone project
has been deferred to 2020 and, as a result of this, a
decision was taken to impair the mine development
assets by R194 million.
Royalties decreased from R399 million in 2017 to
R213 million in 2018 impacted by the substantially
reduced profitability of the SA gold operations.
Mining and income tax
The deferred tax credit of R3,451 million of
2017 compares with a deferred tax charge of
R989 million in 2018. The deferred tax charge for
2018 is as a result of the changes to the long-
term deferred tax rates of the SA gold operations
and the New Jersey Governor signing a number
of bills implementing numerous tax changes,
which affected the US PGM operations.
The most significant change in the law in the state
of New Jersey (where the US PGM operations are
subject to tax) resulted in tax being calculated
together on all US entities under common control
(greater than 50% voting ownership). This resulted
in an increase in the estimated deferred tax relating
to the US PGM operations and a deferred tax
charge of R1,545 million (US$108 million).
Adjusted EBITDA 2017 vs 2018 (R million)
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
1,287
2,009
9,045
36
8,369
(3,982)
(27)
2017
US PGM
SA PGM
SA gold DRDGOLD
Streaming
transaction
2018
Sibanye-Stillwater Integrated Report 2018 35
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CHIEF FINANCIAL OFFICER’S REPORT CONTINUED
Consolidated statement of financial position as at 31 December 2018
Figures in million – SA rand
Assets
Non-current assets
Property, plant and equipment
Goodwill
Equity-accounted investments
Other investments
Environmental rehabilitation obligation funds
Other receivables
Deferred tax assets
Current assets
Inventories
Trade and other receivables
Other receivables
Tax receivable
Cash and cash equivalents
Total assets
Equity and liabilities
Equity attributable to owners of Sibanye-Stillwater
Stated share capital
Other reserves
Accumulated loss
Non-controlling interests
Total equity
Non-current liabilities
Borrowings
Derivative financial instrument
Environmental rehabilitation obligation and other provisions
Post-retirement healthcare obligation
Occupational healthcare obligation
Share-based payment obligations
Other payables
Deferred revenue
Deferred tax liabilities
Current liabilities
Borrowings
Occupational healthcare obligation
Share-based payment obligations
Trade and other payables
Other payables
Deferred revenue
Tax and royalties payable
Total equity and liabilities
36
Sibanye-Stillwater Integrated Report 2018
2018
2017
69,727.7
54,558.2
6,889.6
3,733.9
156.0
3,998.7
314.4
76.9
64,067.3
51,444.6
6,396.0
2,244.1
–
3,492.4
284.0
206.2
15,195.3
12,004.5
5,294.8
6,833.0
35.2
483.2
3,526.5
6,197.6
35.2
182.8
2,549.1
2,062.4
84,923.0
76,071.8
23,788.4
23,978.4
34,667.0
34,667.0
4,617.2
2,569.0
(15,495.8)
(13,257.6)
936.0
24,724.4
45,566.0
18,316.5
408.9
6,294.2
5.6
1,164.2
168.9
2,529.2
6,525.3
10,153.2
14,632.6
6,188.2
109.9
56.8
7,856.3
303.3
30.1
88.0
19.8
23,998.2
43,635.8
23,992.0
1,093.5
4,678.7
11.3
1,152.5
422.2
3,760.4
–
8,525.2
8,437.8
1,657.5
0.8
12.3
6,690.4
41.9
–
34.9
84,923.0
76,071.8
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Gearing
Figures in millions – SA rand
Borrowings 1
Cash and cash equivalents 2
Net debt 3
Adjusted EBITDA
Net debt 3 to adjusted EBITDA (ratio)
2018
2017
23,768.5
25,205.5
2,499.4
2,029.8
21,269.1 23,175.7
8,369.4
9,045.1
2.5
2.6
1 Borrowings are only those borrowings that have recourse to Sibanye-Stillwater.
Borrowings, therefore, exclude the Burnstone Debt and include the derivative
financial instrument
2 Cash and cash equivalents exclude cash of Burnstone
3 Net debt represents borrowings and bank overdraft less cash equivalents. Net debt
excludes Burnstone Debt, and Burnstone cash and cash equivalents, and includes
the derivative financial instrument.
See adjusted EBITDA on page 35
During July 2018, Sibanye-Stillwater exchanged selected surface gold processing assets
and tailings storage facilities for approximately 265 million newly issued DRDGOLD shares
or 38.05% of the issued share capital of DRDGOLD. Although the Group owns less than
half of DRDGOLD and has less than half of DRDGOLD’s voting power, the Group controls
DRDGOLD as a result of an option to subscribe for a sufficient number of DRDGOLD
ordinary shares to attain a 50.1% shareholding in DRDGOLD at a 10% discount to the 30-
day volume weighted average traded price, which is considered substantive.
Figures in million – SA rand
Transaction with DRDGOLD shareholders (Consideration) 1
Less: Fair value of identifiable net assets acquired
Property, plant and equipment
Environmental rehabilitation obligation funds
Other non-current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Environmental rehabilitation obligation and other provisions
Deferred tax liabilities
Other non-current liabilities
Trade and other payables
Other current liabilities
Plus: Non-controlling interest, based on the proportionate interest
in the recognised amounts of assets and liabilities 2
Goodwill 3
2018
261.4
1,166.8
1,443.2
244.7
28.7
243.5
138.4
282.8
(672.7)
(132.2)
(54.9)
(337.1)
(17.6)
940.3
34.9
1 The purchase consideration was calculated as 61.95% of the fair value of Far West Gold
Recoveries assets and liabilities. The fair value of assets and liabilities, excluding property,
plant and equipment, approximate the carrying value. The fair value of property, plant
and equipment was based on the expected discounted cash flows of the expected ore
reserves and costs to extract the ore discounted at a real discount rate of 13.3%, an
average gold price of R580,000/kg. Although Sibanye-Stillwater exchanged (disposed)
the Far West Gold Recoveries assets and liabilities, the Group effectively retains control.
The transaction with DRDGOLD shareholders, therefore, represents the difference
between 61.95% of the fair value and carrying value of Far West Gold Recoveries assets
and liabilities.
2 Non-controlling interest, based on the proportionate interest (of 61.95%) in the
carrying value of the Far West Gold Recoveries assets and liabilities, and fair value of the
DRDGOLD net assets and liabilities acquired
3 The goodwill is attributable to DRDGOLD’s proven surface treatment capabilities
Sibanye-Stillwater Integrated Report 2018 37
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “The Board believes that
the proposed acquisition of
Lonmin is compelling and
value-accretive for Sibanye-
Stillwater shareholders
and is a logical step in
executing its PGM strategy
in southern Africa”
CHIEF FINANCIAL OFFICER’S REPORT CONTINUED
Proposed Lonmin transaction
On 14 December 2017, the Boards of Sibanye-Stillwater and Lonmin announced
that they had reached agreement on the terms of a recommended all-share
offer pursuant to which Sibanye-Stillwater, and/or a wholly-owned subsidiary of
Sibanye-Stillwater, will acquire the entire issued and to be issued ordinary share
capital of Lonmin.
The Lonmin group is a major mine-to-market producer of PGMs with core
operations in South Africa. It produces PGMs predominantly used in many
industrial applications, and in jewellery and investment, with saleable by-products
including gold, copper, nickel, chrome and cobalt. The Lonmin group is a major
primary producer of PGMs worldwide. Lonmin shares are admitted to listing on the
premium listing segment of the official list and to trading on the main market of
the London Stock Exchange, and have a secondary listing on the JSE main board.
Lonmin also has an American Depositary Receipt programme traded on the over-
the-counter market in the US.
The Board believes that the proposed acquisition of Lonmin is compelling and
value-accretive for Sibanye-Stillwater shareholders and is a logical step in executing
its PGM strategy in southern Africa. By combining Sibanye-Stillwater’s existing,
and contiguous, South African PGM assets with Lonmin’s operations, including
Lonmin’s processing facilities, Sibanye-Stillwater will be able to unlock operational
synergies and complete its strategy to become a fully integrated PGM producer in
South Africa. By combining Sibanye-Stillwater’s existing, and contiguous, South
African PGM assets with Lonmin’s operations, including Lonmin’s processing
facilities, Sibanye-Stillwater will be able to unlock operational synergies* estimated
at R730 million over the first three years while a further R780 million is expected
to be unlocked should the Rustenburg PGM material be treated at the Lonmin
facilities after 2021. We are also confident that this transaction will bring greater
stability to the Lonmin assets, and ensure a more sustainable and positive future.
To date, several of the conditions precedent have been fulfilled including approvals
from the South African Reserve Bank, the UK Competition and Markets Authority,
as well as the South African Competition Commission approval received on
21 November 2018, subject to specific conditions*.
On 19 December 2018, AMCU filed an appeal with the Competition Appeal Court
of South Africa against the South African Competition Commission decision,
which will be heard on 2 April 2019. Sibanye-Stillwater and Lonmin have agreed to
extend the long-stop date for completion of the proposed acquisition from
28 February 2019 to 30 June 2019.
Additional conditions precedent include, inter alia, the approvals of Lonmin and
Sibanye-Stillwater shareholders and the courts of England and Wales.
A circular to Sibanye-Stillwater shareholders and the Lonmin scheme of
arrangement document will be posted to the respective shareholders in due
course. Included in those documents will be the expected dates of the shareholder
meetings and timetable for the closing of the transaction.
* For further information in relation to the expected synergies, refer to pages 17, 58
and 60 of the offer announcement dated 14 December 2017 while full details on the
conditions imposed by the Competition Commission are also available at
www.sibanyestillwater.com/investors/transactions/lonmin
38
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION FOCUS AREAS – 2019
The continued deleveraging of the organisation will be the primary focus for 2019
through earnings growth, cash flow generation and possible alternative financing
solutions which may include pipeline financing. In order to maintain adequate
liquidity, the refinancing of the R6.0 billion RCF, maturing in November 2019, will be
prioritised. The facility will potentially be increased to provide adequate working capital
requirements to the enlarged Group post completion of the Lonmin transaction.
Debt maturity (capital repayment profile) as at 31 December 2018 (US$ million)
2,500
2,000
1,500
1,000
500
0
(500)
342
346
411
190
337
1,626
144
1,482
447
e
r
a
h
s
r
e
p
2
8
.
4
4
R
2019
2020
2021
2022
2023
2024
2025
Lenders extension option
Gross
debt
Net cash
(including
overdrafts)
Net debt Undrawn
facilities
R6bn ZAR RCF
US$600m US$ RCF
US$500m 6.125% 2022 bonds
US$450m 1.875% 2023 convertible
R550m 7.125% 2025 bonds
Gross debt
Net cash (including overdrafts)
Net debt
Undrawn facilities
The strong performance of commodity prices, more specifically palladium, rhodium and
gold and the weakening of the rand against the US dollar, which started in 2018 and
has continued into 2019, should assist with earnings growth and cash flow, which will
have a substantial positive impact on the continued deleveraging.
Commodity prices
Gold price
Spot prices as at
8 March 2019
2018
% change
R535,929/kg
R602,104/kg
SA PGM average basket price
R13,838/4Eoz
R17,785/4Eoz
US PGM average basket price US$1,007/2Eoz
US$1,353/2Eoz
12
29
34
The Group’s main focus on successful closure of the Lonmin transaction will be the
integration of the Lonmin assets and on leveraging the initial cost synergies identified
during the due diligence. High-level planning of the integration effort and the
associated timeline has already started.
ACKNOWLEDGEMENT
I continue to be supported by a strong and diligent finance team across the
Sibanye-Stillwater group. The Group has been able to mitigate some of the adverse
consequences relating to the volatile global environment in which we operate through
proactive responses by the financial team. We continue to provide relevant, qualitative
information and reporting to all our stakeholders that reflect our objectives and values.
I would like to take this opportunity to thank the financial team for their unwavering
support and look forward to 2019.
Charl Keyter
Chief Financial Officer
29 March 2019
Sibanye-Stillwater Integrated Report 2018 39
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
MANAGING OUR RISKS AND OPPORTUNITIES
Sibanye-Stillwater views risk and opportunity
management as an integral element of our
strategy implementation that supports the Group
in performing effectively and building confidence
in the delivery of predictable outcomes in the
dynamic environment in which we operate. A solid
understanding and effective management of our
risks and opportunities, and ensuring we have
appropriate measures in place to mitigate risks and
act on opportunities, will give us a competitive
advantage. By effectively containing risks and
realising opportunities in pursuit of our strategy,
we are able to deliver on our strategic objectives
and generate sustained value for all stakeholders
over time.
Sibanye-Stillwater considers a risk and/or an
opportunity to be material if it substantially affects
our ability to create and sustain value in the short,
medium and long term. The process to identify the
material risks and opportunities facing Sibanye-
Stillwater is three-pronged and involves taking into
account:
• Our external operating environment
• Internal factors that may adversely affect
business performance
• Stakeholder attitudes, concerns and expectations
(see Stakeholder engagement)
Due consideration and understanding of these
factors allows management to identify the most
significant and material issues in terms of their
potential impact on the Group’s ability to achieve
its strategic and business objectives and to create
value. Management evaluates the likelihood and
potential impact of material issues occurring from
multiple perspectives, including strategic, financial
and operational viewpoints, prioritising the most
material and developing appropriate response
plans to mitigate and manage the risks identified.
In this section we report on and discuss first
our risks, how these are identified and how we
mitigate and manage them. This is followed by a
discussion on our approach to opportunities (see
our material opportunities).
Management of our material risks entails identifying
the relevant variables – strategic, external and
internal – and understanding how they might
impact Sibanye-Stillwater’s ability to deliver on our
strategy and achieve our strategic objectives.
OUR RISK MANAGEMENT
FRAMEWORK
Risk management is a continuous, proactive,
dynamic process, designed to identify, understand,
manage and communicate risks that may
impact Sibanye-Stillwater’s ability to achieve its
strategic business objectives. The Group-wide
40
Sibanye-Stillwater Integrated Report 2018
“Sibanye-Stillwater
views risk and
opportunity
management as an
integral element
of our strategy
implementation”
risk assessment process has been enhanced to
ensure that our strategic objectives are included
at all levels of risk determination, and to ensure
alignment across the Group.
The Group-wide assessment process is cascaded
to our major operating segments, which allows
for customised identification and management of
risks to safe production delivery and cash flow from
each operating segment and the contextualising of
these risks at a Group level. Many of the risks that
are material to the Group are consolidated from an
operating segment, commodity or territory specific
risks, with strategic opportunities driven mainly as
part of the Group strategic plan.
GOVERNANCE
Governance oversight of risk and opportunity
management in 2018 included an annual
independent review of Sibanye-Stillwater’s updated
enterprise risk management framework, practices
and systems, and their effectiveness, by external
assurance provider, PwC. The review confirmed
that our risk management framework is compliant
with King IV, ISO 31000 and the Committee
of Sponsoring Organizations of the Treadway
Commission (COSO).
In line with its duties and responsibilities, the Board
of Directors, supported by the Risk Committee,
monitored, reviewed, provided feedback on and
approved the risk management framework, its
components, and the systems and processes
making up enterprise risk management.
An employee inspects one of the tailings storage facilities at the Rustenburg operations
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION The diagram below summarises the framework that is in place to identify material risks.
Identifying our material risks
1 Gathering
initial input
Operating environment
Analysis of factors over which we
have no control that may affect
our ability to deliver on strategic
objectives
Stakeholder engagement
Analysis of issues raised by
stakeholder engagement (see
Stakeholder engagement and
material issues)
Enterprise risk management
Analysis of information from
internal business processes
2 Evaluating
input
Qualitative
Review of risks based on strategic,
financial, non-financial and
operational considerations
Quantitative
Review of risks based on implications for reputation, licence to operate
and compliance
3 Reviewing and
prioritising
4 Determining
material risks
Application of filters for risk determination and allocation of responsibilities to ensure control and further
mitigation
Significant material risks are agreed, ranked and appropriate responses determined
“The Group
is committed
to operating
responsibly in
its pursuit of
creating superior
shareholder value”
FINANCIAL AND INVESTMENT
DECISIONS
• Sibanye-Stillwater will strategically take
on additional leverage in order to increase
shareholder value only where the operational
requirements, through detailed evaluation, are
determined to be outweighed by the benefit
• Sibanye-Stillwater is not willing to accept any
risk that has the potential to cause at least a
500-basis point deviation in margin from the
plan
• As part of evaluating investment decisions or
capital allocations, the Group applies relevant
hurdle rates and discount factors, taking into
account items such as level of study undertaken
on the project or operation and country risk,
among others
RISK ESCALATION
The top 10 risks identified in the risk register are:
• included in or escalated to the Group strategic
risk register
• evaluated for further mitigation measures to
reduce the risk to within the tolerance levels
• reported to the Board
As part of ongoing monitoring of risk
management, the Board deliberated and agreed
on acceptable appetite and risk tolerance levels
for key performance areas. Our risk appetite refers
to the extent of business risk we are willing to
take to achieve our strategic objectives and attain
certain financial and commercial outcomes. In
agreeing our risk appetite, we consider revenue
growth, earnings sustainability, environmental
impact, employee well-being, health, safety, the
environment, human resources, business plan
delivery, licence to operate, ethics and governance.
RISK APPETITE STATEMENTS
The Group is committed to operating responsibly
in its pursuit of creating superior shareholder value.
The following strategic risk appetite statements
provide directional decision support for strategic
decision making in line with this commitment.
HEALTH, SAFETY, SUSTAINABILITY AND
ENVIRONMENT
• Sibanye-Stillwater will strive for zero harm and
to minimise risk by not putting profits ahead of
health, safety, sustainability or environment
• Sibanye-Stillwater strives to exceed industry
standards and to avoid entering operating
environments where health, safety, sustainability
and environment (HSSE) records are not in line
with international norms
• Sibanye-Stillwater seeks to avoid any activity
that will compromise our alignment with
leading industry health, safety, sustainability and
environmental standards
Sibanye-Stillwater Integrated Report 2018 41
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
OUR TOP 10 MATERIAL RISKS
For 2018, we identified and monitored
the following top 10 material risks. Given
the transformative acquisition of Stillwater
concluded in 2017 and the resulting
geographic and product diversity, Sibanye-
Stillwater’s risk profile has substantially
changed. This change is reflected in the
change in our material risks and in regional
differences. Diversification has reduced the
potential impact of certain risks previously
considered material. Further detail on each
risk, its impact on our strategic objectives,
and related mitigation measures can be
found on page 44.
Risk assessments are conducted
across the Group at operating unit,
business unit, region and Group level with
each area continuously monitoring its risk
registers. These risk registers are reviewed
formally by the Risk Committee twice a
year. In 2018, the strategic risk assessments
for the Group, and the US and SA
operations were independently facilitated
by Willis Towers Watson.
The risk methodology applied requires that
the risks are inherently rated to provide a
view of the risk profile. Controls in place are
identified. The risks are then rated to provide
a residual rating.
The top 10 strategic risk inherent and
residual risk rankings are reflected in the
heat maps (opposite).
T
C
A
P
M
I
T
C
A
P
M
I
5
4
3
2
1
5
4
3
2
1
SIBANYE-STILLWATER RISK MANAGEMENT HEAT MAP: INHERENT RISK
1,2,3,5
4,6,7
10
4
5
9
8
3
LIKELIHOOD
1
2
SIBANYE-STILLWATER RISK MANAGEMENT HEAT MAP: RESIDUAL RISK
9
10
1,2,3,4
5,6,7,8
1
2
3
4
5
LIKELIHOOD
In the laboratory at the Columbus Metallurgical Complex in the US
42
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION 1
2
3
4
5
6
7
8
9
Details of the top 10 residual risks identified for 2018 are provided in the table below. Also provided is the risk movement since 2017 and the
new risks identified as a result of our geographical and product diversification.
Top 10 material risks and opportunities in 2018
Ranking
Risk description in 2018
Comparison with 2017
Government actions
Socio-political instability and unrest in
South Africa
Impact of safety incidents, including those
contrary to company policy 1
Mining Charter outcome and Mineral and
Petroleum Resources Development Act
amendments
Under-delivery on operational plans
Incorporates the following risks from 2017:
Further deterioration in South African rating and potential adverse
impact on valuations and cost of financing
Incorporates the following risks from 2017:
Unrealistic expectations for business to uplift communities in
South Africa
Incorporates the following risks from 2017:
Safety, health and environmental incidents
Incorporates the following risks from 2017:
Maintaining and obtaining operating licences and other permits in
uncertain political and regulatory environments
Incorporates the following risks from 2017:
Under-delivery on operational targets owing to external factors
(4)
(8)
(7)
(6)
(9)
Significant PGM, gold and other commodity
price decreases
Global economic downturn or strengthened
US economy
New risk
New risk
Financial covenants and net debt
Organised labour
10
Change in regulatory requirements
Incorporates the following risk from 2017:
Ability to access, service and repay debt due to external and internal
factors that may impact cash flow
Incorporates the following risk from 2017:
Operational disruptions
Incorporates the following risk from 2017:
Adverse regulatory changes and socio-political instability
(2)
(25)
(3)
1 Safety and well-being of our employees is a priority for Sibanye-Stillwater at Group and regional level. As the anomalous spate of fatalities in 2018
is of great concern, a review of the circumstances of each incident was conducted and action was taken to enhance safety practices.
Our Group and regional risk registers include the impact of safety, health and environmental incidents, as well as under-delivery on our plans
among the top 10 Group and/or regional risks.
The Columbus Metallurgical Complex at our US operations
Sibanye-Stillwater Integrated Report 2018 43
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Enhancement action plan
Risk tolerance
Source of risk
• Broad stakeholder engagement
• Favourable minerals
High
Medium • Compliance with
EXTERNAL
Key performance
indicators (KPIs)
Inherent
Residual
risk
rating
risk
rating
• Direct legal challenges to legislation
policy
• Ongoing monitoring of regional
• Participation in organised business
compliance
lobby groups
• Active involvement in business
associations to influence outcomes
of regulatory certainty and policy
making
• Geographical diversity
• Costs of sustaining
social licence
• SA discount on
share price
• Optionality to
address negative
government policy
• Investment in local economic
development
• Community compacts
reduced community
stakeholder
relationships
(evidenced by
protest action
and existence
of compact
agreements)
key laws, legal
requirements and social
requirements for social
and labour plans (SLPs)
and Mining Charter
targets
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
Top 10 risks: Description, impact and related mitigating action
The top 10 risks have been ranked according to their residual risk, based on exposure levels after mitigating
action and controls were applied.
TOP 10 RISKS AND RELATED MITIGATING ACTIONS
Risk and related strategic objectives
Underlying vulnerabilities
Potential consequences and impact on
delivery of strategy
• Policy and regulatory uncertainty in
• Low investor support
South Africa
• Further policy and regulatory
• Nationalisation movement/discussion
uncertainty
• Inability to comply with social
licence and US political climate
• Increased cost of compliance and
doing business
• Loss of international competitiveness
• Lack of investment
• Increased cost/decreased access to
capital
• Decreased revenue and SA
operations’ sustainability
• Failure to meet community
• Business and operational disruption
• Stakeholder engagement
• Improved
High
Medium • Compliance with
EXTERNAL
expectations
• Failure of local economic
development projects
• Community uprising
• Historic area of weakness
• Hijacked by political interests
• High unemployment
• SA clash of vested interests
• Dysfunctional local government
• Safety and security compromised
• Increased costs
• Impact on employee morale
• Unable to deliver on operational
plans
• Reduced cash flow
• Mining licence uncertainty
• Reputational impact
• Company required to play
• Lack of services (including electricity)
government role
and escalating cost of services
• Heightened expectations
• SLP pressure and costs
1. GOVERNMENT ACTIONS
Related strategic objectives:
Addressing our
South African discount
Pursuing value-accretive
growth
For further information, see:
CEO’s review, CFO’s report and Minimising the
environmental impact
2. SOCIO-POLITICAL INSTABILITY
AND UNREST IN SOUTH AFRICA
Related strategic objectives:
Addressing our
South African discount
Focus on safe production
and operational excellence
For further information, see:
CEO’s review, CFO’s report, Stakeholder engagement,
Delivering value from operations, projects and
technology, Ensuring safe production and Occupational
health and well-being
44
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Top 10 risks: Description, impact and related mitigating action
The top 10 risks have been ranked according to their residual risk, based on exposure levels after mitigating
action and controls were applied.
TOP 10 RISKS AND RELATED MITIGATING ACTIONS
1. GOVERNMENT ACTIONS
Related strategic objectives:
Potential consequences and impact on
• Policy and regulatory uncertainty in
• Low investor support
South Africa
• Further policy and regulatory
• Nationalisation movement/discussion
uncertainty
• Inability to comply with social
• Increased cost of compliance and
licence and US political climate
doing business
Risk and related strategic objectives
Underlying vulnerabilities
delivery of strategy
Enhancement action plan
Key performance
indicators (KPIs)
Inherent
risk
rating
Residual
risk
rating
Risk tolerance
Source of risk
• Broad stakeholder engagement
• Favourable minerals
High
Medium • Compliance with
EXTERNAL
• Direct legal challenges to legislation
policy
• Ongoing monitoring of regional
compliance
• Participation in organised business
• Loss of international competitiveness
lobby groups
• Lack of investment
• Increased cost/decreased access to
capital
• Decreased revenue and SA
operations’ sustainability
• Active involvement in business
associations to influence outcomes
of regulatory certainty and policy
making
• Geographical diversity
• Costs of sustaining
social licence
• SA discount on
share price
• Optionality to
address negative
government policy
key laws, legal
requirements and social
requirements for social
and labour plans (SLPs)
and Mining Charter
targets
• Failure to meet community
• Business and operational disruption
• Stakeholder engagement
• Improved
High
Medium • Compliance with
EXTERNAL
• Investment in local economic
development
• Community compacts
stakeholder
relationships
(evidenced by
reduced community
protest action
and existence
of compact
agreements)
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
2. SOCIO-POLITICAL INSTABILITY
AND UNREST IN SOUTH AFRICA
Related strategic objectives:
expectations
• Failure of local economic
development projects
• Community uprising
• Historic area of weakness
• Hijacked by political interests
• High unemployment
• SA clash of vested interests
• Dysfunctional local government
• Safety and security compromised
• Increased costs
• Impact on employee morale
• Unable to deliver on operational
plans
• Reduced cash flow
• Mining licence uncertainty
• Reputational impact
• Company required to play
• Lack of services (including electricity)
government role
and escalating cost of services
• Heightened expectations
• SLP pressure and costs
Sibanye-Stillwater Integrated Report 2018 45
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
Potential consequences and impact on
delivery of strategy
Enhancement action plan
Risk tolerance
Source of risk
Key performance
indicators (KPIs)
Inherent
Residual
risk
rating
risk
rating
3. IMPACT OF SAFETY INCIDENTS, INCLUDING
THOSE CONTRARY TO COMPANY POLICY
Related strategic objectives:
Focus on safe production
and operational excellence
Deleveraging our
balance sheet
For further information, see:
Perspective from the chair, CEO’s review, CFO’s report,
Delivering value from operations, projects and technology,
Superior value for the workforce, Ensuring safe production,
Occupational health and well-being, Corporate governance
and leadership and Remuneration report
4. MINING CHARTER AND
MINERAL AND PETROLEUM RESOURCES
DEVELOPMENT ACT AMENDMENTS
Related strategic objectives:
Addressing our
South African discount
Pursuing value-accretive
growth
For further information, see:
Perspective from the chair, Stakeholder engagement,
Superior value for the workforce, Social upliftment and
community development and Corporate governance
and leadership
46
Sibanye-Stillwater Integrated Report 2018
• Lack of alignment between safety
• Fatalities
• Adoption of the zero harm safety
• Percentage decrease
High
Medium • Improved safety
INTERNAL
performance and values and culture
• Technical complexity
• Depth of operations
• Propensity for high-risk behaviour
• Disregard for rules and procedures
by non-management personnel
• Serious injuries
• Reputational impacts
• Employee morale and engagement
• Damaged relationships (customers,
organised labour, shareholders and
communities)
• Desensitisation to events
• Operational/business disruption
• Safety perceived by some as
exclusively management issue
• Increased regulatory and stakeholder
scrutiny
• Labour-intensive
• Increased expense
• Narrow nature of ore body
• Loss of production
• Mature mines
• Legal consequences
• Fines and penalties
• Sustainability of operations
framework, developed jointly
with the Department of Mineral
Resources and organised labour
in FIFR, SIFR and
LTIFR year on year
• Multi-stakeholder
• Continued focus on enhancing safe
approach
production, based on an enabling
environment and empowered
employees
• Portfolio review
reducing inherent
risk
statistics compared to
prior periods and better
than industry norms
• Low tolerance of
any activity that will
compromise alignment
with industry-leading
health, safety, security
and environment
• Establishment of the Global
Safe Production Advisory Panel
comprising international expects
in the fields of mining and rock
• Continued focus on mine health and
engineering
safety systems
• Continued focus on employee
training and awareness
• Behavioural intervention
• Appropriately skilled appointments
• Safety campaigns
• Safety rewards and recognition
(and consequences for poor safety
performance)
• Participation in industry safety
bodies
• Auditing
• Continued focus on seismic
monitoring systems
• Continued focus on safe operating
standards and procedures
• Safety function
• Board sub-committee/oversight
• Uncertainty around new Mining
• Additional dilution to shareholders
• Broad stakeholder engagement
• Mining Charter
High
Medium • Compliance with
EXTERNAL
Charter
• Charter compliance is requirement
to operate
• Lack of clarity around legal status of
Mining Charter
• Uncertainty of Mining Charter
negotiations
• Trust deficit between business and
communities
• Unrealistic expectations created
in government engagement with
communities
• Uncertain legal tenure over mineral
rights
• Additional cost of compliance
• Further discounts to share price
• Loss of investor confidence
• Increased operating costs
• Lack of access to capital markets
• Change to operating strategy
• Sustainability of SA operations
at risk
• Loss of mining right/licence to
operate
• Direct legal challenges to legislation
• Ongoing regional compliance
monitoring
• Organised business lobby groups
• Active involvement in business
associations to influence outcomes
of regulatory certainty and policy
• Geographical diversity
• Compliance with current Mining
making
Charter
conducive to
competitiveness and
investment
• Costs of sustaining
social licence
• South African
discount on share
price
• Optionality to
address negative
government policy
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
delivery of strategy
3. IMPACT OF SAFETY INCIDENTS, INCLUDING
THOSE CONTRARY TO COMPANY POLICY
• Lack of alignment between safety
• Fatalities
performance and values and culture
Related strategic objectives:
Potential consequences and impact on
• Technical complexity
• Depth of operations
• Propensity for high-risk behaviour
• Serious injuries
• Reputational impacts
• Employee morale and engagement
• Damaged relationships (customers,
• Disregard for rules and procedures
organised labour, shareholders and
by non-management personnel
communities)
• Desensitisation to events
• Operational/business disruption
• Safety perceived by some as
• Increased regulatory and stakeholder
exclusively management issue
scrutiny
• Labour-intensive
• Increased expense
• Narrow nature of ore body
• Loss of production
• Mature mines
• Legal consequences
• Fines and penalties
• Sustainability of operations
Key performance
indicators (KPIs)
• Percentage decrease
in FIFR, SIFR and
LTIFR year on year
• Multi-stakeholder
approach
• Portfolio review
reducing inherent
risk
Inherent
risk
rating
Residual
risk
rating
Risk tolerance
Source of risk
High
Medium • Improved safety
INTERNAL
statistics compared to
prior periods and better
than industry norms
• Low tolerance of
any activity that will
compromise alignment
with industry-leading
health, safety, security
and environment
Enhancement action plan
• Adoption of the zero harm safety
framework, developed jointly
with the Department of Mineral
Resources and organised labour
• Continued focus on enhancing safe
production, based on an enabling
environment and empowered
employees
• Establishment of the Global
Safe Production Advisory Panel
comprising international expects
in the fields of mining and rock
engineering
• Continued focus on mine health and
safety systems
• Continued focus on employee
training and awareness
• Behavioural intervention
• Appropriately skilled appointments
• Safety campaigns
• Safety rewards and recognition
(and consequences for poor safety
performance)
• Participation in industry safety
bodies
• Auditing
• Continued focus on seismic
monitoring systems
• Continued focus on safe operating
standards and procedures
• Safety function
• Board sub-committee/oversight
4. MINING CHARTER AND
MINERAL AND PETROLEUM RESOURCES
DEVELOPMENT ACT AMENDMENTS
Related strategic objectives:
• Uncertainty around new Mining
• Additional dilution to shareholders
• Charter compliance is requirement
Charter
to operate
• Lack of clarity around legal status of
Mining Charter
• Uncertainty of Mining Charter
• Trust deficit between business and
• Unrealistic expectations created
in government engagement with
negotiations
communities
communities
rights
• Uncertain legal tenure over mineral
• Additional cost of compliance
• Further discounts to share price
• Loss of investor confidence
• Increased operating costs
• Lack of access to capital markets
• Change to operating strategy
• Sustainability of SA operations
• Loss of mining right/licence to
at risk
operate
High
Medium • Compliance with
EXTERNAL
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
• Broad stakeholder engagement
• Direct legal challenges to legislation
• Ongoing regional compliance
monitoring
• Organised business lobby groups
• Active involvement in business
associations to influence outcomes
of regulatory certainty and policy
making
• Geographical diversity
• Compliance with current Mining
Charter
• Mining Charter
conducive to
competitiveness and
investment
• Costs of sustaining
social licence
• South African
discount on share
price
• Optionality to
address negative
government policy
Sibanye-Stillwater Integrated Report 2018 47
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
Potential consequences and impact on
delivery of strategy
Enhancement action plan
Risk tolerance
Source of risk
Key performance
indicators (KPIs)
Inherent
Residual
risk
rating
risk
rating
5. UNDER-DELIVERY TO PLAN
Related strategic objectives:
Focus on safe production
and operational excellence
Deleveraging our
balance sheet
For further information, see:
CEO’s review, CFO’s report and Delivering value from
operations, projects and technology
• Under-performance
• Reputational impact
• Planning and review systems
• Reduced variance
High
Medium • Achievement of
INTERNAL AND
• Failure to meet operational targets
• Loss of investor confidence
and stakeholder expectations
• Cash flow generation from
operations
• Highly leveraged and marginal
due to strong Rand and/or low
commodity prices
• Losing competitive edge in
• Low morale
• Job losses
• Inability to repay debt
• Domino effect
• Loss of revenue
• Asset restructuring
South Africa
• Unable to retain key employees
• Volatility of commodity pricing
• Difficulty delivering on community
programmes
• Reduced cash flow
• Poor stakeholder relations
• High fixed costs
• Safety performance
• Organised labour
• Lack of mining flexibility and
technical complexity (such as
seismicity)
• Disengaged employees
• Dependence on key infrastructure
on delivery to plan
targets to business and
EXTERNAL
• Review of SA
gold operations
completed
• Improved grade
projection
implemented at US
PGM operations
operational plans
• Compliance with
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
• Competent people
• Strong regional operational
leadership
• Operating model
• Board oversight
• Role clarity
• Realistic targets
• Flexibility
• Regional organisational structure
• Change management capability
• Decoupling of gold mines
6. SIGNIFICANT PGM, GOLD
• Tight margins
• Decrease in revenue
AND COMMODITY PRICE DECREASES
• Highly operationally leveraged
• Increased leverage
Related strategic objectives:
Deleveraging our
balance sheet
For further information, see:
CEO’s review and CFO’s report
• Financial leverage
• High levels of debt
• Potential layoffs
• Further social instability
• Earnings dependent on prices
• Shutting down operations
• Difficult to plan confidently
• Constrained capital
• Lack of flexibility to adapt to or
absorb lower prices (long-term
planning decisions)
• Fewer high-grade resources (gold)
available
• Cash flow pressures
• Investors desire for pure commodity
exposure
• Increase in unit costs
• Reputational impact
• Revision of strategy
– Covenant breach
– Increase in cost of capital projects
due to stop/start nature
– Equity issuance
• Hedging
• Corporate
High
Medium • Achievement of
EXTERNAL
• Geographical and commodity
diversification
• Inherent agility and moderate
flexibility to cut costs and growth
financing strategy
implemented
• Reduced debt
profile
targets to business and
operational plans
• Restructuring regional cost base
• Making use of available borrowing
capital
facilities
• Targeting to become a lower cost
quartile producer
• Forecast market dynamics based on
strategic market intelligence
48
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
delivery of strategy
Potential consequences and impact on
5. UNDER-DELIVERY TO PLAN
Related strategic objectives:
• Under-performance
• Reputational impact
• Failure to meet operational targets
• Loss of investor confidence
and stakeholder expectations
• Cash flow generation from
operations
• Highly leveraged and marginal
due to strong Rand and/or low
commodity prices
• Losing competitive edge in
• Low morale
• Job losses
• Inability to repay debt
• Domino effect
• Loss of revenue
• Asset restructuring
South Africa
• Unable to retain key employees
• Volatility of commodity pricing
• Difficulty delivering on community
programmes
• Reduced cash flow
• Poor stakeholder relations
• High fixed costs
• Safety performance
• Organised labour
• Lack of mining flexibility and
technical complexity (such as
seismicity)
• Disengaged employees
• Dependence on key infrastructure
• Financial leverage
• High levels of debt
• Potential layoffs
• Further social instability
• Earnings dependent on prices
• Shutting down operations
• Difficult to plan confidently
• Constrained capital
• Lack of flexibility to adapt to or
• Increase in unit costs
absorb lower prices (long-term
planning decisions)
• Fewer high-grade resources (gold)
available
• Cash flow pressures
• Reputational impact
• Revision of strategy
– Covenant breach
• Investors desire for pure commodity
exposure
– Equity issuance
– Increase in cost of capital projects
due to stop/start nature
Key performance
indicators (KPIs)
• Reduced variance
on delivery to plan
• Review of SA
gold operations
completed
• Improved grade
projection
implemented at US
PGM operations
Inherent
risk
rating
Residual
risk
rating
Risk tolerance
High
Medium • Achievement of
targets to business and
operational plans
• Compliance with
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
Source of risk
INTERNAL AND
EXTERNAL
Enhancement action plan
• Planning and review systems
• Competent people
• Strong regional operational
leadership
• Operating model
• Board oversight
• Role clarity
• Realistic targets
• Flexibility
• Regional organisational structure
• Change management capability
• Decoupling of gold mines
• Hedging
• Corporate
High
Medium • Achievement of
EXTERNAL
financing strategy
implemented
• Reduced debt
profile
targets to business and
operational plans
• Geographical and commodity
diversification
• Inherent agility and moderate
flexibility to cut costs and growth
capital
• Restructuring regional cost base
• Making use of available borrowing
facilities
• Targeting to become a lower cost
quartile producer
• Forecast market dynamics based on
strategic market intelligence
6. SIGNIFICANT PGM, GOLD
• Tight margins
• Decrease in revenue
AND COMMODITY PRICE DECREASES
• Highly operationally leveraged
• Increased leverage
Related strategic objectives:
Sibanye-Stillwater Integrated Report 2018 49
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
Potential consequences and impact on
delivery of strategy
Enhancement action plan
Risk tolerance
Source of risk
Key performance
indicators (KPIs)
Inherent
Residual
risk
rating
risk
rating
7. GLOBAL ECONOMIC DOWNTURN OR
STRENGTHENED US ECONOMY
Related strategic objectives:
Deleveraging our
balance sheet
Pursuing value-accretive
growth
For further information, see:
CEO’s review and CFO’s report
• Significant exposure to PGM
• Decrease in revenue
• Geographical and commodity
• Improved PGM
High
Medium • Achievement of
EXTERNAL
markets
• Decreasing commodity demand
• PGM markets are relatively volatile
and prices
• Platinum is in downturn
• Increased leverage
• Significant exposure to South Africa
• Potential layoffs
• Uncertainty about direction of
• Further social instability
economy and political uncertainty
• Economy drives demand
• Social instability
• Strong US economy has negative
impact on gold
• Shutting down operations
• Lack of capital investment
• Increase in unit costs
• Reputational impact
• Revision in strategy
• Covenant breach
diversification
• Hedging
• Inherent flexibility and agility to
respond rapidly
• Restructuring regional cost base
• Managing capital structure
• Ensuring borrowing facilities are
• Targeting lower cost quartile
available
producer
market intelligence
targets to business and
operational plans
8. FINANCIAL COVENANTS AND NET DEBT
• High debt leverage
• Refinancing on more expensive
• Ensuring delivery on operational
• Reduced variance
Medium Medium • Achievement of
EXTERNAL AND
• Operational under-performance
terms
• Safety stoppages
• Low cash flows
• Investor perception
• Reputational impact
• Not producing sufficient cash to
• Loss of shareholder confidence
reduce debt in line with projections
• Increased scrutiny over management
• Alternative financing options may
not materialise
of business
• Loss of liquidity
• Sensitivity to strong Rand and
• Major restructuring
commodity pricing
plan
• Hedging
options
• Pursuing alternative financing
• Sale of non-core assets
• Facilities and Hedging Committee
• Review of operational costs
and capital
• Lender and investor management
on delivery to plan
• Net debt:adjusted
EBITDA ratio
• Corporate
financing strategy
implemented
targets in business and
INTERNAL
operational plans
• Unionised workforce across all
• Loss of production efficiency
• Employee relations structure
• Successful wage
High
Medium • Compliance with
INTERNAL AND
operations
• Impacts on employee engagement,
• Inter-union rivalry and militancy in
South Africa
morale, productivity and
accountability
• Destructive nature of unions
• Employee safety
• Safety performance
• Reputational damage
• Politicisation of union activities
• Property damage
• Lack of alignment, mistrust between
• Loss of lives
Sibanye-Stillwater and unions
• Job loss
• Social inequality in South Africa
• Large labour force (~65,000 people
and growing)
• Unrealistic wage demands
agreement
key laws, legal
EXTERNAL
requirements and social
requirements for SLPs
and Mining Charter
targets
• Collective agreements
• People Advisory Committee
• Benchmarking
• Competitive wages and benefits (US)
• Direct employee communication
• Community outreach programmes
• Diversification
• Effective security function
Related strategic objectives:
Focus on safe production
and operational excellence
Deleveraging our
balance sheet
For further information, see:
CEO’s review and CFO’s report
9. ORGANISED LABOUR
Related strategic objectives:
Focus on safe production
and operational excellence
For further information, see:
Perspective from the chair, CEO’s review, Stakeholder
engagement and Superior value for the workforce
50
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Risk and related strategic objectives
Underlying vulnerabilities
delivery of strategy
Enhancement action plan
Potential consequences and impact on
Key performance
indicators (KPIs)
Inherent
risk
rating
Residual
risk
rating
Risk tolerance
Source of risk
• Significant exposure to PGM
• Decrease in revenue
• Geographical and commodity
• Improved PGM
High
Medium • Achievement of
EXTERNAL
market intelligence
targets to business and
operational plans
diversification
• Hedging
• Inherent flexibility and agility to
respond rapidly
• Restructuring regional cost base
• Managing capital structure
• Ensuring borrowing facilities are
available
• Targeting lower cost quartile
producer
8. FINANCIAL COVENANTS AND NET DEBT
• High debt leverage
• Refinancing on more expensive
• Ensuring delivery on operational
plan
• Hedging
• Pursuing alternative financing
options
• Sale of non-core assets
• Facilities and Hedging Committee
• Review of operational costs
and capital
• Lender and investor management
Medium Medium • Achievement of
targets in business and
operational plans
EXTERNAL AND
INTERNAL
• Reduced variance
on delivery to plan
• Net debt:adjusted
EBITDA ratio
• Corporate
financing strategy
implemented
• Unionised workforce across all
• Loss of production efficiency
• Employee relations structure
• Successful wage
High
Medium • Compliance with
agreement
• Collective agreements
• People Advisory Committee
• Benchmarking
• Competitive wages and benefits (US)
• Direct employee communication
• Community outreach programmes
• Diversification
• Effective security function
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
INTERNAL AND
EXTERNAL
TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
7. GLOBAL ECONOMIC DOWNTURN OR
STRENGTHENED US ECONOMY
Related strategic objectives:
Related strategic objectives:
9. ORGANISED LABOUR
Related strategic objectives:
markets
• Decreasing commodity demand
• PGM markets are relatively volatile
and prices
• Platinum is in downturn
• Increased leverage
• Significant exposure to South Africa
• Potential layoffs
• Uncertainty about direction of
• Further social instability
economy and political uncertainty
• Economy drives demand
• Social instability
• Strong US economy has negative
impact on gold
• Shutting down operations
• Lack of capital investment
• Increase in unit costs
• Reputational impact
• Revision in strategy
• Covenant breach
• Operational under-performance
terms
• Safety stoppages
• Low cash flows
• Investor perception
• Reputational impact
• Not producing sufficient cash to
• Loss of shareholder confidence
reduce debt in line with projections
• Increased scrutiny over management
• Alternative financing options may
not materialise
of business
• Loss of liquidity
• Sensitivity to strong Rand and
• Major restructuring
commodity pricing
operations
South Africa
• Inter-union rivalry and militancy in
morale, productivity and
accountability
• Impacts on employee engagement,
• Destructive nature of unions
• Employee safety
• Safety performance
• Reputational damage
• Politicisation of union activities
• Property damage
• Lack of alignment, mistrust between
• Loss of lives
Sibanye-Stillwater and unions
• Job loss
• Social inequality in South Africa
• Large labour force (~65,000 people
and growing)
• Unrealistic wage demands
Sibanye-Stillwater Integrated Report 2018 51
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
Potential consequences and impact on
delivery of strategy
Enhancement action plan
Risk tolerance
Source of risk
Key performance
indicators (KPIs)
Inherent
Residual
risk
rating
risk
rating
10. CHANGE IN REGULATORY REQUIREMENTS
• Environmental lobby group in
• Increased cost of compliance and
• Ongoing monitoring of regulatory
• Influencing the
Medium Medium • Compliance with
EXTERNAL
Related strategic objectives:
Focus on safe production
and operational excellence
Deleveraging our
balance sheet
For further information, see:
Perspective from the chair, CEO’s review and Minimising
the environmental impact
Montana, US
cost of doing business
• Carbon emissions regulations
• Periods of non-compliance
• Changing regulatory environment
• Fines and penalties
• Loss of revenue
• Reputational impact
• Contracting market
• Human capital impacts
• Imposition of further taxes
(ongoing)
• Complexity of global regulatory and
compliance environment
• Geographic footprint
• Increased visibility of Sibanye-
Stillwater
• Well-funded and well-organised
anti-mining non-governmental
organisations (NGOs)
• Political uncertainty
• Lack of technical expertise of
regulators (South Africa) resulting in
delays and onerous requirements
• Anti-diesel movement
• Transport emission standards
changes (internal and external)
regulatory change
• Membership of influential
• Compliance with
organisations, including Minerals
changed regulations
Council South Africa, National
Mining Association, PGM
associations and World Gold Council
• Quality of
relationships with
lobby groups
• External legal advisors
• Strategic market intelligence
• Measure and track compliance
• Internal audits
• External regulators
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
Our Beatrix gold operations are located in the Free State province of South Africa
52
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION TOP 10 RISKS AND RELATED MITIGATING ACTIONS continued
Risk and related strategic objectives
Underlying vulnerabilities
delivery of strategy
10. CHANGE IN REGULATORY REQUIREMENTS
• Environmental lobby group in
• Increased cost of compliance and
Potential consequences and impact on
Related strategic objectives:
Montana, US
cost of doing business
• Carbon emissions regulations
• Periods of non-compliance
• Changing regulatory environment
• Fines and penalties
• Loss of revenue
• Reputational impact
• Contracting market
• Human capital impacts
• Imposition of further taxes
(ongoing)
• Complexity of global regulatory and
compliance environment
• Geographic footprint
• Increased visibility of Sibanye-
Stillwater
• Well-funded and well-organised
anti-mining non-governmental
organisations (NGOs)
• Political uncertainty
• Lack of technical expertise of
regulators (South Africa) resulting in
delays and onerous requirements
• Anti-diesel movement
• Transport emission standards
Key performance
indicators (KPIs)
Inherent
risk
rating
Residual
risk
rating
Risk tolerance
Source of risk
• Influencing the
Medium Medium • Compliance with
EXTERNAL
Enhancement action plan
• Ongoing monitoring of regulatory
changes (internal and external)
regulatory change
• Membership of influential
• Compliance with
organisations, including Minerals
Council South Africa, National
Mining Association, PGM
associations and World Gold Council
changed regulations
• Quality of
relationships with
lobby groups
• External legal advisors
• Strategic market intelligence
• Measure and track compliance
• Internal audits
• External regulators
key laws, legal
requirements and social
requirements for SLPs
and Mining Charter
targets
Sibanye-Stillwater Integrated Report 2018 53
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “Our process
for reviewing
and developing
our strategy
is the primary
mechanism for
identification
and prioritisation
of material
opportunities”
MANAGING OUR RISKS AND OPPORTUNITIES CONTINUED
IDENTIFYING AND MANAGING
OUR MATERIAL OPPORTUNITIES
Our process for reviewing and developing our
strategy is the primary mechanism for identification
and prioritisation of material opportunities. At
operating segment level, the strategies incorporate
mainly opportunities for enhancing operating
effectiveness and business improvement that
can yield improved safe production results and
reductions in the unit costs of mining.
At Group level, we maintain strategic intelligence
around developments that are of relevance to
the commodity markets in which we are active
and that may also result in the emergence of
attractive commodity segments as extensions
of our business. Our acquisition of SFA (Oxford)
early in 2019 represents an enhancement of
our capacity to maintain a credible strategic
intelligence platform.
OPERATING IN A DYNAMIC WORLD
During the year, external developments and
internal events in several spheres resulted in our
view of risks in particular, and to a lesser extent
opportunities, evolving during the course of the
year. Key developments and events included
the regulatory framework for the mining
sector in South Africa, global trends related to
transportation and energy, and the tragic safety
events and hostile industrial action at our South
African gold operations.
BUSINESS IMPROVEMENT IN
OUR OPERATING SEGMENTS
Our refreshed Group architecture and leadership
arrangements have been designed to address
strategic priorities providing dedicated focus
on the specific requirements of our operating
segments and driving key focus areas through
dedicated functional executive portfolios. The
main operating segment specific opportunities
may be summarised as follows:
Sustaining the strong safe production momentum
at our SA and US PGM operations while
preparing for the expected integration of Lonmin
in South Africa and continuing to secure the
ramp up from the Blitz expansion in the United
States are the primary priorities while the
South African gold operations are in need of
structuring for sustained profitable operations
with enhancement of the safety improvements
delivered in H2 2018. We are confident that the
refreshed leadership arrangements will address
strategic risks to the business and capitalise
on opportunities through increased executive
leadership focus on critical areas.
SA PGM
operations
US PGM
operations
SA gold
operations
Organisational
growth
Group
Technical
CEO
CEO
Finance
and SA
Integrated
Services
Corporate
Affairs
Legal and
Compliance
Business
Development
54
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION COMMODITY CONFIDENCE THROUGH
RESPONSIBLE ASSURANCE
Scrutiny of the integrity of minerals supply chains
is intensifying globally with the imperative of
demonstrating the responsibility of our mining
operations becoming an increasingly critical
priority for all our stakeholders. In addition to
local stakeholders who have direct interest in
the impact of our operations and with whom
we need to sustain our social licence to operate,
investors, lenders and offtakers are progressively
insisting on adherence to more exacting standards
with respect to the demonstration of responsible
mining and our ESG performance in particular.
We recognise the opportunity to build enhanced
confidence among the financial and commercial
markets, and among social stakeholders,
by sustaining and intensifying our focus on
and strengthening where necessary our ESG
performance. We expect that this will be
supported by securing formal assurance under
relevant and appropriate codes, and progressively
acquiring certification to management systems
relevant to the most critical dimensions of our
ESG performance.
The evolving political climate in South Africa, with
significant improvements in regulatory certainty
and commitments to address systemic corruption,
has created new opportunities for meaningful
social compacting and the establishment of an
operating context conducive to more effective
operations. The 2018 Fraser Institute survey results
provide strong indications of investor sentiment
being restored to historical levels. While there is
still substantial progress to be made in securing
the broad stakeholder alignment that is necessary,
opportunities are improving for growth in
investment in South African mining commensurate
with a reducing discount on returns.
Our confidence in the robustness of the global
precious metals markets remains intact with
prospects for the positive accelerated trend in
PGM basket prices continuing as the supply
and demand balance tightens. This has already
strengthened cash flows beyond the original
projections when we entered the PGM markets
during a low phase in the commodity price cycles,
and we foresee opportunities for this to continue.
Pursuit of an accelerated deleveraging trajectory
is further enhanced through the opportunities
inherent in increasing direct access to the PGM
metal markets with the proposed Lonmin
acquisition representing the fourth step in our
“Scrutiny of
the integrity
of minerals
supply chains
is intensifying
globally”
PGM acquisitions and concluding establishment of
our mine-to-metal value chain in South Africa. We
consider that the chrome and gold markets also
have solid fundamentals with prospects for further
price consolidation and accretion over the short to
medium term.
NEW AGE MINERALS
We also recognise potential for emergence of
a spectrum of New Age minerals as the global
transportation and energy markets evolve. While
it is premature to be definitive about the most
credible opportunities, we are strengthening our
strategic intelligence in this area from which we
expect a firm strategy to emerge.
LINKAGE TO GROUP STRATEGIC
FOCUS AREAS
The reviewed risks and opportunities have
substantially informed the evolution of our
strategic focus areas that are described in the
strategy section on page 8 and 9 of this report.
Our Group CEO engages with stakeholders at the REAP WHAT YOU SOW co-operative close to the
SA gold operations
Sibanye-Stillwater Integrated Report 2018 55
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION STAKEHOLDER ENGAGEMENT
APPROACH
Alignment with our stakeholders is critical to
the success and sustainability of our business.
Maintaining honest and positive relationships with
our stakeholders is essential if we are to ensure
their support and positive contributions towards
achieving mutual success. We also believe that,
by engaging meaningfully with our stakeholders,
we are in a better position to understand their
expectations of value and will be able to deliver
accordingly for mutual benefit.
We subscribe to the principles of various local and
global bodies, such as the International Council
on Mining and Metals (ICMM) and the World
Gold Council, on sustainable development and
corporate governance to guide our approach to
engagement, and to ensure that our engagements
are transparent and integrate sustainable
development and, specifically, our values into our
decision-making processes. We also believe that,
through partnerships with governments, civil
society and development agencies, we will be able
to ensure that our contribution is impactful and
takes into account the needs of the environments
in which we operate.
Stakeholder engagement informs our business
objectives and we strive to maintain sustainable
stakeholder relationships based on trust, mutual
respect and meaningful interactions.
In South Africa, our communities extend beyond
our demarcated boundaries to include a wide
range of stakeholders, including government and
NGOs, and suppliers, among others.
Constructive relations with our communities,
in particular, are essential to our success and
sustainability, and understanding the needs of
our communities and the challenges they face is
key in enabling us to deliver on our purpose of
ensuring that our mining improves lives.
Stable community relations are becoming a critical
element in maintaining a social licence to operate
for mining companies globally, with increasing
focus on ensuring socio-economic stability that
will be sustained long after our mines have
depleted their economic reserves.
IN LINE WITH
SUSTAINABLE
DEVELOPMENT GOALS
We continue to make progress
in aligning our performance
with the United Nations (UN)
Sustainable Development
Goals (SDGs).
We refer to these in the
specific sections further on in
this report.
An employee at one of our SA gold operations
56
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION STAKEHOLDER IDENTIFICATION
Sibanye-Stillwater is committed to proactive, open and constructive stakeholder engagement, which informs participative decision-making.
Our stakeholder engagement aims to:
• Strategically inculcate a culture of effective engagement within the organisation
• Develop and implement formal and informal systems of communication for the benefit of the Group and stakeholders
• Ensure regular engagement and response to issues that are material to stakeholders
• Accurately understand the influence of business activities on stakeholders and the potential impact that stakeholders may have on the
business, whether positive or negative, to enhance the engagement process
• Ensure engagement is conducted in a timely, accurate and relevant manner
• Continuously monitor, review and improve engagement activities
As a responsible corporate citizen, Sibanye-Stillwater fosters and maintains constructive engagement with all stakeholders in order to deliver
on our vision to create superior value for all stakeholders, to maintain our licence to operate, and ultimately for the long-term success and
sustainability of the business.
Our stakeholders1
Group
Employees
We employ about 65,000 people with a diverse
set of skills, and various educational and cultural
backgrounds. Our employees provide services
ranging from core mining to processing and
support.
In the US, we are the largest industrial employer in
Montana with over 1,600 employees and a total
annual payroll of over US$170 million.
Organised labour (unions)
Allied to employee relations is engagement with
organised labour, which includes unions representing
certain employee categories, principally those
involved in core mining and processing.
The US employees are represented by the United
Steel Workers of America International Union (USW).
Investors and providers of capital
Our investors and providers of capital are
geographically diverse, located predominantly
in the US, China (Gold One), the UK and
South Africa.
Suppliers
Suppliers and contractors are categorised into
three groups: strategic, tactical and local. Strategic
suppliers provide services and products that
could have a high impact on our operations,
such as reagents and underground support.
Tactical suppliers provide the bulk of the day-to-
day goods and services required for production.
Local suppliers are small, medium and micro
enterprises (SMMEs) within communities around
our operations.
Form, frequency and reasons for engagement
Key expectations
Regular (daily, monthly and quarterly):
• Written communication
• Electronic communication
• Meetings
• Events
In the US, employee communication is ongoing.
• Information sharing
• Education
• Consultation
• Written communication
• Meetings
In the US, labour communication is ongoing.
• Information
• Consultation and bargaining
• Issues management
• Results presentations
• Market announcements
• Conferences
• Mine visits
• Investor days
• One-on-one investor and analyst meetings
• Conference calls
• Information sharing
• Communicating strategy
• Addressing questions and
concerns
• Written communication
• Meetings
• Information
• Contractual issues
• Issues management
Sibanye-Stillwater Integrated Report 2018 57
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION STAKEHOLDER ENGAGEMENT CONTINUED
Our stakeholders continued
Group
Government and regulators
We engage with all levels of government, including
the departments of Environmental Affairs, Water
and Sanitation, Labour, Health and Education,
among others.
Form, frequency of and reasons for engagement
Key expectations
As necessary to inform regulators of operational
activities and allow regulators access to all levels of
the organisation’s leadership:
• Meetings
• Audits
• To provide statutory reports,
to engage on issues of
mutual interests and to deal
with issues as they arise
• Regular tours and other
information sessions for
stakeholders
The US operations maintain routine communication
with local, state and federal legislators, regulators
and other governmental stakeholders.
• Written communication
• General compliance engagement (reporting)
Traditional leaders
Some of the SA operations are close to or on
communal land. As a result, traditional leaders are
significant stakeholders.
The US operations’ Good Neighbor Agreement
fosters collaboration between local landowners
and the organisation.
NGOs, community-based organisations and
faith-based organisations
These organisations advocate for communities,
mainly around mining companies, on a myriad of
issues (environment, social development, health
and human rights).
The US collaborates with the community
organisations that are party to the Good
Neighbor Agreement, as well as other local and
governmental entities on environmental issues.
The Community Giving Team addresses social and
other issues with charitable donations.
Communities
• Written communication
• Meetings
• Information
• Development planning
• Issues management
• Written communication
• Meetings
• Information
• Development planning
• Issues management
For more detail on activities in
the US operations, refer to the
Good Neighbor Agreement fact
sheet
Communities in the vicinity of Sibanye-Stillwater
operations, and others in the Southern African
Development Community (SADC) labour-sending
areas, are important stakeholders.
• Meetings
• Written communication
• Quarterly or as required
In the US, local county governments receive the
majority of funds paid in terms of Montana’s Hard
Rock Impact Act. The organisation contributes
financially to local communities through these
impact funds, the Community Giving Team and
other regular interactions.
1 Not in any specific order of importance
In the US, regular meetings with the Good
Neighbors are held at many levels. The Community
Giving Team meets monthly to award community
grants, and awards scholarships to community and
employee dependants annually.
• Information sharing
• Development planning
• Issues management
We also engage with other entities who do not share directly in the value created. We engage with the media, which we rely on as a conduit
for our messaging, and to amplify and support engagement with other stakeholders. Similarly, the SA operations engage with the Minerals
Council South Africa, and the US operations with the National Mining Association, the Montana Mining Association, the American Exploration
and Mining Association, the Montana Chamber of Commerce, and the Treasure State Resources Association, which are all industry groups. The
Minerals Council and peer engagement focus on issues pertinent to the industry as a whole, such as wage negotiations for the gold mining
sector, the Mining Charter, legacy matters and illegal mining.
As we strive to create a conducive environment that will enable us to realise our business objectives and create value – safety, cost, volume and
grade – we aim to align stakeholder interests and aspirations.
58
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION PERFORMANCE
SA operations
We introduced our Stakeholder Perception
Index in 2018 – a tool aimed at measuring
stakeholder perceptions in line with King
IV and our shared value approach – which
we tested among community leaders and
local government in communities around
our gold operations in the West Rand and
the Free State (see social upliftment and
community development).
We used convergent interviewing
(unstructured interviews without specific
questions and structured face-to-face
surveys as well as focus groups) as reliable
information gathering techniques. The
interviews revealed the following:
• Organisation – Many interest groups
do not have a formal representative
or governing structure and therefore
lack cohesion
• Communication – Stakeholders expect
regular and consistent communication
• Transparency – Different interest groups
need to know that they are receiving the
same messages
• Education – Stakeholders need to know
how mines operate
• Co-planning – Stakeholders want to
be involved in development project
identification and planning
• Decision-making process – Decisions
have to be reviewed regularly and
stakeholders need to be engaged in
making decisions about projects
• Consultation – Stakeholders want to be
consulted before changes are made that
might affect them
• Focus area – Stakeholders expect
Sibanye-Stillwater to be consistent in
communicating focus areas (such as
procurement, employment and
social development)
• Conflict resolution – Conflicts between
stakeholders and Sibanye-Stillwater need
to be resolved timeously and amicably
The result of the index will be used as a
baseline for the organisation to review its
stakeholder engagement processes and
thus ensure that they serve the interests
of the organisation and the stakeholders.
We intend to conduct biennial studies to
test the status and the strength of our
relationship against this baseline.
Given the importance of the participation
of local stakeholders in our supply chain
activities, we have also strengthened
our engagements with business forums
and individual small, medium and micro
enterprises (SMMEs) with a view to
facilitating their participation in local
economic development programmes.
We also engaged with over 400 local
businesses in 2018 to address challenges
in local procurement and enterprise
development, which was the main cause
of strained community relationships
throughout the year.
Through our engagements with
communities, business forums and
individual SMMEs, municipalities and
traditional leaders, our own officials and
unions, and the Department of Mineral
Resources, among others, the primary
challenges concerning stakeholders were
identified, including:
• Local procurement
• Community development
• Recruitment
• Community safety
• Education and skills development
We also conducted internal workshops on
stakeholder relations, which covered the
cost of conflict, and the need to establish
sound internal and external stakeholder
relationships. Participants considered our
commitments (social and labour plans,
transformation and others), challenges
and solutions. This workshop revealed the
need for executive leadership in external
stakeholder engagement.
In a trust-building process in the Rustenburg
region, we met with a variety of
stakeholders, including internal functional
heads, the municipality, ward councillors
and traditional leaders, to engage on and
explain our approach and methodology,
which differs from those of the companies
that previously managed our operations.
An action plan on the outcomes of these
interventions is expected to be rolled out
in 2019.
Group CEO, Neal Froneman presents at a stakeholder event in Montana in the US
Sibanye-Stillwater Integrated Report 2018 59
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION STAKEHOLDER ENGAGEMENT CONTINUED
US operations
In early 2018, two environmental groups made
public their efforts to place an anti-mining ballot
initiative in the November general election. The
proposed ballot language stated that a mine
proponent must provide “clear and convincing
evidence” that a mine would not require
“perpetual water treatment” following closure
in order for the state to grant an operating
permit. Industry believed that, if this initiative
were enacted, it would cause significant delay in
permitting new mines and may make it effectively
impossible to secure a permit to begin operating
a new hard-rock mine in Montana. By June, the
environmental groups responsible for the initiative
had collected the required number of citizen
signatures and Montana’s Secretary of State had
certified the initiative as Citizen Initiative 186
(I-186) to appear on the general election ballot.
A mining coalition made up of Sibanye-Stillwater
and four other hard-rock mining entities with
a presence in Montana launched an opposition
campaign, “Stop I-186 to Protect Miners and
Jobs”. Pre-campaign polling in June indicated that
the initial “no” vote was predicted at less than
30% while the initial “yes” vote was predicted
at greater than 50% with a number of voters
undecided. The US operations took a leadership
role in the campaign: engaged the workforce
and community leaders to oppose the initiative,
encouraged them to participate actively on social
media and with signs, letters to the editor, and
other public engagement, and communicated
routinely with elected officials and others in
influential positions in an effort to convince the
electorate to “Vote No on 186”. The organisation
also facilitated the filming of two of the five
opposition campaign commercials near Stillwater
operations. In addition to the organisation’s direct
Our Head of the US PGM operations addresses a Good Neighbors meeting
60
Sibanye-Stillwater Integrated Report 2018
efforts, we worked closely with the USW union,
which publicly opposed the initiative with a
powerful letter to the editor and a mailing to all of
its Montana members. To complement the USW’s
position, the Montana chapter of the American
Federation of Labor and Congress of Industrial
Organizations (AFL-CIO) also vehemently opposed
the initiative. We believe this alignment with
labour was key to convincing the electorate that
the initiative would negatively impact Montana.
The efforts were markedly successful, and
Montana voted down the initiative in the general
election. In spite of the unfavourable initial polling,
the “no” votes prevailed with 56% of voters
voting “no” and only 44% voting “yes”.
Refer to the economic impact report and Good
Neighbor Agreement fact sheets for more
information on stakeholder engagement
FUTURE FOCUS
SA operations
Into 2019, our SA operations plan to focus
on optimising community relations and
communication with stakeholders. The challenges
relating to service delivery, unemployment and
historic issues related to mining continue to pose
undue pressure on our mines, and increase the
demands for Sibanye-Stillwater’s involvement
in social issues beyond social and labour plan
commitments. Our objectives are therefore
to manage our reputation and address issues
accordingly while delivering strategic socio-
economic development programmes in line with
stakeholder expectations.
Our key focus areas will be:
• Impact – ensuring that our initiatives have
broader and positive impact
• Sustainability – ensuring that our projects are
sustainable (owned and driven by communities)
• People – focusing on people and ensuring that
we continue to uphold our CARES values
US PGM operations
Although the ultimate vote was a success, the
campaign surrounding I-186 was a reminder of the
complex history of hard-rock mining in Montana,
and the general need to tell our positive mining
story that is built on the collaboration of the Good
Neighbor Agreement principles. In 2019, the
US operations are committed to sharing publicly
collaboration successes and encouraging others
in mining and other industries to consider this
collaborative approach. The US operations are
also committed to supporting similar collaborative
efforts through the Community Giving programme.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION INTRODUCTION
VIEW FROM THE TOP
PERFORMANCE REVIEW
GOVERNANCE
ANCILLARY INFORMATION
03
Our operational
excellence and
innovative value creation
62 How we performed
63 Delivering value from operations, projects
and technology
75 Resources and Reserves – summary
86 Superior value for the workforce
102 Ensuring safe production
112 Occupational health and well-being
122 Social upliftment and
community development
130 Minimising the environmental impact
Sibanye-Stillwater Integrated Report 2018 61
Sibanye-Stillwater Integrated Report 2018 61
sectionperformance review HOW WE
PERFORMED
Progress made in delivering on
our strategic objectives and our
commitment to create stakeholder
value and improve lives through
the responsible mining and
beneficiation of our mineral
resources in 2018
DELIVERING VALUE FROM
OPERATIONS, PROJECTS
AND TECHNOLOGY
MINERAL RESOURCES
AND MINERAL RESERVES –
SUMMARY
1,768,000oz 4E-2E PGMs produced
(2017: 1,571,000oz)
204.4Moz 2E and 4E PGM
Mineral Resources
Gold produced: 1,177,000oz
(2017: 1,403,000oz)
Six PGM and four gold mining
operations in two geographic
areas together with associated
infrastructure, plant and
equipment
Optimising processes to ensure
cost-efficient operations
104.2Moz Gold Mineral Resources
18,795.8Mlb Copper
Mineral Resources
46.1Moz 2E and 4E PGM
Mineral Reserves
16.6Moz Gold Mineral Reserves
78.7Mlb Uranium Mineral Resources
See pages 63-73
See pages 75-85
SUPERIOR VALUE FOR
THE WORKFORCE
ENSURING
SAFE PRODUCTION
OCCUPATIONAL HEALTH
AND WELL-BEING
Skilled, motivated workforce
of 52,631 permanent employees and
10,887 contractors
48% HDSAs in management
SA operations invested
R559 million and US operations,
US$2.6 million, in HR training and
development
Introduction of world-class
leadership programmes
FIFR 0.16 (2017: 0.07)
LTIFR 5.89 (2017: 5.78)
SIFR 3.70 (2017: 3.57)
TRIFR 2.69 (2017: 2.60)
Intensified focus on safe
production resulted in a
marked improvement in safety
performance from the first to the
second half of 2018
165 silicosis cases reported
(2017: 261)
539 tuberculosis cases reported
(2017: 623)
243 noise-induced hearing loss
cases reported (2017: 193)
4% HIV prevalence (2017: 6%)
Settlement agreement reached
in the silicosis and TB class action
on 3 May 2018.
See pages 86-101
See pages 100-101
See pages 112-129
SOCIAL UPLIFTMENT
AND COMMUNITY
DEVELOPMENT
MINIMISING THE
ENVIRONMENTAL
IMPACT
SA operations invested R1,374 million
in socio-economic development, while
US operations spent $387,830 on
philanthropic activities
SA operations spent R10,879 with
local HDSA businesses
Bokamoso Ba Rona, a large-scale
agriculture and bio-energy project
launched in the West Rand district
(SA operations)
Group Scope 1 and 2 carbon
emissions declined by 14% from
2017 to 2018
A- CDP score for the second
consecutive year.
Zero Level 4 and above environmental
incidents
3% decrease in the consumption of
purchased water
See pages 122-129
See pages 130-151
Kloof plant
62
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
APPROACH
Operational excellence and
innovative growth create
sustainability as our strategy
drives us to create superior value
for all stakeholders at our mining
operations and projects in the
United States, South Africa,
Zimbabwe, Canada and Argentina.
We remain globally competitive yet
proudly South African by focusing
on commodity and geographical
diversification that delivers clear
strategic and financial benefits.
IN LINE WITH SUSTAINABLE
DEVELOPMENT GOALS
We continue to make progress in
aligning our operations and projects
with the United Nations (UN)
Sustainable Development Goals
(SDGs), focusing particularly on
Goal 12.
LOCATION OF OUR
OPERATIONS AND PROJECTS
PGM
GOLD
URANIUM
PGM-COPPER
COPPER-GOLD
UNITED STATES
PGM OPERATIONS
• East Boulder
SOUTHERN AFRICA
PGM OPERATIONS
• Rustenburg
• Mimosa (50%) 1
• Stillwater (including Blitz)
• Kroondal (50%)
• Platinum Mile (91.7%) 1
OTHER PROJECTS
•• Altar (Argentina)1
PGM PROJECTS
• Hoedspruit (74%)
• Zondernaam (74%)
•• Marathon (Canada)
• Vygenhoek (50%)
• Blue Ridge (50%) 2
•• Rio Grande (Argentina)
GOLD OPERATIONS
• Beatrix
• Cooke 2
• Driefontein
• Kloof
GOLD PROJECTS
• DRDGOLD (Ergo and FWGR3)
(38%)1
• Burnstone
• SOFS 4
1 Non-managed
2 Underground operations on care and maintenance
3 Far West Gold Recoveries
4 Southern Orange Free State project
Sibanye-Stillwater Integrated Report 2018 63
Kloof plant
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
CONTINUED
OPERATIONAL PERFORMANCE
Our US and SA PGM operations maintained steady
operating performances with revenues benefiting
from higher palladium and rhodium prices in
2018, which have continued to strengthen into
2019. The benefits of our well-timed diversification
into the PGM sector, as well as our geographical
diversification, are clearly evident in the PGM
financial results of the segments. The solid operating
and financial performance of our PGM operations
compensated for challenges experienced by our SA
gold operations.
US PGM operations
Our dominant source of earnings is now our US PGM
operations, which accounted for approximately 50%
of Group adjusted EBITDA in 2018 with the adjusted
EBITDA margin for the US PGM operations increasing
from 43% in 2017 to 46% in 2018, primarily due
to the higher dollar palladium price and strong
operational performance. Adjusted EBITDA from
the US PGM operations (including the lower margin
recycling operations) increased from 23% in 2017 to
26% for 2018.
Mined 2E PGM production for the year of
592,608 2Eoz was towards the upper end of
market guidance, reflecting the ongoing build-up
of production at Blitz and record production from
the East Boulder mine. AISC of US$677/2Eoz was
in line with annual guidance.
The 9% year-on-year increase in the average
2E PGM basket price for the year of US$1,007/2Eoz,
coupled with the strong operating performance,
boosted adjusted EBITDA for 2018 to
US$314 million (R4,152 million).
Despite the ongoing rebuild and expansion of
the second electric furnace (EF2), the Columbus
Metallurgical Complex performed well, processing
619,683oz of mined 2E PGM and 686,592oz of
recycled 3E PGM. The recycling division averaged
22.0 tonnes of feed material per day in 2018 in
comparison with an average feed rate of
23.9 tonnes per day in 2017.
Capital expenditure of US$214 million was
marginally lower than market guidance of
US$220 million. This capital expenditure is evenly
split between sustaining and growth/project
capital associated with the ongoing development
and production ramp-up from Blitz, which is on
schedule with three stope blocks successfully
commissioned and in production.
64
Sibanye-Stillwater Integrated Report 2018
US PGM operations: production and recycling (ounces)
Mined 2E production
Stillwater
East Boulder
Total mined
Recycling 3E3 at
Columbus Metallurgical Complex
PGM fed
PGM sold
PGM tolled returned
1 May to December 2017
2018
364,167
228,441
592,608
686,592
540,546
144,172
2017 1
2228,268
148,088
373,356
517,148
377,793
108,728
2 Includes 7,000 2Eoz produced by Blitz project in 2017 and 40,232 2Eoz in 2018
3 Recycling production includes rhodium
SA PGM operations
The contribution from the SA PGM operations has
increased substantially due to the improved rand
PGM basket price and solid, sustained operational
performance. In 2018, the SA PGM operations
contributed 34% of Group adjusted EBITDA, up
from 18% in 2017, with the adjusted EBITDA
margin increasing year-on-year from 12% to 19%.
Full-year 4E PGM production was 1,175,672oz for
the year ended 31 December 2018, exceeding the
upper guidance limit.
Kroondal attributable built on the record
performance of the previous year increasing
the record by 5.8% from the previous year’s
production to 255,172oz attributable.
Rustenburg was 3.9% lower than the previous
year at 778,346oz mainly as result of lower surface
production, underground production is in line with
the previous year’s performance.
Attributable 4E PGM production from Mimosa was
up 0.34% from the previous year to 124,576oz
another consistent performance despite the
turbulent political and economic environment in
Zimbabwe.
Platinum Mile Resource was down 9.6% from
the previous year to 17,578oz, mainly as a result
of the improved recoveries from the Rustenburg
operations resulting lower feed grade to Platinum
Mile, subsequently Platinum Mile embarked on a
plant improvement strategy (see Project section).
The average 4E PGM basket price for the year
ended 31 December 2018 of R13,838/4Eoz
(US$1,045/4Eoz) was 10% higher year-on-year.
Adjusted EBITDA for the full year of R2,882 million
(US$218 million) was 81% higher than it was in
2017 with the adjusted EBITDA margin increasing
from 12% in 2017 to 19% in 2018.
Mechanised drilling underground
at our US PGM operations
Underground at the K6 mine at
our SA PGM operations
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA gold operations
Including 1,870kg (60,122oz) from DRDGOLD,
total gold production declined by 16% year-on-
year to 36,600kg (1,176,600oz), primarily due
to the impact of the safety incidents in the first
half of the year and other operational disruptions
(power cuts at Beatrix, and seismic damage to
infrastructure at the Driefontein 1 and Kloof 3
shafts), the AMCU strike in the second half of the
year, and the cessation of underground mining
at the Cooke operations in late 2017, which
accounted for 956kg (30,736oz) or 32% of
the reduction.
Gold production (excluding DRDGOLD and the
Cooke underground operations) also declined by
16% to 34,676kg (1,114,800oz).
Underground production from the Driefontein
operations decreased by 33% year-on-year to
8,952kg (287,800oz) due to repairs to the footwall
infrastructure of the Masakhane shaft, following
the seismic damage in May 2018 and the impact
of the AMCU strike. The footwall infrastructure
has been rehabilitated successfully but anticipated
production build-up in the area was delayed by
the strike.
Gold production from surface sources decreased
by 64% to 621kg (20,000oz) due to the depletion
of surface reserves and the disposal of the 2 and
3 plants to DRDGOLD. The possible restructuring
of specific shafts at Driefontein, and recovery in
volumes once the strike has ended, are expected
to return the operation to profitability in 2019.
Underground production from the Kloof
operations decreased by 13% to 12,933kg
(415,800oz) in comparison with 2017. Production
volumes decreased by 16%, most notably at
3, 4 and 7 shafts, which were affected by the
trauma of safety incidents and the AMCU strike.
Surface production increased by 39% to 2,231kg
(71,700oz) due to the additional milling capacity
as a result of lower underground production, and
the decision to process Kloof surface material
at the Driefontein and Ezulwini metallurgical
processing facilities.
At the Beatrix operations, underground gold
production decreased slightly by 6% to 8,291kg
(266,600oz), primarily due to the strike that
affected production in the fourth quarter. Gold
production from surface sources increased by 7%
to 246kg (7,900oz) due to a 23% improvement in
mined grades to 0.4g/t.
Underground production from the Cooke
operations decreased by 97% to 81kg (2,600oz),
following cessation of underground operations in
November 2017 and final clean-up in December
“Our successful
commodity and
geographic
diversification is
evident in our
results”
2017. No underground gold was produced from
the Cooke operations other than that from the
clean-up of mud dams. Surface gold production
increased by 64% to 1,265kg (40,700oz) due to a
26% increase in processed volumes to 4.0Mt due
to the inclusion of Dump 38 and the acquisition
of third-party material, which resulted in an
additional 531kg (17,000oz) of gold for the period
under review.
The impact of the 16% decline in production
year-on-year is evident in the 15% increase in AISC
for 2018 to R557,530/kg (US$1,309/oz) although
cost of sales before amortisation and depreciation
(including DRDGOLD and the Cooke underground
operations) remained flat year-on-year. The
significant fixed overhead cost component
(over 80% of operating costs) for the SA gold
operations makes costs very sensitive to production
volume changes and, as a result, unit costs such
as AISC invariably increase with reductions in
production volumes.
The average received rand gold price for 2018 of
R535,929/kg (US$1,259/oz), which was flat year-
on-year, combined with the significant decline in
production, resulted in adjusted EBITDA from our
SA gold operations declining to R1,362 million
(US$103 million) from R5,309 million
(US$399 million) in 2017.
Shaft headgears at the Driefontein SA gold operations
Sibanye-Stillwater Integrated Report 2018 65
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
CONTINUED
SA and US PGM operations (2018)
Production (attributable)1
Ore milled
Underground
Surface
Plant head grade
Underground
Surface
Plant recoveries
Underground
Surface
Yield
Underground
Surface
PGM production (4E/2E)
Underground
Surface
PGM sales (4E/2E)
Price and costs2
Average PGM basket price received3
Adjusted EBITDA margin4
All-in sustaining cost5
All-in cost5
Capital expenditure
Ore reserve development
Sustaining capital
Growth projects6
Total
000t
000t
000t
g/t
g/t
g/t
%
%
%
g/t
g/t
g/t
000oz
000oz
000oz
000oz
R/oz
US$/oz
%
R/oz
US$/oz
R/oz
US$/oz
Rm
Rm
Rm
Rm
US$m
Total PGM
operations
SA PGM operations
US PGM
operations
Total
Kroondal
Mimosa
Platinum
Mile
Rustenburg
Stillwater
27,180
13,720
13,460
25,841
12,381
13,460
2.65
4.40
0.87
76.34
86.24
25.23
2.02
3.79
0.22
1,768
1,673
95
1,770
2.01
3.25
0.87
70.40
83.60
25.23
1.42
2.71
0.22
1,176
1,080
95
1,176
13,657
1,031
23
13,838
1,045
19
9,904
7 10,417
748
7 787
10,897
7 10,472
823
7 791
1,477
725
1,632
3,833
290
7 478
7 464
7 58
1,000
76
3,865
3,865
0
2.48
2.48
0
82.65
82.65
0
2.05
2.05
0
255
255
0
255
14,203
1,072
22
9,849
744
9,849
744
0
141
0
141
11
1,402
1,402
0
3.56
3.56
0
77.59
77.59
0
2.76
2.76
0
125
125
0
125
13,525
1,021
33
9,069
685
9,069
685
0
171
0
171
13
7,712
12,862
0
7,712
0.63
0
0.63
11.19
0
11.19
0.07
0
0.07
18
0
18
18
13,618
1,028
22
8,676
655
7,114
5,748
2.52
3.60
1.19
74.59
85.13
35.22
1.88
3.06
0.42
778
701
78
778
13,723
1,036
18
10,642
804
1,339
1,339
0
15.01
15.01
0
91.29
91.29
0
13.77
13.77
0
593
593
0
594
13,337
1,007
46
8,994
677
11,924
10,643
11,651
900
0
10
57
67
5
804
478
314
1
792
60
880
999
260
1,574
2,833
214
Average exchange rate in 2018 was R13.24/US$
Figures may not tally as they are rounded independently
The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into South African
rand. In addition to the US PGM operations’ underground production, recycled material is treated, which is excluded from the statistics
1 Kroondal and Mimosa represent 50% attributable production while Platinum Mile is 91.7% owned and 100% incorporated
2 The Group and total SA PGM operations’ unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted, and excluded
from revenue and cost of sales
3 The average PGM basket price is the PGM revenue per 4E/2E ounce prior to a purchase-of-concentrate adjustment
4 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
5 All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time
severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, as the cost to sustain current operations
and presented as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in
sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in
cost respectively, in a period, by the total 4E/2E PGM production in the same period.
6 The US PGM operations’ growth project expenditure in 2018 was R71 million (US$5 million) – the majority of which related to the Altar and
Marathon projects
7 Excludes Mimosa due to it being equity accounted
66
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA and US PGM operations (2017)
Production (attributable)1
Ore milled
Underground
Surface
Plant head grade
Underground
Surface
Plant recoveries
Underground
Surface
Yield
Underground
Surface
PGM production (4E/2E)
Underground
Surface
PGM sales (4E/2E)
Price and costs2
Average PGM basket price received3
Adjusted EBITDA margin4
All-in sustaining cost5
All-in cost5
Capital expenditure
Ore reserve development
Sustaining capital
Growth projects6
Total
000t
000t
000t
g/t
g/t
g/t
%
%
%
g/t
g/t
g/t
000oz
000oz
000oz
000oz
R/oz
US$/oz
%
R/oz
US$/oz
R/oz
US$/oz
Rm
Rm
Rm
Rm
US$m
Total PGM
operations
SA PGM operations
US PGM
operations
Total
Kroondal
Mimosa
Platinum
Mile
Rustenburg
Stillwater
27,051
26,196
13,116
12,261
13,935
13,935
2.50
4.06
1.02
72.37
85.22
24.25
1.81
3.46
0.25
1,571
1,460
110
1,550
2.09
3.30
1.02
68.06
83.42
24.25
1.42
2.75
0.25
1,194
1,084
110
1,194
3,778
3,778
0
2.42
2.42
0
81.91
81.91
0
1.99
1.99
0
241
241
0
241
1,385
1,385
0
3.58
3.58
0
77.87
77.87
0
2.79
2.79
0
124
124
0
124
8,050
12,983
0
8,050
0.65
0
0.65
11.62
0
11.62
0.08
0
0.08
19
0
19
19
7,098
5,885
2.72
3.70
1.52
71.41
84.99
31.58
1.94
3.15
0.48
810
719
91
810
855
855
0
15.01
15.01
0
90.95
90.95
13.69
13.69
376
376
355
12,477
12,534
12,564
12,572
12,679
12,505
12,330
938
17
942
12
944
15
9,959
7 10,399
10,176
748
7 782
765
10,582
7 10,401
10,176
795
7 782
765
1,004
572
891
2,466
202
7 465
7 568
7 2
1,035
78
0
191
0
191
14
945
31
9,781
735
9,781
735
0
223
0
223
17
953
27
6,696
503
6,815
512
0
11
2
13
1
940
11
10,554
793
927
43
8,707
651
10,554
11,097
793
465
366
0
831
62
821
539
227
6888
1,654
124
Average exchange rate in 2017 was R13.31/US$
Figures may not tally as they are rounded independently
The US PGM operations’ underground production is converted to metric tonnes and kilograms, and performance is translated into South African rand.
In addition to the US PGM operations’ underground production, recycled material is treated, which is excluded from the statistics shown
1 Kroondal and Mimosa represent 50% attributable production while Platinum Mile is 91.7% owned and 100% incorporated
2 The Group and total SA PGM operations’ unit cost benchmarks exclude the financial results of Mimosa, which is equity accounted, and excluded from
revenue and cost of sales
3 The average PGM basket price is the PGM revenue per 4E/2E ounce prior to a purchase-of-concentrate adjustment
4 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
5 All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time
severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, as the cost to sustain current operations
and presented as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in
sustaining cost per ounce (and kilogram) and All-in cost per ounce (and kilogram) are calculated by dividing the All-in sustaining cost and All-in cost
respectively, in a period, by the total 4E/2E PGM production in the same period.
6 The US PGM operations’ corporate project expenditure in 2017 was R40 million (US$3 million) – the majority of which related to the Altar and
Marathon projects
7 Excludes Mimosa due to it being equity accounted
Sibanye-Stillwater Integrated Report 2018 67
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
CONTINUED
SA gold operations (2018)
Production
Ore milled
Underground
Surface
Yield
Underground
Surface
Gold production
Underground
Surface
Gold sales
Price and costs
Gold price received
Adjusted EBITDA margin1
All-in sustaining cost2
All-in cost2
Capital expenditure
Ore reserve development
Sustaining capital
Growth projects3
Total
Unit
000t
000t
000t
g/t
g/t
g/t
kg
000oz
kg
000oz
kg
000oz
kg
000oz
R/kg
US$/oz
%
R/kg
US$/oz
R/kg
US$/oz
Rm
Rm
Rm
Rm
US$m
Total
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
27,199
5,811
21,388
1.35
5.21
0.30
36,600
1,177
30,263
973
6,337
204
36,489
1,173
3,143
1,634
1,509
3.05
5.48
0.41
9,573
308
8,952
288
621
20
9,573
308
7,108
1,821
5,287
2.13
7.11
0.44
15,253
490
12,940
416
2,313
72
15,164
488
2,952
2,282
670
2.89
3.63
0.37
8,536
275
8,291
267
245
8
8,536
275
4,092
74
4018
0.33
1.08
0.33
1,394
45
80
3
1,314
42
1,346
43
9,904
0
9,904
0.19
0
0.19
1,844
59
0
0
1,844
59
1,870
60
535,929
533,918
536,250
539,046
550,223
560,160
1,259
7
1,254
(13)
1,259
21
1,266
14
1,292
(50)
1,316
3
557,530
707,375
489,587
521,884
476,003
569,893
1,309
1,661
1,150
1,226
1,118
1,338
583,409
707,417
498,938
522,083
476,003
732,086
1,370
1,661
1,172
1,226
1,118
1,719
2,054
546
648
3,248
245
817
228
1
1,046
79
840
221
142
1,202
91
397
83
2
481
36
0
0
0
0
0
0
15
303
318
24
Average exchange rate in 2018 was R13.24/US$
Figures may not tally as they are rounded independently
1 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
2 All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time
severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, as the cost to sustain current operations
and presented as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in
sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in
cost, respectively, in a period by the total gold sold in the same period.
3 Growth project expenditure in 2018 was R201 million (US$15 million) – the majority of which was related to the Burnstone project
68
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA gold operations (2017)
Production
Ore milled
Underground
Surface
Yield
Underground
Surface
Gold production
Underground
Surface
Gold sales
Price and costs
Gold price received
Adjusted EBITDA margin1
All-in sustaining cost2
All-in cost2
Capital expenditure
Ore reserve development
Sustaining capital
Growth projects3
Total
Unit
000t
000t
000t
g/t
g/t
g/t
kg
000oz
kg
000oz
kg
000oz
kg
000oz
R/kg
US$/oz
%
R/kg
US$/oz
R/kg
US$/oz
Rm
Rm
Rm
Rm
US$m
Total
Driefontein
Kloof
Beatrix
Cooke
19,030
7,575
11,455
2.29
5.19
0.38
43,634
1,403
39,285
1,263
4,349
140
43,763
1,407
6,042
2,137
3,905
2.48
6.21
0.45
5,844
2,177
3,667
2.86
6.81
0.45
15,004
16,432
482
528
13,262
14,826
426
1,742
56
477
1,606
52
15,088
16,466
485
529
3,515
2,737
778
2.59
3.24
0.30
9,091
292
8,859
285
232
8
9,091
292
3,722
524
3,198
0.83
4.46
0.24
3,107
100
2,338
75
769
25
3,118
100
536,378
535,319
537,167
536,333
537,684
1,254
23
1,251
23
1,256
34
1,254
19
1,257
(31)
482,693
487,951
430,572
502,761
673,445
1,128
1,141
1,007
1,175
1,574
501,620
490,893
439,506
503,036
677,197
1,173
1,148
1,027
1,176
1,583
2,288
531
591
3,410
256
876
235
44
1,156
87
876
210
147
1,234
93
482
63
1
546
41
54
9
12
74
6
Average exchange rate in 2017 was R13.31/US$
Figures may not tally as they are rounded independently
1 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
2 All-in cost excludes income tax, costs associated with merger and acquisition activities, working capital, impairments, financing costs, one-time
severance charges and items needed to normalise earnings. All-in cost is made up of All-in sustaining cost, as the cost to sustain current operations
and presented as a sub-total in the All-in cost calculation, together with corporate and major capital expenditure associated with growth. All-in
sustaining cost per kilogram (and ounce) and All-in cost per kilogram (and ounce) are calculated by dividing the All-in sustaining cost and All-in
cost, respectively, in a period by the total gold sold in the same period.
3 Growth project expenditure in 2017 was R402 million (US$30 million) – the majority of which was related to the Burnstone project
Sibanye-Stillwater Integrated Report 2018 69
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
CONTINUED
FILL THE MILL GROWTH PROJECT
The Fill the Mill (FTM) project, a low capital-investment, high-return, growth project
at the US PGM operations is expected to deliver approximately 40,000oz of annual 2E
PGM production, over an expected 10-year period from late 2020, through incremental
expansion of mining and certain support facilities at East Boulder and the Columbus
Metallurgical Complex.
Incremental project capital is approximately US$19 million (excluding additional operating
costs) over two years until first production.
FUTURE FOCUS
The Group is poised to benefit from the sharp
increase in precious metals prices in the first
three months of 2019, particularly palladium
and rhodium, and most recently a recovery in
the platinum price, which are well supported
by robust fundamentals.
Mined 2E PGM production from the US
PGM operations is forecast at between
645,000oz and 675,000oz due to continued
production build-up from Blitz. AISC is
forecast to be between US$690/2Eoz and
US$730/2Eoz, an increase range of 2% to 8%
versus 2018’s reported AISC of US$677/2Eoz.
This anticipated increase is largely attributed
to maintenance equipment capital spend at
Stillwater and increased royalties and taxes as
a result of higher prevailing US$ PGM prices.
Unit cash operating cost, which is calculated
before these specific items, is expected to
decline year-on-year as lower cost production
from Blitz supplements stable production
from Stillwater West and East Boulder.
Total capital spend for the year is guided at
between US$235 million and US$245 million.
Approximately half of this anticipated spend is
growth capital, including expenditure on the
Fill the Mill (FTM) project.
From the SA PGM operations, 4E PGM
production in 2019 is forecast at 1.0Moz –
1.1Moz with AISC between R12,500/4Eoz
and R13,200/4Eoz (US$922/4Eoz and
US$974/4Eoz), reflecting the transition to
the toll processing arrangement. Capital
expenditure is forecast at R1,400 million
(US$103 million), including approximately
R230 million (US$17 million) of project capital,
excluding Mimosa. The dollar costs are based
on an average exchange rate of R13.55/US$.
DRDGOLD has been fully consolidated
into Group operating and financial results
from 1 August 2018 but, at this stage,
we can report that guidance for our SA
gold operations will be available only once
the protracted AMCU strike has been
terminated and the restructuring process has
been completed.
An employee at our US PGM operations
70
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION PROJECTS
Refer to Sibanye-Stillwater Mineral
Resources and Mineral Reserves Report 2018
for details on each project
Expenditure on organic growth projects in
2018 was R2,279 million (US$172 million) in
comparison with R1,482 million
(US$111 million) in 2017.
Our projects are reviewed, evaluated and
ranked every year in line with our strategic
planning in order to determine execution
priority and thus ensure highest capital
efficiency for the entire portfolio.
US PGM projects
BLITZ
The Blitz section, a significant expansion
project currently under development, started
ore production in 2017 and produced
40,232 oz in 2018 as part of the Stillwater
mine. The current section is accessed by a
580m-deep shaft and five portals.
The Blitz project will expand the Stillwater
mine 6,000m to the east of the existing
mining operations (refer to schematic
below). All primary development in the Blitz
area will be 5m high by 5m wide, which will
significantly reduce underground support
personnel per tonne mined. The average
Blitz reserve grade is 24g/t with localised
stoping (ore) areas in excess of 30g/t.
The Blitz project is expected to add an
additional 300,000 2E PGM ounces to the
existing Stillwater and East Boulder production
by 2021/2022. Planned production expansion
in the Blitz project area requires accelerated
manpower hiring, expansion of concentrator
capacity and shorten permitting time lines for
tailings expansion.
MARATHON
During 2018, at the Marathon PGM-
copper project, approximately 10km north
of Marathon, Ontario, adjacent to the
Trans-Canada Highway 17 on the north-
east shore of Lake Superior, geological
prospecting mapping and trench sampling
continued at the Boyer zone where surface
mineralisation was extended by 800m.
In addition, a passive seismic survey was
completed over the Marathon property
(1,024 geophones) as a project funded by
the Horizon 2020 European Union research
and innovation programme. The data is
currently being processed with a view to
locating high-velocity zones that correlate
with massive sulphide high-grade feeders at
Marathon. The gravity survey line (6,000m)
was also surveyed in 2018 across a seismic
high-velocity zone to verify higher density.
Baseline environmental stream sampling
and a community relations programme
continued at the same time.
SA PGM operations
CHROME OPTIMISATION
A chrome spiral recovery plant currently
exists at the Waterval UG2 concentrator
to treat flotation tails. In order to improve
chrome recovery, fine fraction chrome
recovery technology trade-off studies were
conducted in 2018. The trade-off studies
concluded that a reflux classifier was the
preferred technology solution. The chrome
optimisation project introduces two modular
reflux classifiers to increase the recovery of
chrome in the -75 micron tailings fraction.
The project envisages the recovery of an
additional 10,000 tpm of chrome concentrate
equivalent to 20% of current production.
A contracting company, Linhleko Projects,
will recover the chromite concentrate in
terms of an outcome-based business model
Schematic of the Stillwater mine as part of the US PGM operations
and the SA PGM operations will initially
account for the contract as a finance lease
that will be reflected as a right of use asset
and finance lease liability (considered to be
debt) of approximately R230 million. Sibanye-
Stillwater will not directly fund the project but
will pay for the plant in terms of an outcome-
based business model that is related to actual
chrome production. The project is expected
to be commissioned in Q4 2019.
PLATINUM MILE RECOVERY
FLOTATION EXPANSION PROJECT
The aim of the Platinum Mile recovery
flotation expansion project is to increase
throughput by 520m3 and retention time
from eight minutes to 24 minutes thereby
significantly improving 4PGE recovery.
The increased rougher retention time resulted
in an overall plant recovery of about 2%.
Earthworks for the rougher cell expansion
to the Platinum Mile recovery flotation
expansion project commenced on
23 January 2018 and the project was
commissioned during Q4 2018 for a
capital cost of R60 million.
SA gold projects
BURNSTONE
The Burnstone project is a shallow to
intermediate depth gold mining project near
Balfour in Mpumalanga, 80km north-west of
Johannesburg. The Burnstone development
project was purchased by Sibanye-Stillwater
in 2014. The project feasibility study that
was prepared was independently reviewed
in 2015 and finance was approved in 2016
with development starting in 2016. As from
commencement of development in 2016 to
May 2018, 12,368 metres of development
had been completed which includes seven
reef raises that are production ready.
The capital approved for the Burnstone
project during 2018 was R442.0 million.
On completion of a detailed engineering
design, the project capital provision approved
for 2018 was reduced to R417.6 million
in order to deliver new infrastructure
on a just in time basis with an expected
expenditure of R198.0 million by end
December 2018. Development was stopped
in May 2018, due to a capital preservation
exercise. The operational requirements
subsequently focused on the establishment
of underground engineering infrastructure in
preparation for mining production in 2021.
Sibanye-Stillwater Integrated Report 2018 71
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
CONTINUED
The Burnstone project focus for 2019 is
to continue establishing underground
engineering infrastructure in preparation for
expected mining production commencing
in 2021. The Burnstone 2019 operational
plan project capital provision of R125 million
has been allocated to complete the required
engineering infrastructure to support mining
production from 2021.
SOUTHERN ORANGE FREE STATE
Sibanye-Stillwater acquired the Southern
Orange Free State (SOFS) project (which
includes the Bloemhoek and De Bron
Merriespruit projects) near Virginia in the
Free State in 2014 through the acquisition of
Witwatersrand Consolidated Gold Resources
(Wits Gold).
The De Bron Merriespruit project was at
feasibility stage and an application for a
new mining right over the SOFS project
area was submitted to the Department of
Mineral Resources in terms of Section 22
of the Mineral and Petroleum Resources
Development Act. The SOFS mining
right was granted in February 2014 and
executed on 14 June 2017. The right
expires on 13 June 2040.
A feasibility study on Bloemhoek, which
began in 2016, is expected to be finalised
in 2019. If the project is approved, the
development is expected to enter the
Bloemhoek project area from Beatrix 3
shaft in 2021. The Bloemhoek and De Bron
Merriespruit projects envisage using existing
Beatrix support infrastructure in order to
limit the amount of capital funding required
to reach production phase.
FAR WEST GOLD RECOVERIES
In August 2018, the sale of selected
surface assets to DRDGOLD was concluded.
Select West Rand Tailings Retreatment
Project (WRTRP) assets were traded
for 38.05% of all DRDGOLD shares.
DRDGOLD’s gold reserves increased by
approximately 83% from 3.28Moz to
6.00Moz following the transaction.
Renamed Far West Gold Recoveries, 30km
west of Johannesburg, this project, which is
now in operation, includes historic tailings
storage facilities over an area of 412.3ha
with a combined Mineral Reserve estimate
of 246Mt at an average grade of 0.344g/t
gold for a total gold content of 2.72Moz.
72
Sibanye-Stillwater Integrated Report 2018
DRDGOLD commissioned a “reduced”
Phase 1 of the Far West Gold Recoveries
project, with the pumping of reclaimed
tailings from the Driefontein 5 tailings facility
into the upgraded Driefontein 2 carbon-in-
leach (CIL) circuit. The project is on track to
process the designed 500 000tpm in Q1 2019.
DRDGOLD intends developing the assets into
a large-scale 1.2Mtpm, 20-year operation
that will reclaim gold in a phased approach.
KLOOF OPTIMISATION PROJECT
The extension project at Kloof’s 4 shaft, to
access the area between 45 and 47 levels,
progressed to a point just below 46 level in
2018. Development will continue to 47 level.
In addition, the Kloof 8 shaft expansion
project, designed to increase current
production levels at 8 shaft, was approved in
2018 and will be fully operational by 2020.
The Kloof integration project, designed
to optimise operating shafts and close
redundant infrastructure, also began in
2018. This project will significantly decrease
operating costs.
Other projects
ALTAR
On 5 November 2018, Sibanye-Stillwater
concluded a transaction with Regulus
Resources and a newly formed subsidiary
of Regulus, Aldebaran Resources creating a
strategic partnership to unlock value at the
Altar copper-gold project in the province of
San Juan, Argentina, 180km west of the city
of San Juan.
During 2018, Regulus Resources spun
out its Argentine assets, including the
Rio Grande project, into a newly formed
company, Aldebaran Resources, which has
entered into a joint venture and option
agreement with Stillwater Canada (an
indirect subsidiary of Sibanye-Stillwater) to
acquire up to an 80% interest in Peregrine
Metals, a wholly owned subsidiary of
Sibanye-Stillwater, which owns the Altar
copper-gold project.
A drill programme to test the deep
extensions down to 1,500m depth of
the Quebrada de la Mina (QDM)-radio-
porphyry, Altar East and Altar Central
was conducted in 2018. The core drilling
programme of 4,923m was completed with
three new holes and one drillhole extension
with maximum depths of 1,540m from
surface. In addition, work continued on
extension of the QDM ground magnetic
survey, the talus fine geochemical survey
and surface prospecting.
In terms of the agreement, Sibanye-Stillwater
will retain a direct interest in the Altar project
of either 40% or 20% (should Aldebaran
Resources exercise its additional earn-in
option), as well as indirect exposure to all
Aldebaran assets (including the Rio Grande
project) through its 19.9% shareholding in
Aldebaran Resources.
The Rio Grande project (owned and
managed by Aldebaran Resources) is an
iron oxide copper-gold type, copper-gold
exploration stage project in north-western
Argentina, approximately 1,400km north-
west of Buenos Aires. Lindero, a Fortuna
Silver property, 10km from Rio Grande with
a similar type of mineral deposit, began
development in 2018 and initial production
is expected in 2019.
Altar project (Argentina)
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION TECHNOLOGY AND
INNOVATION
STRATEGY DEVELOPMENTS IN 2018
The Technology and Innovation department
has transformed in terms of its research and
development focus, corporate and regional
alignment strategies and management of
internal and external initiatives, ensuring
that the resourcing of initiatives remains
aligned with the growth and transformation
of the organisation.
Technology and Innovation is now contained
within the Group Technical function with the
intention of implementing a comprehensive
and cohesive global technology and
innovation strategy that will be implemented
by appropriate structures in each geography.
The focus will be on value creation through
three key tiers, namely:
• The strategic long-term tier will operate
from a global perspective and manage
the consolidation of long-term internal
initiatives and strategies that have
global relevance, such as the digital
transformation theme. The strategic
tier will also be responsible for external
research and development initiatives and
partnerships with research institutions.
• The medium-term tactical tier will
operate from a regional or commodity-
specific perspective and be responsible
for technology and innovation initiatives
within the relevant geography or
commodity. The tactical tier will manage
programmes that form part of the
strategic tier’s portfolio of initiatives,
establish centres of excellence for themes
that have global relevance or adopt
technologies that have been proven in
alternate regional or commodity specific
centres of excellence. The tactical tier
will also be responsible for implementing
technology and innovation culture and
change frameworks that are developed
by the strategic tier, ensuring a common
global technology and innovation identity.
• The short-term executional tier will
maintain focus on implementing quick-
win initiatives as well as continuous
improvement programmes that are
supplemented by technology.
Sibanye-Stillwater supports projects
and programmes that contribute to the
sustainability of the organisation through
measurable improvement of the following:
The Mandela Mining Precinct’s research
agenda progressed well in 2018 and is
expected to deliver tangible value in various
forms in 2019.
• Safety
• Environmental performance
• Organisational and operational
efficiencies, yielding maximum return on
capital employed
• Operational transparency, creating greater
insight and enabling more proactive
management
• Education, training and skills
• Our ability to support secondary industries
with sectoral transfer of skills, equipment
and technology
Sibanye-Stillwater continues to drive
technology and innovation as a strategic
imperative.
Key technology and innovation
partnerships and initiatives
MANDELA MINING PRECINCT
The Mandela Mining Precinct, an outcome of
the government-supported Mining Phakisa
process, and previously referred to as the
Mining Precincts’ Innovation Hub, was
formally opened on the 14 September 2018
by our CEO Neal Froneman in his capacity as
Vice President of the Minerals Council South
Africa. The opening was attended by the
Minister of Science and Technology as well as
the Minister of Mineral Resources.
The Mandela Mining Precinct creates
a space for researchers from various
institutions and organisations to collaborate
and work together, enabling greater
access to researchers and mining staff. The
function of the precinct is to co-ordinate
research activities towards the revitalisation
of South Africa’s mining operations through
the development of next-generation
mining systems.
“We continue to
drive technology and
innovation as a strategic
imperative.”
A student works with DigiMine at the University of the Witwatersrand (Wits) in Johannesburg, South Africa
Sibanye-Stillwater Integrated Report 2018 73
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DELIVERING VALUE FROM OPERATIONS, PROJECTS AND TECHNOLOGY
CONTINUED
SIBANYE-STILLWATER DIGITAL
MINING LABORATORY
The Sibanye-Stillwater and the University of
the Witwatersrand (Wits) Mining Institute’s
(WMI) Digital Mining Laboratory (DigiMine),
the result of a long-term commitment by
Sibanye-Stillwater to relevant research
institutions in South Africa, was officially
launched in 2018. The WMI and DigiMine
have demonstrated their ability to add value
from a fundamental and applied research
perspective and Sibanye-Stillwater has
elected to provide an additional
R10 million annually for the next three years.
The funding is in line with a provision of the
stream finance arrangement. The funding
will be directed to five core focus areas:
• Fast-tracking of WMI-initiated
technologies and prototypes through
DigiMine, in partnership with the Wits
Siemens Solutions Laboratory
• Fast-tracking of mine seismicity research
• Enhancing the sustainability of the WMI
and DigiMine
• Enhancing the delivery structure for the
research and development agenda
• The creation of the Sibanye-Stillwater
Health and Safety DNA project
Sibanye-Stillwater’s total investment in
tertiary institutions is now R20 million per
annum, inclusive of the aforementioned, the
original R5 million commitment to DigiMine
and a R5 million investment in the University
of Johannesburg’s mining engineering
faculty, which is being used to establish
complimentary infrastructure that supports
Sibanye-Stillwater’s long-term research and
development strategy.
Research is conducted at DigiMine offices
74
Sibanye-Stillwater Integrated Report 2018
DIGITAL TRANSFORMATION
Thematically, digital transformation is the
only strategic technology pillar that is
applicable to all aspects of the organisation.
As such, a dedicated functional and
governing committee, comprised of relevant
representation from Group Technical, and the
SA and US operations, has been established.
The digital transformation steering committee
forms the fundamental base of the digital
transformation initiative and is suitably
resourced with an agile, multi-disciplinary
team that will be focusing on value realisation
across the entire mining value chain.
During the establishment of the initiative,
it became apparent that there is significant
value in leveraging external expertise in
order to fast track ideation and prioritisation
of key strategic aspects of the process and
initiatives. Consequently, Sibanye-Stillwater
has established an advisory panel of globally
renowned disruptors from various industries
and institutions. The value of the advisory
committee has been immediate and they
have contributed substantially to the current
state of the initiative by accelerating our
understanding of the theme.
The vision of Sibanye-Stillwater’s digital
transformation initiative is to enhance value
creation through digitalisation to create
a prescriptive data-driven organisation,
effective in the safe, sustainable and
responsible extraction and beneficiation of
our resources.
With the above in place, Sibanye-Stillwater
has developed a digital transformation
strategy that is aligned with that of the
organisation. In addition, most of the SA
operations’ teams have begun the execution
of the strategy and technological road map
development with the Stillwater operations
planned for early 2019. The key deliverable
for 2019 will be a long-term programme
that aims to create an integrated,
transparent insightful, concise, prescriptive,
effective and safe operating organisation.
In addition, several immediate high-value
initiatives have been identified and initiated
with the expectation of relative value
realisation in the first half of 2019.
ADVANCED TRANSPORT AND
MACHINERY PROGRAMME
mobile machinery. Two separate prototypes
for battery and diesel locomotives have
progressed well and are showing promising
results. While there have been several
technical difficulties, solutions to the
difficulties are in the process of being
completed. Both prototypes are expected
to enter production trials in the first half
of 2019 with the intention of finalising a
commercial variant for implementation by
the end of 2019.
Furthermore, significant opportunity has
been identified in applying analytics and
deep learning algorithms to information
that resides in manual reports and numerous
digital systems, installed on fixed and
mobile machinery, to improve overall
equipment and processing effectiveness.
In 2017, Sibanye-Stillwater ran a data
consolidation and advanced analytics project
that sought to understand the value of
this in the process efficiency environment.
The outcome of the initiative was in line
with general research on the subject and
the model suggested that there was the
potential for as much as 1%-2% recovery
improvement at the processing plant in
question (research notes 1.5%-2.5%).
As such, the initiative has been progressed
to operational proof of concept, in addition
to two separate initiatives for overall
equipment efficiency on trackless mobile
machinery and locomotives, with results
expected in the first half of 2019.
STOPE MECHANISATION
AND CURRENT MINING
IMPROVEMENT PROGRAMME
Sibanye-Stillwater’s ongoing organisational
diversification requires that continuous
re-ranking of technology and innovation
initiatives is performed to ensure that each
initiative is still relevant in terms of impact,
cost and complexity, reserve applicability
and interdependence. During a revision of
all technology and innovation initiatives
in the Group, the decision was made to
temporarily suspend stope mechanisation
and current mining improvement projects
in lieu of the progress made with the digital
transformation programme.
Significant advancement was made towards
understanding the application of newly
developed battery technology in mobile
assets, namely locomotives and trackless
Sibanye-Stillwater will continue to maintain
a robust pipeline of prospective projects
for implementation as and when resources
become available to do so.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINERAL RESOURCES AND MINERAL RESERVES – SUMMARY
Sibanye-Stillwater’s Mineral
Resources and Mineral Reserves
are reported in accordance with
the SAMREC Code, and are fully
compliant in all material respects
with the requirements of the code.
The statement of Mineral Resources and Mineral Reserves as at
31 December 2018 outlines the Mineral Resources and Mineral Reserves
at each of our operating mines and projects, and includes, for the first
time, the attributable portions of the DRDGOLD and Aldebaran Mineral
Resources and Mineral Reserves acquired during 2018. The Mineral
Resources and Mineral Reserves are compared to the last full declaration
made as at 31 December 2017, and therefore include a 12-month
period of production depletion due to mining activity.
The statement is underpinned by appropriate Mineral Resources
management processes and protocols that ensure adequate
corporate governance.
This section is a condensed overview of the Mineral Resource and
Mineral Reserves Report 2018, which contains a comprehensive
review of Mineral Resources and Mineral Reserves as at
31 December 2018, and details the location, geology, mining,
processing, operational statistics and changes at each of the
Group’s mining operations and projects. This detailed statement of
Mineral Reserves and Resources is available online at
www.sibanyestillwater.com.
The commodity prices used for the Mineral Reserve declaration
approximate the historic three-year average commodity prices, in
accordance with the SEC’s guidelines. As a result, the following
commodity prices were used at an exchange rate of R13.55/US$.
Precious metals
Gold
Platinum
Palladium
Rhodium
Iridium
Ruthenium
US$/oz
1,238
959
819
1,180
814
102
2018
ZAR/oz
16,796
12,994
11,097
15,989
11,030
1,382
2018
ZAR/kg
540,000
417,781
356,791
514,058
354,613
44,436
Base metals
US$/lb
US$/tonne
ZAR/tonne
Nickel
Copper
Cobalt
Uranium oxide* (U3O8)
Chrome oxide* (Cr2O3)
42% concentrate
* Long-term contract price
4.99
2.68
20.00
37.00
11,009
149,172
5 ,913
80,121
44,092
597,441
81,569
1,105,266
0.46
207
2,804
2E and 4E PGM Mineral Resources (204.4Moz)
Gold Mineral Resources (104.2Moz)
Copper Mineral Resources (18,795.8Mlb)
1
2
12
17
%
23
82.2Moz
Rustenburg
4.7Moz
Kroondal
Mimosa
6.7Moz
Rustenburg Tailings 2.6Moz
3
1
40
2
6
7
4
%
18
10
8
2
45
4
%
95
Stillwater
East Boulder
SA projects
Other projects
45.8Moz
34Moz
24.4Moz
4Moz
7.5Moz
Beatrix
Cooke
4.2Moz
Driefontein 10.1Moz
8.3Moz
Kloof
WRTRP
(Cooke TSFs) 2.2Moz
DRDGOLD 18.6Moz
SA projects 46.7Moz
Other projects 6.6Moz
Altar
Marathon
Rio Grande
17,931.0Mlb
730.1Mlb
134.7Mlb
2E and 4E PGM Mineral Reserves (46.1Moz)
Gold Mineral Reserves (16.6Moz)
Uranium Mineral Resources (78.7Mlb)
24
%
32
6
31
3
4
1
7
27
14
%
31
20
34
%66
Rustenburg 14.5Moz
1.5Moz
Kroondal
1.8Moz
Mimosa
Rustenburg Tailings 2.6Moz
14.8Moz
Stillwater
10.9Moz
East Boulder
1.2Moz
Beatrix
Cooke
0.2Moz
Driefontein 3.3Moz
Kloof
5.2Moz
DRDGOLD 2.2Moz
4.5Moz
Projects
Beatrix
27.0Mlb
WRTRP (Cooke TSFs) 51.7Mlb
Sibanye-Stillwater Integrated Report 2018 75
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINERAL RESOURCES AND MINERAL RESERVES – SUMMARY CONTINUED
KEY ASPECTS OF OUR MINERAL RESOURCE AND MINERAL RESERVE STATEMENTS
AS AT 31 DECEMBER 2018
US PGM operations
SA PGM operations
Total 2E PGM Mineral Resources estimated at 79.860Moz, a decrease
of 0.75% from 31 December 2017. Mineral Resources remain
largely unchanged with mining depletions off-set by resource growth
primarily at the Blitz section of the Stillwater mine.
Total estimated 4E PGM Mineral Resources declined marginally to
96.181Moz (-1.60%) as compared to 31 December 2017, primarily
due to mining depletion. During 2018, Blue Ridge was reclassified
as a project.
Total 2E PGM Mineral Reserves estimated at 25.614Moz, an increase
of 16.94% from 31 December 2017. The pleasing 17% increase in
Mineral Reserve ounces was primarily in the Blitz project area of the
Stillwater Mine where approximately 3.294Moz of Mineral Reserves
were added at a 2E PGM grade of 23.7 g/t. The increase in Mineral
Reserves supports the planned expansion of production from the Blitz
area of the Stillwater Mine, which remains on schedule.
US PGM operations – Mineral Reserve reconciliation
Total 4E PGM Mineral Reserves estimated at 20.448Moz, a decline
of 8.54% from 31 December 2017. The total decline of 1.910Moz
is in line with expectations and life-of-mine extraction plans, and is
principally attributed to depletion of 1.557Moz from mining activities
during 2018, and a 0.514 Moz decrease due to the removal of sub-
economic ounces at the end of life of mine as combined mine (LoM)
production volumes drop below economically sustainable levels.
2E PGM (Moz)
SA PGM operations – Mineral Reserve reconciliation
21.903
(0.633)
1.883
(0.051)
2.386
0.126
25.614
Factors
31 December 2017
Depletion during 2018
Inclusions
Estimation
Geological interpretation1
Technical factors
Exclusions/reductions
Economic valuation2
Boundary changes
31 December 2018
4E PGM (Moz)
22.358
(1.557)
0.247
0.005
0.100
0.142
(0.601)
(0.514)
(0.087)
20.448
1 Updates in geological interpretations and modifying factors
2 Removal of sub-economic mineral reserves at the end of LoM due to
tail cutting
Projects
Total 4E PGM Mineral Resources of 24.350Moz remain unchanged
from 2017. The only notable change has been the reclassification of
Blue Ridge Platinum as a project, as opposed to an operation in 2017.
Factors
31 December 2017
Depletion during 2018
Area inclusions/exclusions1
Geological interpretation
Estimation2
Economic valuation
31 December 2018
1 Expansion in the Blitz project area
2 Higher than average tonnes and grade at Blitz
Projects
Copper Mineral Resources increased by 0.72% to 18,795.8Mlb,
and gold Mineral Resources by 3.75% to 6.558Mlb due to the
inclusion of 19.9% of the attributable Mineral Resources of the Rio
Grande Project, owned by Aldebaran Resources Inc (Aldebaran). This
follows the conclusion of an arrangement with Regulus Resources
Inc, Aldebaran’s holding company, whereby Aldebaran will obtain
an option to earn in up to 80% of the company’s Altar Project, in
exchange for an upfront payment and the shareholding in Aldebaran.
Project PGM Mineral Resources remained unchanged.
Employees at the Mimosa joint venture operations in Zimbabwe
76
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA gold operations
Mineral Resources estimated at 33.950 Moz, an increase of
1.165Moz (3.55%), largely due to the inclusion of the attributable
38% share of the DRDGOLD’s operations (3.787Moz), offset by a
decrease of 2.622Moz at the existing gold operations. This decrease
was informed by depletions, and the restructuring of marginal shafts
at the Beatrix and Driefontein mines, which are currently the subject
of a Section 189A consultation process and may lead to downsizing
or closure, as well as the sale of certain West Rand Tailings
Retreatment Project (WRTRP) assets.
Mineral Reserves estimated at 12.108 Moz, a decline of 1.21Moz
(9.10%), decrease was largely a result of:
• Depletion of 1.162Moz from mining activities during 2018
• Possible restructuring of the marginal Beatrix 1 and Driefontein
2, 6 and 8 shafts, resulting in 2.373Moz being removed from the
Mineral Reserve base
• Changes in pay limits (economic factors) resulting in 0.764Moz
not being deemed economically viable to extract under current
assumptions
• Geological and structural model adjustments at Beatrix 1 and
Driefontein 1 and 5 shafts, and resulting geotechnical pillar
adjustments (-0.865 Moz)
These decreases were offset by:
• Additional Mineral Reserves of 1.204Moz defined as a result
of ongoing exploration and reserve delineation at the Kloof
operations
• A further 2.245Moz were added, based on the 38% attributable
Mineral Reserves from DRDGOLD following successful completion
of this transaction during 2018
SA gold operations – Mineral Reserve reconciliation
Factors
31 December 2017
Depletion during 2018
Inclusions
White areas, secondary reefs and surface
Attributable portion from DRDGOLD (38.05%)
Exclusions/reductions
Removal of reserves at sub-economic operations
Pay limit
Geological and geotechnical changes
Estimation
Technical factors
31 December 2018
SA gold projects
Total gold Mineral Resources increased by 21.76% (11.387Moz) to
63.714 Moz. The increase was primarily due to the inclusion of the
attributable underground Mineral Resources of DRDGOLD’s projects.
Total estimated gold Mineral Reserves decreased by 63.95%
(7.940Moz) to 4.476Moz.
• During 2018 the transaction with DRDGOLD was completed
whereby Sibanye-Stillwater sold certain of the WRTRP assets from
Kloof and Driefontein to DRDGOLD in exchange for approximately
38.05% shareholding in DRDGOLD. As a result, the Group no
longer reports these specific Mineral Resources and Mineral
Reserves previously held under the WRTRP but has reported
attributable Mineral Resources and Mineral Reserves of DRDGOLD.
• The Mineral Resources of the Cooke portion of the WRTRP have
been retained and remain unchanged at 2.245Moz. No reserves
are currently reported for the remaining portion of the WRTRP
while the economic feasibility of the remaining assets are being
investigated.
• In addition, a detailed review was undertaken of the Group’s
capital projects during 2018. At current economic parameters,
and considering capital prioritisation, a decision was made to
cease further development of the Driefontein depth extension (DE)
project (1.707Moz Mineral Reserve in 2017) but to continue with
the Kloof DE project.
SA gold projects – Mineral Reserve reconciliation
Factors
31 December 2017
Depletion during 2018
Inclusions
Burnstone estimation model
Exclusions/reductions
Exclusion of Driefontein 5 Shaft DE project
Pay limit change – Kloof 4 Shaft DE project
De Bron Merriespruit tail end management
Gold (Moz)
12.416
0.000
0.011
0.011
(7.951)
(1.707)
(0.106)
(0.012)
(6.126)
4.476
Gold (Moz)
Exclusion of selected WRTRP assets
31 December 2018
SA URANIUM OPERATIONS
13.321
(1.162)
3.448
1.204
2.245
(4.002)
(2,373)
(0.764)
(0.865)
0.310
0.193
Uranium (U3O8) Mineral Resources of 78.692Mlb declined 36.05%
due to the sale of a portion of the WRTRP to DRDGOLD.
No Mineral Reserves were declared following the sale of the Kloof
and Driefontein tailings dams of the WRTRP to DRDGOLD. The Cooke
assets, which were excluded from the transaction, are now reported
as Mineral Resources only due to economic considerations as a
standalone entity.
SA uranium – Mineral Reserve reconciliation
12.108
Factors
31 December 2017
Depletion during 2018
Exclusion of WRTRP from Reserves
31 December 2018
U308 (Mlb)
96.083
0.000
(96.083)
0.000
Sibanye-Stillwater Integrated Report 2018 77
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINERAL RESOURCES AND MINERAL RESERVES – SUMMARY CONTINUED
GOVERNANCE RELATING TO MINERAL
RESOURCES AND MINERAL RESERVES
Sibanye-Stillwater reports its Mineral Resources and Mineral Reserves
in accordance with the SAMREC Code, the updated Section 12 of
the JSE Listings Requirements and the SEC Industry Guide 7, which is
aligned with the guiding principles of Sarbanes-Oxley in the United
States. The Altar, Marathon and Rio Grande resources are compliant
with the NI 43-101 guidelines, which is part of the CRIRSCO group of
reporting codes, and recognised by SAMREC and the South African
Code for the Reporting of Mineral Asset Valuation (the Samval Code).
In accordance with SEC requirements, Mineral Reserves are based on
three-year average trailing commodity prices.
Guided by a commitment to best practice corporate governance,
the statement has been reviewed by each region’s technical services
function. Independent reviews are also conducted on a two-year
cycle with no material shortcomings to date. The SA gold operations
are currently undergoing external reviews on the 2018 statement,
while the US operations were audited by the Mineral Corporation in
2017. The SA PGM operations were externally audited during 2017.
The Mineral Resources and Mineral Reserves are estimated at a
particular date, and are affected by fluctuations in mineral prices, the
rand-dollar exchange rate, operating costs, mining permits, changes
in legislation and operating factors, among others. Although all
permits may not be finalised and in place at the time of reporting,
there is no reason to expect that these will not be granted. However,
the length of the approval process for such permits may have an
impact on the schedules stated.
All statement figures are managed by Sibanye-Stillwater with the
exception of those for Mimosa, Altar, Rio Grande and DRDGOLD.
Mineral Resources are reported inclusive of Mineral Reserves and
production volumes are reported in metric tonnes (t).
Gold and uranium estimates are reported separately from each other
therefore no gold equivalents are stated to avoid potential anomalies
as a result of year-on-year metal price differentials. The statement for
the SA PGM operations reports 4E and 6E PGM, which are platinum,
palladium, rhodium and gold (4E), plus iridium and ruthenium (6E).
Individual proportions of the 4E and 6E PGM are determined via prill
splits as determined from the assays. The statement for the US PGM
operations reports 2E PGM, which are palladium and platinum.
All financial models used to determine Mineral Reserves are based on
current tax regulations at 31 December 2018.
COMPETENT PERSONS
For the SA gold operations, the lead competent person designated in
terms of the SAMREC Code, with responsibility for the consolidation
and reporting of their Mineral Resources and Mineral Reserves and
for overall regulatory compliance of these figures, is:
Gerhard Janse van Vuuren
Kloof Gold Mine, Farm Rietfontein, Gauteng
Private Bag X190, Westonaria, 1780
Gerhard gave his consent for the disclosure of the 2018 Mineral
Resources and Mineral Reserves Statement. Gerhard [GDE (Mining
Eng), MBA, MSCC and BTech (MRM)] is registered with The Southern
African Institute of Mining and Metallurgy (SAIMM) (706705) and has
31 years’ experience relative to the type and style of mineral deposit
under consideration.
For the SA PGM operations, the lead competent person designated
in terms of the SAMREC Code, who takes responsibility for the
consolidation and reporting of these Mineral Resources and Mineral
Reserves, and for the overall regulatory compliance of these figures, is:
Andrew Brown
Sibanye Rustenburg Platinum Mines, Hex River Complex,
Old Mine Road, Rustenburg, Bleskop, 0292
PO Box Bleskop 1,0292
Andrew gave his consent for the disclosure of the 2018 Mineral
Resources and Mineral Reserves Statement. Andrew [MSc (Mining
Eng]) is registered with SAIMM (705060) and has 34 years’
experience relative to the type and style of mineral deposit under
consideration.
For the US PGM operations, the lead competent person designated
in terms of the SAMREC Code, who takes responsibility for the
consolidation and reporting of the Stillwater and East Boulder Mineral
Resources and Mineral Reserves, and for the overall regulatory
compliance of these figures, is:
Brent La Moure
Stillwater Mine, 26 West Dry Creek Circle, Montana
Suite 400, Littleton, Colorado, 80120
Brent gave his consent for the disclosure of the 2018 Mineral
Resources and Mineral Reserves Statement. Brent [BSc (Mining Eng])
is registered with the Mining and Metallurgical Society of America
(01363QP) and has 23 years’ experience relative to the type and style
of mineral deposit under consideration.
For the foreign project Mineral Resource estimation, the competent
person is Stanford Foy. Stanford is registered with the Society
for Mining, Metallurgy and Exploration Inc in the United States
(4140727RM), and has 28 years’ experience relative to the type and
style of mineral deposit under consideration.
Currently, Brent and Stanford are contracted with Sibanye-Stillwater
but were previously employees of the Group.
78
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION US 2E PGM: Mineral Resource and Mineral Reserve statement as at 31 December 2018
OPERATIONS
2018
2017 OPERATIONS
2018
2017
Mineral Resources
Mineral Reserves
Tonnes
(Mt)
Grade
(g/t)
2E PGM
(Moz)
2E PGM
(Moz) Underground
Tonnes
(Mt)
Grade
(g/t)
2E PGM
(Moz)
2E PGM
(Moz)
Underground
Stillwater
Measured
Indicated
Inferred
Total
East Boulder
Measured
Indicated
Inferred
Total
Stillwater
19.7
3.214
2.527 Proved
17.4
15.738
12.132 Probable
17.1
26.877
27.485
17.3
45.829
42.144 Total
East Boulder
14.7
1.849
1.687 Proved
15.1
13.149
14.689 Probable
15.4
19.033
21.943
15.2
34.031
38.319 Total
5.1
28.2
48.9
82.2
3.9
27.2
38.4
69.5
Underground – Total
151.7
16.4
79.860
80.463 Underground – Total
PROJECTS
Marathon
Measured
Indicated
Inferred
Total
93.4
57.9
0.4
151.7
0.9
0.8
0.1
0.8
2.693
2.693
1.290
1.290
0.001
0.001
3.982
3.982
3.4
20.5
19.3
2.123
1.727
19.2
12.634
9.792
23.9
19.2
14.756
11.519
2.9
19.7
22.5
46.4
14.6
15.1
1.342
1.018
9.515
9.366
15.0
10.858
10.384
17.2
25.614
21.903
OPERATIONS AND PROJECTS
OPERATIONS AND PROJECTS
TOTAL
303.4
8.9
83.842
84.445 TOTAL
46.4
17.2
25.614
21.903
Gold (projects in Argentina): Mineral Resource and Mineral Reserve statement as at 31 December 2018
PROJECTS
Altar
Measured
Indicated
Inferred
Total
Rio Grande
Measured
Indicated
Inferred
Total
Mineral Resources
2018
Grade
(g/t)
Tonnes
(Mt)
2017
Gold
(Moz)
Gold
(Moz)
1,005.9
1,051.5
556.6
2,614.0
14.1
8.2
22.3
0.1
0.1
0.1
0.1
0.4
0.3
0.3
2.981
2.981
2.253
2.253
1.087
1.087
6.321
6.321
0.162
0.074
0.237
PROJECTS – TOTAL
2,636.3
0.1
6.558
6.321
Mineral Reserves
2018
Grade
(g/t)
Tonnes
(Mt)
2017
Gold
(Moz)
Gold
(Moz)
Sibanye-Stillwater Integrated Report 2018 79
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
MINERAL RESOURCES AND MINERAL RESERVES – SUMMARY CONTINUED
Copper (projects in Canada and Argentina): Mineral Resource and Mineral Reserve statement as at 31 December 2018
Mineral Reserves
2018
Gold
Projects
Sulphide
copper
grade (%)
Sulphide
copper
(Mlb)
2017
Sulphide
copper
(Mlb)
PROJECTS
2018
2017 PROJECTS
Mineral Resources
Sulphide
copper
grade (%)
Sulphide
copper
(Mlb)
Sulphide
copper
(Mlb)
Tonnes
(Mt)
1,005.9
1,051.5
556.6
0.34
0.30
0.28
7,458.0
7,458.0
7,053.0
7,053.0
3,420.0
3,420.0
2,614.0
0.31
17,931.0
17,931.0
14.1
8.2
22.3
93.4
57.9
0.4
151.7
0.30
0.23
0.27
0.23
0.20
0.29
0.22
93.2
41.5
134.7
473.5
254.0
2.6
473.5
254.0
2.6
730.1
730.1
Altar
Measured
Indicated
Inferred
Total
Rio Grande
Measured
Indicated
Inferred
Total
Marathon
Measured
Indicated
Inferred
Total
PROJECTS – TOTAL
2,788.0
0.31
18,795.8
1,8661.1
Area surrounding the Rio Grande project in Argentina
80
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
SA 4E and 6E PGM: Mineral Resource statement as at 31 December 2018
Mineral Resources
2018
6E Grade
(g/t)
4E Grade
(g/t)
4E PGM
(Moz)
6E PGM
(Moz)
OPERATIONS – SOUTH AFRICA
UNDERGROUND
Kroondal (50% attributable)
Measured
Indicated
Inferred
Total
Rustenburg
Measured
Indicated
Inferred
Total
Blue Ridge* (50% attributable)
Measured
Indicated
Inferred
Total
OPERATIONS – ZIMBABWE
Mimosa (50% attributable)
Measured
Indicated
Inferred
Inferred (Oxides)
Total
Underground – Total
SURFACE
Surface rock dumps and tailings storage facilities
Rustenburg (TSF)
Total
OPERATIONS – TOTAL
PROJECTS – SOUTH AFRICA
UNDERGROUND
Vygenhoek
Measured
Indicated
Inferred
Total
Zondernaam
Tonnes
(Mt)
38.8
4.9
2.5
46.2
371.9
123.5
15.4
510.8
28.4
15.4
4.4
9.0
57.2
614.1
75.5
75.5
689.6
1.4
1.4
3.7
4.4
3.6
3.8
5.7
6.1
6.3
5.8
3.9
3.8
3.9
3.6
3.8
5.5
1.2
1.2
5.02
3.1
3.7
3.0
3.2
4.9
5.3
5.6
5.0
3.7
3.6
3.6
3.5
3.6
4.7
1.1
1.1
4.55
5.1
5.1
6.4
6.4
77.4
77.4
Measured
Indicated
Inferred
Total
Hoedspruit
Measured
Indicated
Inferred
Total
Blue Ridge*
Measured
3.3
3.2
Indicated
3.3
Inferred
3.3
Total
5.6
PROJECTS – TOTAL
4.5
UNDERGROUND, SURFACE AND PROJECTS – TOTAL
* In 2017 Blue Ridge was classified as an operation but was reclassified as a project in 2018
14.8
4.1
4.2
23.1
134.5
824.1
28.1
4.5
32.6
5.5
5.6
5.5
2017
4E PGM
(Moz)
3.146
1.472
0.261
4.879
59.212
21.235
2.762
83.209
1.570
0.420
0.440
2.430
3.570
1.776
0.512
0.981
6.839
97.357
3.907
0.593
0.234
4.734
58.207
21.222
2.755
82.185
4.590
0.695
0.285
5.571
68.348
24.204
3.128
95.681
3.367
1.772
0.514
0.998
6.652
93.571
3.570
1.887
0.548
1.033
7.038
108.290
2.610
2.610
96.181
2.936
2.936
111.226
2.818
2.818
100.175
0.230
0.230
15.900
15.900
4.980
0.810
5.790
1.570
0.420
0.440
2.430
24.350
120.531
0.230
0.230
15.900
15.900
4.980
0.810
5.790
21.920
122.095
Sibanye-Stillwater Integrated Report 2018 81
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
MINERAL RESOURCES AND MINERAL RESERVES – SUMMARY CONTINUED
SA 4E and 6E PGM: Mineral Reserve statement as at 31 December 2018
OPERATIONS – SOUTH AFRICA
UNDERGROUND
Kroondal (50% attributable)
Proved
Probable
Total
Rustenburg
Proved
Probable
Total
Blue Ridge (50% attributable)
Proved
Probable
Total
OPERATIONS – ZIMBABWE
Mimosa (50% attributable)
Proved
Probable
Total
Underground – Total
Surface
Surface rock dumps and tailings storage facilities
Rustenburg (TSF)
Surface – Total
UNDERGROUND, SURFACE AND PROJECTS – TOTAL
Mineral Reserves
2018
6E Grade
(g/t)
4E Grade
(g/t)
2.6
0.0
2.6
3.8
4.2
3.8
3.5
3.4
3.5
3.6
1.1
1.1
2.8
3.0
0.0
3.0
4.5
4.9
4.5
3.7
3.6
3.7
4.2
1.2
1.2
3.2
Tonnes
(Mt)
18.4
0.0
18.4
110.9
6.9
117.8
10.9
5.6
16.5
152.7
75.5
75.5
228.2
4E PGM
(Moz)
6E PGM
(Moz)
1.536
0.000
1.536
13.516
0.945
14.461
1.792
0.000
1.792
15.979
1.085
17.064
2017
4E PGM
(Moz)
1.243
0.561
1.804
14.550
1.156
15.706
1.234
0.607
1.841
1.309
0.646
1.955
1.423
0.607
2.030
17.838
20.811
19.540
2.610
2.610
2.936
2.936
2.818
2.818
20.448
23.747
22.358
82
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
Gold: Mineral Resource and Mineral Reserve statement as at 31 December 2018
Mineral Resources
31 Dec
Mineral Reserves
SOUTH AFRICA
OPERATIONS
UNDERGROUND
31 Dec 2018
2017 SOUTH AFRICA
31 Dec 2018
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
OPERATIONS
UNDERGROUND
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
31 Dec
2017
Gold
(Moz)
Beatrix
Measured
Indicated
Inferred
Total
Cooke
Measured
Indicated
Inferred
Total
Driefontein
Measured
Indicated
Inferred
Total
Kloof
Measured
Indicated
Inferred
Total
Underground – Total
SURFACE
17.2
21.6
0.0
38.8
4.0
3.5
3.2
10.7
11.9
13.9
7.2
4.9
3.3
6.0
13.1
10.1
12.0
11.8
14.1
10.6
Beatrix
5.394 Proved
2.310 Probable
0.004
7.708 Total
Cooke
1.689 Proved
1.130 Probable
1.220
4.039 Total
4.003
3.433
0.004
7.440
1.689
1.130
1.220
4.039
Driefontein
5.386
4.732
8.126 Proved
2.897 Probable
0.005
7.1
3.3
4.2
2.1
0.960
0.227
0.933
1.152
10.5
3.5
1.187
2.086
7.4
6.3
7.4
7.6
1.760
1.542
3.602
1.670
25.8
12.2
10.118
11.029 Total
13.7
7.5
3.302
5.272
12.4
2.3
0.2
14.9
90.2
18.1
12.4
12.6
17.1
7.216
0.905
0.089
8.211
Kloof
7.538 Proved
2.074 Probable
0.085
9.697 Total
10.3
29.808
32.473 Underground – Total
SURFACE
13.2
9.5
22.6
46.8
8.3
4.9
6.9
6.3
3.518
1.503
3.516
2.135
5.020
5.652
9.509
13.010
Surface rock dumps and tailings storage facilities
Surface rock dumps and tailings storage facilities
Beatrix (Indicated)
Cooke (Measured)
Cooke (Indicated)
Driefontein (Indicated)
Kloof (Indicated)
DRDGOLD
ERGO (Measured)
ERGO (Indicated)
ERGO (Inferred)
FWGR (Measured)
3.8
16.1
1.1
1.3
7.7
122.9
129.5
76.3
93.6
0.4
0.3
0.4
0.5
0.5
0.3
0.3
0.2
0.3
0.043
0.144
0.015
0.021
0.131
1.209
1.054
0.489
1.035
0.041 Beatrix (Probable)
0.052 Cooke (Proved)
0.007 Cooke (Probable)
0.019 Driefontein (Probable)
0.192 Kloof (Probable)
DRDGOLD
ERGO (Proved)
ERGO (Probable)
FWGR (Proved)
FWGR (Probable)
Surface – Total
452.3
0.3
4.142
0.311 Surface – Total
OPERATIONS – UNDERGROUND AND SURFACE
Beatrix
Cooke
Driefontein
Kloof
DRDGOLD (ERGO and FWGR)*
TOTAL
42.6
27.8
27.1
22.6
422.4
542.5
5.5
4.7
7.483
4.198
7.749 Beatrix
4.097 Cooke
11.6
10.139
11.048 Driefontein
11.5
0.3
1.9
8.342
3.787
9.890 Kloof
DRDGOLD (ERGO and FWGR)
33.950
32.784 TOTAL
3.8
16.1
1.1
1.3
7.7
23.9
99.0
68.1
25.6
246.5
14.2
17.2
15.0
30.4
216.6
293.3
0.4
0.3
0.4
0.5
0.5
0.3
0.3
0.4
0.3
0.3
2.7
0.3
6.9
5.3
0.3
1.3
0.041
0.052
0.007
0.019
0.192
0.311
2.127
0.059
5.291
5.844
0.043
0.144
0.015
0.021
0.131
0.232
0.977
0.801
0.234
2.599
1.230
0.159
3.324
5.151
2.245
12.108
13.321
* ERGO is the historical DRDGOLD surface operations located in the East Rand. Far West Gold Recoveries (FWGR) is the project resulting from the sale
of the selected WRTRP assets to DRDGOLD.
Sibanye-Stillwater Integrated Report 2018 83
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
MINERAL RESOURCES AND MINERAL RESERVES – SUMMARY CONTINUED
Gold: Mineral Resource and Mineral Reserve statement as at 31 December 2018 continued
Mineral Resources
31 Dec
Mineral Reserves
SOUTH AFRICA
PROJECTS
UNDERGROUND
31 Dec 2018
2017 SOUTH AFRICA
31 Dec 2018
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz)
PROJECTS
UNDERGROUND
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
31 Dec
2017
Gold
(Moz)
1.707
1.707
7.1
7.1
7.6
7.6
1.740
1.740
0.541 Probable BI
0.541 Total
Beatrix
20.8
20.8
13.6
13.6
9.085
9.085
Driefontein
0.017 Proved BI
7.290 Probable BI
7.308 Total
Kloof
1.162
14.0
2.218
0.976
13.0
16.549
21.018 Total
12.8
14.331
18.880 Probable BI
2.5
5.3
0.431
0.537
34.7
4.9
39.6
0.6
68.6
69.3
27.4
0.9
28.3
23.0
5.3
28.3
67.4
67.4
260.9
210.0
52.3
262.3
262.3
6.0
4.9
4.9
4.7
4.9
4.7
4.5
4.2
4.4
6.8
6.8
7.3
0.3
0.3
0.3
0.3
2.5
5.3
0.431
0.537
0.1
14.1
14.2
2.4
4.3
4.3
0.011
1.934
1.945
0.058
1.876
1.934
15.3
4.3
2.099
2.112
15.3
4.3
2.099
2.112
Burnstone
0.124
0.351 Proved
10.856
8.664 Probable
10.980
9.015 Total
4.163
0.135
4.297
3.307
0.715
4.022
Bloemhoek
4.163 Probable
0.135
4.297 Total
De Bron Merriespruit
3.307 Probable
0.715
4.022 Total
DRDGOLD
Probable
14.795
14.795
Total
61.469
46.201 Underground – Total
32.0
4.3
4.476
6.290
SURFACE
WRTRP 1
5.602 Proved
0.524 Probable
6.126 Total
6.126 Surface – Total
1.721
0.524
2.245
2.245
6.126
6.126
6.126
Beatrix
Indicated BI
Total
Driefontein
Measured BI
Indicated BI
Total
Kloof
Measured BI
Indicated BI
Inferred BI
Total
Burnstone
Measured
Indicated
Total
Bloemhoek
Indicated
Inferred
Total
De Bron Merriespruit
Indicated
Inferred
Total
DRDGOLD
Indicated
Inferred
Total
Underground – Total
SURFACE
WRTRP 1
Measured
Indicated
Total
Surface – Total
PROJECTS – UNDERGROUND AND SURFACE
Total
523.1
3.8
63.714
52.327 Total
32.0
4.3
4.476
12.416
SA GOLD OPERATIONS AND PROJECTS – UNDERGROUND AND SURFACE
TOTAL
1,065.6
2.9
97.663
85.111 TOTAL
325.3
1.6
16.584
25.737
AI = Above infrastructure
BI = Below infrastructure
1 Relates to the remaining WRTRP assets, which are the Cooke tailings storage facilities
84
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
Uranium: Mineral Resource and Mineral Reserve statement as at 31 December 2018
OPERATIONS
31 Dec 2018
2017 OPERATIONS
31 Dec 2018
Mineral Resources
Mineral Reserves
31 Dec
UNDERGROUND
Beatrix
Measured AI
Indicated AI
Inferred AI
Total
Total
Projects
SURFACE
WRTRP 1
Measured
Indicated
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mlb)
U3O8
(Mlb) UNDERGROUND
Tonnes
(Mt)
Grade
(kg/t)
U3O8
(Mlb)
Beatrix
3.6
7.8
0.0
11.4
11.4
1.086
8.548
8.548 Proved AI
1.069
18.330
18.330 Probable AI
1.101
0.090
0.090
1.074
26.968
26.968 Total
1.074
26.968
26.968 Total
Projects
SURFACE
WRTRP 1
210.0
0.090
41.788
86.147 Proved
52.3
0.086
9.936
9.936 Probable
Surface – Total
262.3
0.089
51.724
96.083 Surface – Total
SA OPERATIONS AND PROJECTS – UNDERGROUND AND SURFACE
TOTAL
273.7
0.130
78.692
123.051 TOTAL
1 Relates to the remaining WRTRP assets, which are the Cooke tailings storage facilities
31 Dec
2017
U3O8
(Mlb)
96.083
96.083
96.083
Sibanye-Stillwater Integrated Report 2018 85
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
SUPERIOR VALUE FOR THE WORKFORCE
APPROACH
Our mining activities improve lives when we are
able to create superior value for our employees by
safely delivering on and exceeding individual and
team performance objectives in alignment with
our key business drivers: safety, cost, volume and
quality.
Significant growth and geographical diversification
in the past three years has challenged our human
resource (HR) function to constantly expand its
knowledge base in order to realise these objectives.
While our overall HR strategy allows for regional
autonomy, performance standards are regularly
reviewed and revised at Group level. Our HR
policies and development programmes are
designed to meet the needs of all employees
within diverse socio-economic environments.
At our US and SA operations, we strive to engage
meaningfully with all employee and organised
labour representatives in terms of our visible felt
leadership principle and our social compact.
In South Africa, our five-year HR strategy, People@
Sibanye-Stillwater, incorporates our employee value
proposition and provides a road map to 2021. It
supports Sibanye-Stillwater’s strategic objectives,
and is aimed at establishing Sibanye-Stillwater as a
transformed, values-based organisation.
Sibanye-Stillwater is a significant employer in
the regions in which it operates – our US PGM
operations are the largest private, industrial
employer in the state of Montana.
STRATEGIC FRAMEWORK
“We strive to engage meaningfully with every
employee and organised labour”
LIVING OUR VALUES
• Engagement forums regulate interaction with organised labour by dealing
with issues as they arise without delay, separating issues at national, regional
and branch level, managing each issue appropriately, and taking ownership of
employee-related matters
• Employees need to trust that our leaders live the values and that they fulfil
their promises
• Our employee value proposition provides for a conducive work environment
and career opportunities for employees (our aim is for 80% internal recruitment).
• “Modern mining promise”: We aim to be a transformed organisation that goes
beyond compliance
• Stakeholder engagement: HR has a role to play within communities where
current and future employees reside
• Stakeholder mapping: We identify and categorise all our stakeholders to ensure
that we understand their different needs, levels of influence and interests, and
thus determine the levels of engagement required in each category.
• Leadership development: Our leaders strive to engage meaningfully
with employees
• Social contributions to the communities in which our employees live: We focus
on making valuable socio-economic contributions
• Management and the unions are encouraged to clarify roles
Building
leadership
capacity and
growing our
talent
Creating value
for our
employees
Culture
transformation
journey
Building
constructive
stakeholder
relationships
Integration and
harmonisation
across the Group
OUTCOMES
ATTRACT
GROW
ENABLE
RETAIN
86
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “Providing a
conducive, safe,
inclusive working
environment”
EMPLOYEE VALUE PROPOSITION
• Being an employer of choice among graduates in core disciplines: Providing a conducive, safe,
inclusive working environment, in which employees are valued, with opportunities for a rewarding
career as well as learning and skills development. Refer to training and development
• Building mutually beneficial, constructive relationships, based on trust and respect:
Ensuring we act in line with our CARES values, deliver on our promises, and engage transparently
and honestly with employees and all other stakeholders. Furthermore, establishing Sibanye-Stillwater
as a values-based, modern mining company has been identified as key in addressing our safety
performance. See Ensuring safe production, and Occupational health and well-being
• Developing leadership capacity: Enhancing senior management skills required for meaningful
engagement so that leaders are able to motivate employees to reach their full potential. See
organisational and leadership development and talent management
• Contributing to socio-economic development: Sharing value created by paying salaries and
wages spent within communities, by contributing to and investing in local economic development
initiatives in communities in which our employees live, and by encouraging employee volunteerism.
This ties in with Sibanye-Stillwater’s duty as a responsible corporate citizen and helps address
poverty, inequality and unemployment around the SA operations. Refer to the report of the Social
and Ethics Committee in corporate governance
IN LINE WITH THE SUSTAINABLE DEVELOPMENT GOALS
The intended outcomes of our HR strategy are aligned, either directly or indirectly, with these United
Nations (UN) Sustainable Development Goals (SDGs):
PERFORMANCE
TARGETS
SA operations
• To exceed transformation targets: The
targets for 2018 were 40% historically
disadvantaged South Africans (HDSAs)
in management level positions and 10%
women in mining, specifically core mining
positions. These targets have been changed
as a result of the amendments to the Mining
Charter and will take effect from 2019.
US operations
• Opportunities to improve diversity are
sought with every new recruitment.
SA operations: Transformation
Historically disadvantaged South Africans in:
Management
Core and critical skills
Women in management
Women in mining
Women in core positions
2018
(%)
2017
(%)
Mining
Charter
targets 1
48
71
19
13
9
49
70
19
12
8
40
60
10
10
10
1 These targets will be replaced by the new targets that have been set in the amended
Mining Charter and will become effective from 2019.
Sibanye-Stillwater Integrated Report 2018 87
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
WORKPLACE MANAGEMENT
In South Africa, we began the year with
business transformation initiatives aimed at
clarifying roles and responsibilities within
a fit-for-purpose HR management system,
ensuring that our governance structures and
rules were aligned across the organisation,
maintaining or improving our service
levels so that we could reduce costs while
increasing productivity.
We reviewed our HR practices and
policies (overtime, acting and relieving,
call-out and standby) and invested in
an information management system
(contractor management, automation and
digitalisation of employee services, such
as leave and sick days, and harmonisation
of remuneration and benefits) that would
enable sustainable business continuity. This
system also facilitates the identification of
HR-related business risks.
At the SA operations, we embarked on
targeted recruitment for critical positions
and implemented a cadet scheme to
address the shortage of skilled employees
in our stoping and development crews. To
this end, and to play our part in addressing
the critical youth unemployment issue in
South Africa, we recruited 64 trainees,
aged 18 to 25, through the local
community forum at Beatrix so that they
could gain on-the-job experience – 29 have
been employed to work at the mine while
the rest have been included in our database
of suitable candidates.
At the same time, we began using an
automated recruitment system, which
has reduced the time and cost involved in
conventional evaluation of applications by
60%. The system will be integrated with
other electronic employee services for
efficient data processing and to include
communities in online learning platforms.
At the US operations, the human capital
planning and recruitment strategy for the
Blitz Project is a continuous initiative from
one year to the next. Initially, focus was
on the tunnel-boring machine. Manpower
requirements and related prospective budgets
for 2020 and 2021, in terms of anticipated
scheduled production, are in place.
ORGANISATIONAL AND
LEADERSHIP DEVELOPMENT
As leadership development is an integral
part of the architecture of any organisation,
we seek to create an executive talent pool
that is aware of business needs, given the
environment in which we operate.
In 2018, in order to ensure that we had
competent leaders, living the Group’s values
and ready to move to the next level, we
instituted talent management, psychometric
assessments, leadership development and a
dedicated on-boarding initiative.
TALENT MANAGEMENT
The success of talent management depends
on the integration of all HR functions. When
attracting employees to fill vacant positions,
we ensure that our internal talent pool is
reviewed and that all possible successors are
interviewed so that we achieve 80% self-
sufficiency with a blend of external hires.
In South Africa, in 2018, we addressed our
internal talent and succession pipeline by
institutionalising our career growth model
with quarterly talent reviews and career
days, which exposed more than 2,000
employees to the different disciplines within
Sibanye-Stillwater to enable a seamless
transition from one level to the next.
SA operations: Talent pool 1
The career growth model has four critical
pillars: performance, leadership ability,
qualification/technical competence/business
knowledge, and potential/culture fit. This
model embeds the philosophy that career
development is a series of interventions
aimed at developing a career through
skills training, lateral critical experiences,
moving to higher job responsibilities and
cross-functional positions within the same
organisation.
The 70-20-10 learning and development
model (below) is also applied as a valuable
general guideline to maximise the
effectiveness of learning and development
programmes through activities and inputs.
The performance management process is
linked to individual development, talent
management and leadership development.
It plays a major role in identifying
employees for the talent pool. An average
performance score, over a period of three
years, is considered for the selection
process. If this information is not available,
performance over a period of at least six
months is considered.
Within our mentoring and coaching
framework, individual career development
plans have been aligned with succession
planning.
Talent pool size
(A-D Band)
Successors
promoted
2018
2017 2016 2
1,787 1,282
691
70%
informal on-the-job experience based
on practice
131
105
108
1 Employees identified as potential leaders
for development
2 D Band employees only
20%
coaching, mentoring and development
through others
“Leadership development
is an integral part of
the architecture of any
organisation”
10%
formal learning intervention and
structured workshops
88
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION PSYCHOMETRIC ASSESSMENTS
Psychometric assessments are used in recruiting,
identifying talent and promoting effective HR
development and personal growth.
Psychometric assessment activities are designed to:
• Align the Group’s assessment practices with
relevant legislation
• Ensure that the Sibanye-Stillwater approach to
psychometric assessment is applied consistently
in other work-related streams, such as
performance optimisation, talent management
and recruitment at senior level
• Optimise human capital, employed on the basis
of their competence, matched against job-
related requirements and developed to meet
job requirements
• Establish and maintain progressive assessment
practices aligned with local best practice
• Regulate the psychometric assessment process
for Sibanye-Stillwater
• Ensure fair and equitable decisions regarding
employee selection, promotion, development
and organisational transformation
• Provide opportunities for employees to gain
personal insight and self-development through
effective and efficient assessment practices
LEADERSHIP COMPETENCY FRAMEWORK
COMMITMENT
ACCOUNTABILITY
RESPECT
ENABLING
SAFETY
RESULTS-ORIENTED
• Deciding and
initiating action
• Delivering results and
meeting expectations
PRINCIPLE-CENTRED
Adhering
to principles and values
FUTURE-FOCUSED
• Formulating strategies
and concepts
• Planning and organising
• Creating and
innovating
BUSINESS SENSE
• Entrepreneurial and
commercial thinking
• Delivering results
and meeting
expectations
• Governance and
following procedures
STAKEHOLDER
ENGAGEMENT
• Relating and
networking
• Persuading and
influencing
LEADER AGILITY
PEOPLE-CENTRIC
• Adapting and
responding to change
• Leading and
supervising
• Applying expertise
and technology
• Working with
people
• Coping with
pressure and
setbacks
EXECUTIVE
OPERATIONAL
MANAGER
MANAGER
SUPERVISOR
BASIC
OPERATOR
Sibanye-Stillwater psychometric assessments are aligned with the leadership
competency framework and values.
THE VALUE OF ASSESSMENTS: CANDIDATES BUSINESS NEEDS
Employee assessments
The new assessment framework was successfully implemented across the SA
operations in 2018. Most E band level and higher employees were assessed by an
independent service provider. Individual feedback is expected from the beginning of
2019. 87% of D band and below successors were assessed internally.
A total of 5,609 assessments were completed during 2018, including 200
graduates and bursars, as well as 63 learnership candidates, while 1,572 operators
were assessed.
The objective for 2019 is to have assessment results for all D level employees to
determine emerging themes, which will be aligned with training interventions.
Executive assessments
In 2019, the Executive Committee and top 40 leaders will undergo 360˚ assessments.
As leadership is a competitive advantage and enabler for delivery on business
goals and social imperatives, we aim to promote and improve leadership capability
and have developed a leadership competency framework based on the Sibanye-
Stillwater CARES values.
Feedback from these assessments will assist leadership in improving relationships,
accountability and performance.
“We aim to promote
and improve leadership
capability”
An employee at Bathopele mine in Rustenburg, South Africa
Sibanye-Stillwater Integrated Report 2018 89
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
EFFECTIVE PERFORMANCE
Sibanye-Stillwater invested significantly in developing a performance-driven
culture within the SA operations in 2018. We benchmarked our policies, practices,
processes and systems to understand the requirements and found:
• System and process: Our systems and processes were at least on par with
other high-performing companies. In many instances, our system enhancements
exceeded others.
• Engagement: We recognised the need for one-on-one engagement sessions
between managers and their team members to enable effective performance. The
sessions focus on recognition and celebration, role clarity and real-time feedback.
• Visible matrices: We track performance effectively so that senior managers are
able to focus on the needs of service departments and thus ensure the same
levels of visibility.
In 2018 we focused on the following key elements:
• Implementation of system enhancements to integrate performance and
development behaviours, including the introduction of management dashboards
to track performance discussions, and automation of performance improvement
and enhancement plans
• Transparency in the performance review process to build trust in the processes
• Refocusing the performance review to a performance conversation to start the
culture transformation journey
• Implementation of the HR development programme to enable the HR community
at the SA operations to better support effective performance in the operations
and services departments
Recruitment
Our new electronic recruitment model focuses
initially on internal candidates via the intranet before
any vacant posts are advertised externally. Filters,
in the form of five key questions, are also used
to streamline the process. Much paper work has
been eliminated by taking this process online. As
part of the digitalisation process, the HR function
is making much greater use of technology and is
working closely with the IT function to develop
systems to manage its various services. Accordingly,
the approach to training is being reviewed with
greater use of virtual learning, e-learning and
blended learning (a combination of e-learning and
conventional training: see training and development).
The digitalisation process is aligned with the
overall business transformation programme, aimed
at enhancing efficiencies and reducing costs. A
revised overtime policy has resulted in a R1 million
reduction in the amount paid out for overtime
work. Contracted services have been streamlined
in line with the rationalisation of employee benefit
services, resulting in a saving of R2 million.
Employees at our US PGM
operations in Montana, US
LEADERSHIP DEVELOPMENT
In South Africa, Sibanye-Stillwater aims to
strengthen leadership capability by implementing
tailor-made development programmes that are
aligned with business needs. We are aware of the
need for agile, value-based leadership to execute
our strategy.
In order to deliver world-class leadership
development programmes, Sibanye-Stillwater
partnered with an independent service provider
in 2018 and delivered the first executive
development programme for 40 future leaders,
which included coaching of the Executive
Committee. The programme included strategy
execution, crisis and change management,
mergers and acquisitions, and community
immersion, among others.
The women leadership development programme
launched in August 2017 focused on improving
gender diversity in 2018 by addressing personal
and career growth, financial management, and
employment of women in mining globally, in
South Africa and at community level.
ON-BOARDING
During phase 1 of the on-boarding process in
2018, we conducted a survey among all newly
appointed and promoted middle and senior
managers to determine the level of employee
engagement. We could thus determine the
balance between job resources and job demands,
burnout and organisational commitment. A task
team then designed and implemented an on-
boarding policy and process.
Phase 2 will begin in 2019 with the launch of the
programme, a welcome video and workshop for
HR managers. An on-boarding tracking tool will be
used as part of the engagement process to provide
system guidelines for employees, HR and managers
about activities that prepare employees for their
new roles. On-boarding surveys will continue as
part of the process.
At the US operations, all newly hired and re-hired
employees attend orientation, which includes an
introduction to the Group, a review of our CARES
values, discussion on policies and procedures, and
a presentation on the health and welfare benefits
package, as well as a well-rounded introduction to
the organisation as a whole.
90
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION TIME AND ATTENDANCE
A review of time and attendance measured compliance with legislated basic conditions of employment as well as health and safety
regulations, including certified fitness to work, so that employees would not suffer the consequences of exceeding the maximum 40 hours a
week at the SA operations.
At the US operations, all employees work a specific schedule, depending on the operational facility or support department to which they are
assigned. Scheduled work shifts comply with the requirements of the US Department of Labor and the Fair Labor Standards Act governing
the maximum number of working hours and overtime.
We have focused on continuous improvement in our HR system road map for the next three years. Our structured process reviews system
capabilities, and the quality of outputs and efficiencies, to support the business in remaining compliant and in touch with the fast-changing
technological landscape.
Our road map focuses on improving system controls and capability, particularly with regard to safety and people, in the following areas:
• Regulatory-related system blocking and control
– Statutory leave management (system framework and capability improvements completed in 2018/roll-out planned for 2019)
– Certificate of fitness management (maintained system capability improvements in 2018/new business planned for 2019)
– Annual training management (system framework and capability improvements completed in 2018/roll-out planned for 2019)
– Certification and qualification management (system framework and capability improvements drafted in 2018/completion of system
framework capability and roll-out planned for 2019)
– Short shift management (system framework and capability improvements completed in 2018/roll-out planned for 2019)
– Overtime management (system framework and capability improvements completed in 2018/roll-out planned for 2019)
– Work permit management (system framework and capability improvements and roll-out planned for 2019)
• HR core controls
– Absentee management (reviewed and improved efficient absentee management and long-term sick management processes and
controls in 2018)
– Disciplinary management (reviewed system framework and capability/improvements planned for 2019 within workflow system
environment)
– Talent management (reviewed system framework and capability/improvements planned for 2019 within workflow system environment)
– Training booking management (reviewed system framework and capability/improvements planned for 2019 within workflow system
environment)
– Manning board (developed organisational structure system within HR operating systems showing structure/key HR risk indicators
planned for completion and roll-out in 2019)
– HR planning (review system technology used for business HR planning in 2019)
– eJob architecture (developed job architecture framework in 2018/system integration and review of standards in 2019)
As part of the journey towards improvement in these areas, we have strategically reviewed the manner in which we manage the people
elements within our system environment.
Our key system drivers have included:
• Integration of diverse conditions as part of the portfolio and growth of our business to strategically review controls that could cater for
various conditions and variations in HR
• Versatility and efficiency by improving the use of systems and technology for quicker inputs and outputs through the workflow system
environment for effective and streamlined approvals
• Interaction and technology to advance our system environment for best practice and greater use of robotics and automation
• Communication and information to improve real-time data and statistical information
Sibanye-Stillwater Integrated Report 2018 91
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
Workforce by operation at 31 December
2018
2017
2016
Permanent
employees
1 Contractors
Total
Permanent
employees
1 Contractors
Total
Permanent
employees
1 Contractors
Total
SA operations
Beatrix
Driefontein
Kloof
Burnstone
Cooke
Gold
(excluding services)
Kroondal (100%)
Rustenburg 3
SA PGM 2
(excluding services)
Regional Services 3
SA other 4
7,329
10,576
9,776
114
486
28,281
5,673
13,023
18,696
2,251
1,720
929
8,258
1,072
11,648
1,160
10,936
66
260
180
746
3,487
31,768
2,617
8,290
2,354
15,377
7,084
10,969
9,581
237
717
28,588
5,715
13,194
925
8,009
1,495 12,464
1,487 11,068
298
542
535
1,259
4,747 33,335
2,849
8,564
2,049 15,243
7,884
10,941
9,858
241
3,788
32,712
6,021
14,891
1,671
9,555
1,648 12,589
1,319 11,177
336
577
1,624
5,412
6,598 39,310
4,378 10,399
3,114 18,005
4,971
23,667
18,909
4,898 23,807
20,912
7,492 28,404
1,239
806
3,490
2,526
2,262
1,867
1,349
3,611
1,827
3,694
3,054
2,731
1,018
4,072
190
2,921
SA operations – Total
50,948
10,503
61,451
51,626
12,821 64,447
58,644
15,887 74,531
US operations
Stillwater
East Boulder
Columbus
Metallurgical Complex
Regional services 5
Other 6
US operations – Total
Corporate office 7
Group – Total
962
411
186
67
2
1,628
55
280
45
1,242
456
54
5
0
240
72
2
384
2,012
0
55
863
409
179
54
8
1,513
55
333
1,196
54
64
6
0
463
243
60
8
457
1,970
-
55
52,631
10,887
63,518
53,194
13,278
66,472
58,644
15,887
74,531
1 Contractors excludes “free” contractors who receive a fee for service irrespective of the number of contractor employees on site (not compensated
on a fee-per-head basis but a fee for the service or work performed)
2 PGM operations under management: In 2016, Kroondal is included from April to December 2016 and Rustenburg operations from November to
December 2016. In 2017, these operations are included for the full year.
3 Regional services includes executive management of the SA operations and employees providing a service to the SA operations and to the gold
operations not reflected in other. The number for the Rustenburg employees above includes 1,029 employees who provide regional services to the
SA PGM operations
4 Other includes Protection Services, Shared Services, Sibanye-Stillwater Academy, Health Services and Property (gold and SA PGM operations)
5 Regional services in the US includes executive management located in Columbus and Montana offices
6 Other represents two employees at Marathon, Canada (no contractors at 31 December 2018). Altar employees are included with Aldebaran from
2018 (non-managed).
7 Corporate office includes executive management since September 2017
Workforce composition (2018)
Permanent employees
Contractors
82
82
%
100
81
18
18
%
19
SA operations
US operations1
Corporate office
Group
50,948
1,628
55
52,631
SA operations
US operations1
Corporate office
Group
18
19
0
18
92
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
Workforce by age
SA operations
<30 years
30-50 years
>50 years
US operations 1
<30 years
30-50 years
>50 years
2018
2017
2016
Permanent
employees Contractors
Total
%
Permanent
employees Contractors
Total %
Permanent
employees Contractors
Total %
3,402
37,230
10,316
194
904
530
2,950
6,352
6,492 43,722
1,061 11,377
194
904
530
10
71
19
12
55
33
4,034
37,275
10,317
157
848
508
3,694
7,728
7,738 45,013
1,389 11,706
12
70
18
10
56
34
5,913
41,636
11,095
4,560
10,473
9,536
51,172
1,791
12,886
14
69
17
1 Ages of contractors at US operations not available
ABSENTEEISM
SA operations: Absenteeism (%)
25
20
15
10
5
0
211
20
15
15.7
151
15
15.1
68
2018
2017
2016
Gold
PGM
1 The increase is a result of the AMCU wage-
related industrial action
For more about absenteeism, refer to Ensuring
safe production, and Occupational health and
well-being.
US operations’ employees are allotted a specific
number of vacation and sick/personal days per
year. When these discretionary days off of work
have US operations’ employees are allotted a
specific number of vacation and sick/personal days
per year. When these discretionary days off of
work have been exhausted, should the employee
miss work, employment is terminated.
EMPLOYEE TURNOVER
The annual turnover for management level
employees in the SA operations in 2018 was
14%, including 9% HDSAs and 4% women
in management. The total turnover in the SA
operations was 5% (6% at the gold operations
and 3% at the PGM operations).
Annualised attrition in the US operations in
2018 was 8.7%. The attrition rate among miners
was 4.8%.
No incidents of discrimination were reported
during 2018.
GENDER DIVERSITY
We aim to establish a working environment,
and instil a culture, that supports and
proactively attracts women at all levels, and
which accelerates gender equity through
employee development and improved
communication, promoting awareness and
understanding of gender diversity and equity,
and removing gender-related barriers to make
the working environment more conducive for
women. Every effort has been made to ensure
that our HR policies are gender-neutral.
Women representation in our workforce
improved to 13% in 2018 with 9% of core
mining roles held by women. A particular
focus of succession planning is to increase
female representation in middle management
and in senior/executive management.
Sexual harassment is not tolerated at all as it
violates our values and disrupts the workplace.
As awareness and understanding of sexual
harassment play a pivotal role in preventing
sexual harassment in the workplace, regular
awareness campaigns are conducted. Sexual
harassment is also addressed in employee
“return from leave” refresher induction
training. Our sexual harassment policy governs
procedures to be followed in dealing with
sexual harassment. A sexual misconduct unit
of Protection Services handles all reported
sexual harassment cases, with information
from anonymous tip-offs or HR managers, and
counselling is provided to affected employees.
In 2018, two cases of sexual harassment were
reported at our SA PGM operations and one at
our SA gold operations.
“Every effort has
been made to
ensure that our
HR policies are
gender-neutral”
Sibanye-Stillwater Integrated Report 2018 93
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
Women employed (%)
2018
SA
operations
Gold
12
PGM
15
Group
Total
13
US
operations
PGM
9
Group
Total
13
2017
SA
operations
US
operations
2016
SA operations
Gold
10
PGM
14
PGM
8
Total
11
Gold
7.2
PGM
13.6
Women in core mining positions (2018)
Group
Total
SA operations
US operations
Gold
PGM
PGM
53 (3.3%)
%
13
9
47
13
Gender diversity of permanent employees (2018)
SA operations 1
US operations 1,2
Corporate office
Group
1 Includes services and other
4,656 (9%)
2,543 (9%)
2,058 (12%)
Male
44,197
1,487
29
45,713
%
87
92
53
87
Female
6,751
139
26
6,916
2 Excludes two employees working outside of the US PGM operations at the Marathon (Canada) project
TRAINING AND DEVELOPMENT
Human resources development (2018)
In 2018, our SA operations invested
R559 million (2017: R532 million) in HR
development, representing 10.1 million hours
of training, equivalent to 69 training hours per
employee (2017: 79.6). The total number of
employees and community members attending
one or more of our training programmes increased
from 104,647 in 2017 to 146,978 in 2018. The
main reason for the increase was significantly
higher demand for core skills training to equip
employees with skills needed to facilitate
operational changes and workforce redeployment.
In our US operations, US$2.6 million
(2017: US$1.3 million) or R34.4 million
(2017: R17.3 million) was spent on training.
A total of 115 salaried employees participated
in leadership development training while nine
participated in a continuing education programme
(with 75% of the costs for tuition and books
reimbursed by the organisation).
All newly hired and rehired employees attend
new hire orientation prior to beginning work.
The orientation includes an introduction to the
organisation, review of our CARES values, discussion
of policies and procedures, and a presentation on
the health and welfare benefits package, as well as
presentations by other departments.
Total training
hours (number
of learners
x average
training days
per learner)
Number of
learners
161
92
566
202
240
465
29
71
143
89
324,576
185,472
203,760
90,900
483,840
921,312
58,464
3,408
13,728
3,560
Expenditure (R)
56,154,890
12,750,659
66,891,011
15,496,045
42,510,421
85,329,045
7,377,869
3,705,700
7,027,011
5,489,991
197,088,516
119,394
7,641,216
4,801,855
1,089,850
144
435
9,216
3,480
2,427,052
12,324
98,588
Internships
Bursaries
Adult education and training
Employees
Community
Learnerships
Engineering
Mining
Learner official (A-stream)
Portable skills training
Employees
Community
Leadership development
Core skills training
Cadet training
Coaches/Mentorship training
Employee indebtedness
(CARE for iMali)
Support and research
Other
Total
94
Sibanye-Stillwater Integrated Report 2018
Community maths and science
0
14,201,451
36,882,556
0
0
0
0
12,631
101,048
559,223,922
146,978
10,142,568
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA operations: Human resource development (R million)
2018
2017
SLP financial
provision
Actual training
expenditure
SLP financial
provision
Actual training
expenditure
113
5
13
138
113
45
96
523
77
1
1
135
143
69
133
559
74
2
20
144
104
_
131
473
73
–
23
132
111
59
134
532
Beatrix
Burnstone
Cooke
Driefontein
Kloof
Kroondal
Rustenburg
Total
ADULT EDUCATION AND TRAINING
Sibanye-Stillwater offers adult education and training for employees and
other beneficiaries who are functionally illiterate. The programme, with the same
curriculum throughout the SA operations, provides people with the basic foundation
for life-long learning and equips them with basic competencies, including the ability to
read, write, communicate effectively, and solve problems in their homes, communities
and workplaces.
In 2018, 54% (2017: 43%) of employees in the SA operations had qualifications
equivalent to adult education and training level 3 and higher. The literacy level at the
gold operations in 2018 was 71% (2017: 62%) and 37% (2017: 24%) at the
SA PGM operations.
In 2018, seven employees who had attended adult education and training moved into a
mining learnership programme (2017: 11).
SA operations: Adult education and training
MODERN APPROACH TO
LEARNING AND DEVELOPMENT
Key to achieving zero harm (see Ensuring
safe production, and Occupational health
and well-being ) and safe, sustainable
production are competent and skilled
employees, supporting the business case for
training as an imperative.
During the last quarter of 2018, a
training sub-committee was established
to develop an enhanced training strategy
and framework, and to monitor its
implementation. It focuses primarily on
the implementation of leading practice
in learning delivery and management
technology to improve training
competency and outcomes across the
entire organisation. It will also develop
partnerships and collaboration with industry
to achieve effective skills and knowledge
transfer as a long-term intervention.
A specialist technology-based learning
service provider, assigned the position of
“knowledge manager”, will manage this
process in 2019. Among the learnings
options being considered are:
• Integrated learner management systems
compatible with existing HR financial
management systems
• Automated learner recruitment and
training administration systems
Year
2013
2014
2015
2016
2017
2018
Total
Number of
employees trained
Number of
community
members trained
1,220
1,325
1,276
1,392
719
566
6,498
434
984
1,325
675
238
202
3,858
SPORTS PROMOTION
As part of our holistic wellness strategy,
our housing department also promotes
sports among employees. Sibanye-
Stillwater supports around 13 sporting
codes, including body building, soccer,
netball, cultural dance, social games and
athletics, among others.
In 2018, one of our employees,
Bongani Zwane, completed the gruelling
Comrades Marathon in second place.
Total
1,654
2,309
2,601
2,067
957
768
10,356
• Web-based learning solutions
• Cloud- and server-based
technological platforms
• Cell-phone learning applications
(M-Learning Tube)
• Free WiFi learning areas
• Intranet learning work areas
• Mobile electronic devices and
tablet applications
• Virtual-reality learning and
assessment tools
• Situational and incident simulations
• Interactive learning and
knowledge gamification
• Access to online skills programmes
and qualifications
The approach will be a basic but robust
generic learner management system
during 2019 with learning solutions aimed
at enhancing the induction and review
training of employees as a first phase,
followed by modernised learning solutions
for the critical front-line safe production
leadership designations.
Sibanye-Stillwater Integrated Report 2018 95
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
LABOUR RELATIONS
In 2018, around 95% (2017: 93%) of our total
permanent workforce in the SA operations was
represented by four recognised unions: AMCU,
NUM, Solidarity and UASA.
During the year, changes were made to the
disciplinary code to accommodate the safety
cardinal rules. Training and awareness sessions
were held for the implementation of Protection
of Personal Information Act (POPI), and all
documents and processes are being reviewed to
ensure compliance.
In the US operations, 1,237 (2017: 1,163)
employees are members of the USW. At the
Stillwater mine and Columbus Metallurgical
Complex, 917 (2017: 845) employees had union
representation and 320 (2017: 318) at the East
Boulder mine.
Employees in a control room at our
SA gold operations
96
Sibanye-Stillwater Integrated Report 2018
SA OPERATIONS: LABOUR RELATIONS AND WAGE NEGOTIATIONS
On 14 November 2018, Sibanye-Stillwater signed a three-year wage agreement
with three unions (NUM, Solidarity and UASA) at its SA gold operations for the
period 1 July 2018 to 30 June 2021.
The agreement allows for increases in the basic wages of Category 4-8 surface and
underground employees of R700 a month in the first and second years, and R825 a
month in the third year.
Miners, artisans and officials will receive increases of 5.5% in year one and 5.5%
or a Consumer Price Index (CPI) increase, whichever is the greater, in years two and
three of the agreement.
In addition to the basic wage, the parties agreed to a monthly increase of R50 in the
current living-out allowance to a maximum of R2,150 per month from 1 September
2018. We will increase the living-out allowance by R75 to a maximum of R2,225
per month on 1 September 2019 and by R100 to a maximum of R2,325 per month
in the year that follows.
We also agreed to increase, incrementally, the current minimum medical incapacity
benefit of R55,000 to R60,000 over the three-year period by increasing the benefit
by R1,500 on 1 July 2018, R1,500 on 1 July 2019 and R2,000 on 1 July 2020.
In addition, the following additional non-wage issues were agreed:
• An increase in the guaranteed minimum severance payment to R50,000 over the
three-year period
• Female employees will be entitled to four months paid maternity leave with an
option to spread the leave over a period of six months
Refer to page 114 for details on our agreement to introduce a cost-effective
uniform approach to healthcare across all our SA gold operations
Strike
On 19 November 2018, AMCU gave notice that its members would embark on
protected strike action at our SA gold operations from the evening shift on 21
November 2018. Despite ongoing attempts by Sibanye-Stillwater to reach a fair and
reasonable outcome during the strike, AMCU maintained its position of unaffordable
demands. Various acts of violence and intimidation, including the deaths of
employees and serious injury to several others, have been recorded. By the end of the
reporting period, the strike had not ceased.
Reported acts of intimidation and violence were investigated and implicated
employees were disciplined accordingly in line with our policy. Violent actions were
in direct contravention of the interdict granted by the Labour Court to Sibanye-
Stillwater on 22 November 2018.
In order to respect the rights of all workers, and prevent further violence,
management engaged with union leadership on a possible Peace Pact. However,
not all parties signed it.
SA PGM operations
Currently, the wage agreement in place at Kroondal comes to an end in June 2020
whereas the wage agreement at the Rustenburg operations ends in June 2019.
US PGM operations
Wage contracts at the Columbus Metallurgical Complex and the Stillwater mine are
due to be renewed on 31 May 2019. The next wage negotiations at East Boulder will
be in December 2021.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Union representation at SA operations (2018)
Membership
Representation (%)
Union representation at US operations in 2018 1 (%)
USW
Non-unionised
1 Marathon (Canada) does not have unionised employees
SA operations: Membership by union
Gold
28,535
98
PGM
17,397
93
Services and
other
2,645
88
Total
48,587
95
Stillwater
(including
Blitz)
Columbus
Metallurgical
Complex
84.2
15.8
76.3
23.7
Administrative
support staff
0
100
East Boulder
77.9
22.1
2018
2017
2016
Total
Gold
PGM
Services
and
other
Total
Gold
PGM
Services
and
other
Total
Gold
PGM
Services
and
other
25,830 13,469 11,955
406 26,687 13,651 12,335
701 29,988 15,343 13,720
925
18,192 13,236
3,158
1,798 17,133 11,992
2,859
2,282 18,816 13,318
2,776
2,722
3,236
1,113
1,846
1,319
2,371
717
697
438
1,299
277
164
375
3,183
1,242
853
564
1,937
393
3,676
445
233
1,257
965
594
2,271
394
3,381
1,528
1,333
520
4,907
2,492
1,572
440
269
664
50,948 29,232 18,696
3,020 51,626 28,588 18,909
4,129 58,644 32,712 20,733
5,020
51
36
6
2
5
46
45
4
3
2
64
17
10
2
7
100
100
100
13
60
9
5
13
100
52
33
6
2
7
48
42
3
2
5
65
15
10
2
8
16
55
10
6
13
51
32
6
2
9
47
41
3
2
7
66
13
11
2
8
100
100
100
100
100
100
100
18
54
9
6
13
100
Membership
AMCU
NUM
UASA
Solidarity
Non-unionised
Total
Membership
representation (%)
AMCU
NUM
UASA
Solidarity
Non-unionised
Total
SALARIES AND WAGES
On 26 November 2018, President Cyril Ramaphosa signed into
law the National Minimum Wage Bill, which sets South Africa’s
first national minimum wage at R20 an hour or R3,500 per month
(depending on the number of hours worked). As at 28 July 2018,
the total monthly cash remuneration of an entry-level underground
employee in the gold mining sector was R11,114 – see
www.thisisgold.co.za.
In 2018, employees working at the SA operations, on average, earned
(including overtime, bonuses, insurance, medical and other benefits)
a gross cost to company wage ranging from R16,080 to R21,703
per month for a Category 4 employee and R21,316 to R25,620 per
month for a Category 8 employee. The total wage bill in the SA
operations in 2018 was R13.1 billion (2017: R13.7 billion).
In the US operations, the total wage and salary bill in 2018 was
US$163.8 million (R2.6 billion). It was US$114.7 million (R1.5 billion)
in eight months of 2017.
The minimum wage in Montana, US, in 2019 will be US$8.50
per hour. The union pay scale for entry level custodians begins
at US$23.59 per hour. The entry level wage for non-unionised
employees is US$18.50 per hour for an administrative assistant.
Sibanye-Stillwater Integrated Report 2018 97
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
CARING FOR EMPLOYEES AND THEIR DEPENDANTS
Through the Matshediso programme, as part of its duty of care to employees, Sibanye-Stillwater provides financial assistance to the families
and dependants of employees who are severely disabled or fatally injured in mine accidents.
See Ensuring safe production for benefits structure
Purpose and objectives
Matshediso aims to improve the lives of dependants of employees who have died or suffered a severe permanent disability in a mine
accident by:
• Ensuring that dependants have a good basic education that enables them to attend a tertiary institution
• Providing some closure for families
• Seeking to redress legacy issues by reducing historic imbalances in migrant labour
• Creating a skills pool for bursars, learnerships and job opportunities
• Helping to reduce poverty and unemployment
Sibanye-Stillwater supported 374 dependants in 2018 at a total cost of R1.5 million (2017: R0.8 million). In addition, at year-end, the
families of South African employees received vouchers to the value of R1,500 per family while families living in Mozambique, where the cost
of living is much higher, received R2,000 each.
Feedback from all beneficiaries of the programme, as well as school principals and teachers, is positive. Of the 40 matriculants supported by
Matshediso in 2018, 15 passed their final examinations.
2016
R2,500
NA
NA
NA
NA
R685,600
Benefit
Host schools
Boarding schools
Uniform, stationery, text
books and transport
2018
R7,000 (primary)
R15,000 (secondary)
R18,000
R3,000
Extra classes at host schools
R2,160 per subject per year
2017
R5,000
R10,000
R2,000
R500
Study opportunities
Bursary/internship awarded automatically for study of choice at
recognised tertiary institution (certain minimum requirements)
Bursary opportunities in core
mining disciplines, including
finance
Christmas voucher or hamper
R1,500 per family
Total amount paid
to beneficiaries
R1,488,154
NA
R761,100
Caring for employees
In addition to the Matshediso programme, Sibanye-Stillwater also undertakes home adaptation and maintenance projects to provide the
families of severely disabled or fatally injured employees with functional housing.
For paraplegics and quadriplegics (spinal cord injuries), home adaptations include:
• Houses renovated or built (56m2 with an open-plan kitchen/lounge, two bedrooms and a bathroom)
• Electricity and water connected (if municipal infrastructure is not available, two water tanks are installed)
• Doorways are widened, and ramps and pathways are installed
• Bathrooms are made wheelchair-friendly and suitable toilets are fitted
In 2018, one employee, in rehabilitation, received an adapted home.
For families of deceased employees, either a new house is built (as above) or home maintenance is undertaken, which includes:
• Municipal electricity and water connections or two water tanks, as needed, and any leaks are fixed
• Repairs and maintenance (painting of interior and exterior walls, tiling of floors and installation of new doors and windows)
Sibanye-Stillwater is currently renovating or building homes for 14 widows and their families.
98
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CARE FOR iMALI
In the SA operations, our financial literacy
programme, CARE for iMali, continues to make a
difference in employees’ lives. Since the launch of
the programme at the gold operations in 2014,
there has been a reduction of 54% in the number
of garnishee orders (from 4,023 to 1,847) and an
average percentage increase in take-home (net)
pay of 30% (from R7,537 to R10,839). CARE
for iMali has also been implemented at the PGM
operations in South Africa where 4,500 employees
have enrolled in the programme and garnishee
deductions have been reduced by 11% since
the launch of the programme in 2017. The total
average percentage increase in take-home pay
at these PGM operations is 6% (from R13,038
to R13,885). See the CARE for iMali fact sheet at
www.sibanyestillwater.com
EMPLOYEE SHARE OWNERSHIP SCHEME
In the SA operations, 21,178 (2017: 22,269)
employees participated in our employee share
ownership scheme, Thusano Trust, established in
2010 when employees of Gold Fields acquired
13,524,365 Gold Fields shares, in terms of a
collective agreement between NUM, UASA,
Solidarity and GFI Mining South Africa (a wholly
owned subsidiary of Gold Fields). The shares were
allocated to employees in Paterson employment
bands A, B and C, according to their years of
service. With the unbundling of Gold Fields and
the creation of Sibanye Gold in 2013, Sibanye
employees were allocated an equal number of
shares in each company.
With the acquisition of Rustenburg operations
in 2016, Sibanye-Stillwater concluded a 26%
broad-based BEE transaction through a subsidiary.
In terms of this transaction, the Rustenburg Mine
Employees Trust now has a shareholding of 30.4%
in the Rustenburg entity, the Rustenburg Mine
Community Development Trust 24.8%, Bakgatla-
ba-Kgafela Investment Holdings 24.8% and
Siyanda Resources 20%.
At the US operations, all employees are eligible to
earn supplemental wages via one of four bonus
programmes: miners’ incentive, the employee
incentive plan for unionised employees, the salary
incentive plan for non-unionised salary employees
and the short-term incentive plan for management.
All bonus programmes require a scorecard
of metrics upon which the bonus is based.
Scorecards include desired measurable targets,
by department, which are reviewed and adjusted
as needed by the respective vice-president. In
addition, all salaried employees are subject to the
annual performance management programme,
which also requires supervisors to set individual
annual goals, including role performance metrics
by which an employee’s performance is evaluated.
The role performance metric scorecard is the basis
for a performance or merit increase in base salary
in the following calendar year. Role performance
metric categories include safety, production, work
quality, business improvement, people recognition
and leadership qualities.
TRANSFORMATION IN THE
SA OPERATIONS
In line with our commitment to broad-based
black economic empowerment (BBBEE) in the
SA operations, and in anticipation of the revised
Mining Charter targets, we aimed to ensure that
80% of new recruits were from HDSA backgrounds
in 2018. At the same time, we renewed our focus
on integrating our talent management approach,
which included targeted recruitment and
succession planning and management, specifically
in under-represented areas.
We also conducted an audit of compliance with
BBBEE and employment equity legislation, and
aligned our recruitment strategy accordingly in terms
of life-of-mine evolution and pipeline planning.
Employment equity improved to 48% from more
than 45% in 2017 while employment of women
remained at 13%.
We are addressing gender equity with the
establishment of the SA operations working group,
which has been tasked with developing strategies
and policies to create an enabling environment and
awareness of gender diversity.
Our workforce in the SA operations currently
comprises 23% migrants who have not been
recruited from communities near the mines –
16% at our gold operations and 7% at the PGM
operations. Approximately 77% of our workforce
resides locally, including some migrant employees.
“In the SA
operations, our
financial literacy
programme,
CARE for iMali,
continues to make
a difference in
employees’ lives”
Community members from
labour-sending Mozambique
attending a CARE for iMali
workshop
SA operations: Employment equity by category as at 31 December 2018 1
Category
Board
Executive/senior management
Middle management (E Band)
Junior management (D Band)
Core and critical skills
Historically
disadvantaged
South Africans
Women
Number
% Number
5
18
32
378
31,286
45
36
40
49
71
2
6
10
158
4,601
%
18
12
13
21
10
1 All employment equity numbers include white females
Sibanye-Stillwater Integrated Report 2018 99
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SUPERIOR VALUE FOR THE WORKFORCE CONTINUED
SA operations: Recruitment by category
Gold
Women
in mining
5
1
359
365
Total
38
2
1,840
1,880
2018
% Total
13
28
50
20
19
2
678
708
PGM
Women
in mining
1
0
117
118
%
4
0
17
17
Management 2
Senior
management 3
Core and
critical skills
Total
1 Moratorium on recruitment at SA PGM operations
2 D and E lower positions
3 E upper positions and above
SA operations: Origin of employees (2018)
Province
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
North West
Northern Cape
Western Cape
Non-South African
Total
Gold
8,348
3,125
3,759
2,862
801
660
746
54
18
7,908
28,281
SA operations: Non-South African recruitment (2018)
Country
Botswana
DRC
Ghana
Lesotho
Mozambique
Nigeria
Peru
Swaziland
United Kingdom
Zambia
Zimbabwe
Gold
262
1
0
3,504
3,351
0
0
783
0
0
7
2017
Gold
Women
in mining
PGM
Women
in mining
% Total
Total
109
14
18
17
38
–
–
7
–
65
128
1,924
2,008
327
345
17
17
518
710
PGM
4,243
770
938
274
956
413
7,330
184
27
3,561
18,696
Services
716
537
1,367
326
194
70
328
10
10
413
3,971
PGM
Services
7
1
0
1,062
2,419
1
0
49
1
3
18
19
2
1
217
119
0
1
52
1
0
2
2016 1
Gold
Women
in mining
7
Total
88
8
3,687
4,017
538
545
%
18
–
13
18
%
8
–
15
14
Total
13,307
4,432
6,164
3,462
1,951
1,143
8,404
248
55
11,882
50,948
Total
288
3
1
4,783
5,889
1
1
884
2
3
27
%
26
9
12
7
4
2
16
0
0
23
100
%
2
0
0
40
50
0
0
7
0
0
0
Total non-South African
7,908
3,561
415
11,882
100
100
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
2016
PGM 1
–
–
–
2018
561
457
167
165
133
143
Gold
4,107
2,877
72
2017
540
420
148
155
121
121
SA operations: Local community recruitment
Appointments
Local recruits
%
1 Recruitment moratorium
2018
PGM
659
650
98.6
Gold
1,931
1,726
89.4
2017
PGM
502
401
80
Gold
2,239
936
42
US PGM operations: Employee distribution by county (Montana)
Stillwater
Yellowstone
Sweet Grass
Park
Carbon
Other locations 1
1 Excludes two employees at Marathon (Canada)
FUTURE FOCUS
In addition to beginning the process of integrating
Lonmin employees into Sibanye-Stillwater,
following completion of the proposed acquisition.
SA operations
• Finalising and rolling out our employee
value proposition
• Increasing gender diversity and equity
• Creating a compelling employment relationship
• Integrating the strategic talent and workforce
management plan
• Establishing strategic and effective partnerships
(collaboration) with employees to find new
ways of working
• Continuing digitalisation of HR information
systems
• Optimising and repositioning loss-making
gold operations, which may require formal
restructuring that could result in termination
of employment
• An effective, efficient and agile HR strategy and
operating model
• Establishing a high-performance culture
US PGM operations
• Diligent attention to manpower and staffing
to support the Blitz project and other
development projects
• Enhancing on-boarding programmes to
include new technology that will alleviate the
administrative burden of paper-based forms
• Expanding and formalising training
programmes and curricula for job-specific,
leadership and supervisor training as well as
succession planning
• Improving efforts to be transparent in what we
do and how we do it with specific regard to our
unionised employee base
• Concentrating efforts on refining performance
management and role clarity initiatives to
ensure impact and enhancement of business
objectives, retention and succession planning
• Further aligning incentives and the pay-for-
performance culture by improving efforts
to compensate employees in terms of
performance, key performance indicators and
the value they bring to the organisation
• Continuing to monitor cost-containment
initiatives to mitigate a rising healthcare trend
while providing quality, co-ordinated care to
employees and their families
• Monitoring employee engagement and feedback
via a regional workforce survey in 2019
Sibanye-Stillwater Integrated Report 2018 101
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “A critical pillar
supporting
the delivery of
Sibanye-Stillwater’s
business strategy
and vision to
create superior
value for all our
stakeholders is the
safety, health and
well-being of our
employees”
ENSURING SAFE PRODUCTION
The initial outcomes of our safety interventions
have been positive with a significant improvement
in the safety performance across the Group in H2
2018. The Group operations have been fatality-
free since mid-August 2018. We recorded a total
of seven million fatality-free shifts by 1 March
2019 with the SA operations also achieving
seven million fatality-free shifts on 6 March 2017.
Group combined injury rates were essentially flat
year-on-year with a slight deterioration in injury
rates at the SA gold operations and the US PGM
operations, offset by a significant improvement in
injury rates at the SA PGM operations where the
serious injury frequency rate (SIFR) and lost day
injury frequency rate (LDIFR) improved by 15% and
0.2%, respectively.
With regard to the implementation of fit-for-
purpose systems, while we have operated in
accordance with recognised health and safety
standards, we are preparing for formal certification
in terms of ISO 45001. We have also declared
our strategic intent to become a member of the
International Council on Mining and Metals (ICMM).
This will entail commitment to ICMM’s 10 principles,
which promote responsible mining to ensure that
the industry is safe, fair and sustainable globally.
In addition to performance monitoring and
ensuring compliance with the relevant legislation
in each jurisdiction, and inspections by relevant
government departments and agencies, safety
and health performance reports are submitted to
executive management with ultimate oversight by
the Safety and Health Committee and the Board.
Refer to the Safety and Health Committee’s report
in Corporate governance on page 166.
The safety and health management system used at
our US PGM operations is known as GET (Guide,
Educate and Train) Safe. In terms of this approach,
site leadership and safety professionals conduct
monthly meetings to focus on safety culture and
monitor progress. This includes routine monitoring
of site-specific and region-wide action plans aimed
at improving safety performance as well as a
series of workshops with site leadership to identify
strategies for sustainable safety performance. Key
focus areas include senior committee oversight,
leadership development, incident reporting and
investigation, and collaboration in best practices
within the US.
APPROACH
Our resolve to align all stakeholders on our journey
towards achieving zero harm throughout the Group
– in SA and in the US remains firm – we focus on
creating an enabling environment, using fit-for-
purpose systems, in which empowered people
can work safely throughout the organisation.
A critical pillar supporting the delivery of Sibanye-
Stillwater’s business strategy and vision to create
superior value for all our stakeholders is the safety,
health and well-being of our employees (the most
important of our stakeholders). Our approach
is rooted in our CARES values – commitment,
accountability, respect, enabling and safety – and
our purpose to improve lives.
Following an unusual spate of fatal incidents in the
SA gold operations in the first half of 2018, we
intensified our efforts on safe production across
the Group (see the journey towards zero harm
opposite). In addition to short-term measures to
re-energise the focus on safety across the Group
(within this section), we convened a series of
multi-stakeholder safety summits during the year,
which resulted in an agreement between Sibanye-
Stillwater, organised labour and the Department of
Mineral Resources, on a health and safety compact
for the SA operations, signed on 29 June 2018 (see
www.sibanye-stillwater.com). All three stakeholders
have formally committed to working together, in
this instance, to make workplaces safer, protect
jobs and collaborate in all matters pertaining to
health, safety and well-being.
We continue to implement a holistic, values-driven
approach to safety and health management as we
strive for zero harm and ultimately to create shared
value. This embedding of our values, underpinning
our corporate culture, driving decision-making
throughout the organisation, is led by the CEO and
senior leadership. This is essential to building trust
and enabling safe production.
Our cultural transformation process is aimed
at inculcating values-based decision-making
throughput the organisation, and will be governed
by external and internal performance monitoring
measures including:
• Legislation
• Statutory bodies
• Formal joint management-worker health and
safety committees
• Internal and external audits of safety and
statistics reported
102
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION THE JOURNEY TOWARDS ZERO HARM
Our all-inclusive process to make workplaces safer determines the strategic thrusts and specific actions necessary to reduce employees’
exposure to risk.
For us, in an enabled environment, risk exposure is reduced by consistent, constant attention to maintaining a safe workplace with the
required equipment, tools and material that empower every person to deliver sustainable, safe production.
Empowered people, in our context, refers to the required number of trained people who apply the relevant standards and procedures, and
execute the work safely. To enable this, we make fit-for-purpose systems available to our people. We subscribe to relevant international best
practice principles and integrated systems with a view to ISO 45001 certification in the longer term.
Empowered people are also healthy and well. To this end, we also have systems and procedures that address occupational health, in
particular, and well-being.
As part of our journey to zero harm, a Virtual Centre of Excellence in Innovative Mining Safe Production has also been created so that 19
tertiary institutions worldwide can share their specialist competencies, including but not limited to mining-related safety and health, human
factors, risk management, training modernisation, mining-related seismicity and sustainability concepts.
Furthermore, the Global Safe Production Advisory Panel, composed of a group of leading academics, was formed in 2018 with a mandate to
provide international insight, best practice and expertise towards continuous advancement of safe mining.
Global Safe Production Advisory Panel
The aims of the panel are to:
• Review and validate Sibanye-Stillwater’s safe production processes and procedures
• Provide forward-looking advice to the Board and management in their view through their university’s proprietary work in emerging
safe production issues
• Contribute to the organisation’s strategic safe production, and health, safety and wellness direction and goals
• Contribute their expertise, insight, ideas and experiences in helping shape strategy for the Sibanye-Stillwater Centre of
Excellence with focus on innovative mining and safe production to establish a safety resource website and oversee other related
company initiatives
The panel, which will meet at least twice a year, comprises:
• Dr Kobus de Jager (Chairman of the panel and Senior Vice President at Sibanye-Stillwater)
• Prof Priscilla Nelson (Department Head: Mining Engineering, Colorado School of Mines, US)
• Prof Neville Plint (Director: Sustainable Minerals Institute, University of Queensland, Australia)
• Prof Ian Jandrell (Dean: Faculty of Engineering and Built Environment, University of the Witwatersrand, South Africa)
• Vic Pakalnis (President and CEO: MIRARCO Mining Innovation, Laurentian University, Canada)
• Prof Jürgen Kretschmann (President: TH Georg Agricola University of Applied Sciences, Germany)
As at all of our operations, a shift at the K6 shaft in our SA PGM operations starts with an underground safety briefing
Sibanye-Stillwater Integrated Report 2018 103
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION ENSURING SAFE PRODUCTION CONTINUED
ZERO HARM STRATEGIC FRAMEWORK
OUR VALUES
ENABLED ENVIRONMENT
Reducing risk exposure by maintaining
a safe working environment with
equipment, tools and material that
enable sustainably safe production
• Equipment, layouts and
environmental conditions
conducive to safe, productive
mining
• Safe technology
EMPOWERED PEOPLE
Ensuring the required number of trained
people to apply relevant standards and
procedures to work safely
FIT-FOR-PURPOSE SYSTEMS
Subscribing to international best practice
principles and integrated systems with a
view to certification in the longer term
Organisational transformation:
• Leadership
• Values and culture
• Training
• Employees’ right to withdraw
• Planned ISO 45001
certification by 2020
• Minerals Council South Africa
initiatives
• Joining the ICMM and
subscribing to their principles
by FY2019
• Global Safe Production
Advisory Panel
“Engaged leadership at all levels
of the organisation drives a values-
driven culture by living these values
and making values-based decisions”
P
I
H
S
R
E
D
A
E
L
D
E
G
A
G
N
E
Commitment
Accountability
Respect
Enabling
Safety
OUR VALUES
Our Zero Harm Strategic Framework has
been developed in collaboration with
organised labour and the Department of
Mineral Resources in South Africa through
a series of multi-stakeholder safety summits
convened during 2018.
The foundation of our model is the continued
emphasis on our CARES values as the basis
for decision making. Engaged leadership at
all levels of the organisation drives a values-
driven culture by living these values and
making values-based decisions.
104
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
“Our safety
performance was
markedly different
from the first to
the second half
of 2018”
PERFORMANCE
Our safety performance at our SA operations
was markedly different from the first to the
second half of 2018. The first six months of the
year were scarred by an increase in fatalities.
Regrettably, in 2018 we lost 24 (2017: 11) lives
at the SA operations – 21 fatalities (2017: 9) at
our SA gold operations and three (2017: 2) at
our SA PGM operations.
The increase in fatalities at our SA gold operations
in H1 2018 was mainly due to two anomalous
incidents: a seismic event at Driefontein’s
Masakhane shaft on 3 May 2018 during which
seven employees were fatally injured, and the
unauthorised entry of a crew into a barricaded
area, which was also closed off by a ventilation
door at Kloof’s Ikamva shaft, contrary to company
policies, on 11 June 2018 where five employees
succumbed to heat-related issues.
Another event that received media attention on
31 January 2018 was the loss of power to the
Beatrix operations due to an unusually severe
storm, which damaged the main and ancillary
Eskom electricity supply to the operations. The
situation was well-managed and there were no
injuries resulting from the incident. Employees were
brought to a safe environment underground at
Beatrix 3 shaft where they were fed, hydrated and
monitored until power was restored before they
were hoisted to surface.
Refer to our previous 2017 integrated annual report
(page 89) and the related fact sheet at
www.sibanyestillwater.com
The competent and orderly response by our
management emergency medical services,
supported by emergency rescue teams throughout
the industry, again proved their preparedness and
disaster-management capabilities.
Remedial action: Immediately after any serious
accident, an investigation is conducted in terms
of the Mine Health and Safety Act (MHSA) and
remedial action is implemented.
An employee, preparing to work underground at one of our SA gold operations, wears personal protective equipment (PPE)
Sibanye-Stillwater Integrated Report 2018 105
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION ENSURING SAFE PRODUCTION CONTINUED
IN MEMORIAM
The Board and management of Sibanye-Stillwater extend their deepest condolences to the families, friends and colleagues of our employees
and contractors who lost their lives in the line of duty during the year.
Date
Operation
Name
Occupation
Incident
Kloof 4 (Ikamva)
Fall of ground
12 February
Solly Ngobeni
Team Leader
Chicco Elmon Dube
Winch Driver
Driefontein 1 (Masakhane) Matela Mating
Tramming Miner
Mud rush
17 February Driefontein 10 (Thabalang) Zanempi Mncwazi
Electrical Assistant
Electrocution
28 February Kroondal K6
Otshepeng Ernest Ramosito
Steel Fixer
Struck by conveyor structure
24 March
Rustenburg Khuseleka 1
Ntokozo Elias Ntame
Winch Operator
Scraper winch-related
21 April
Driefontein Ya Rona
Mlungisi Vukuthi
Construction Assistant
Fall of ground
Luke Bongumusa Mngomezulu
Special Team Leader
Baptista Paulino Cuambe
Winch Operator
X-Mas Madikizela
Rock Drill Operator
3 May
Driefontein 1 (Masakhane)
Mbulelo Albert Sonqowa
Rock Drill Operator
Seismic event
Thabo Abram Ntsekhe
Rock Drill Operator
Nkosiphendule Dudlela
Rock Drill Operator
Luis Ernesto Lumbe Gazala
Winch Operator
Lingani Innocent Mngadi
Shift Boss
Lakhi Msada
Rock Drill Operator
11 June
Kloof 4 (Ikamva)
Mthokozisi Msutu
Winch Operator
Heat-related
Cedrick Nkuna
Winch Operator
Kholekile Phelile
Rock Drill Operator
15 June
Driefontein (Hlanganani)
Thokozani Tembe
Winch Operator
Fall of ground
26 June
Driefontein (Khomanane)
Bhekithemba Thembinkosi Ndabeni
Winch Operator
Scraper winch-related
18 July
PGM Surface Operations
Grace Mlambo
Train Driver Assistant
Struck by locomotive
on railway
5 August
Kloof (Hlalanathi)
Philemon Mngakana
Contractor
Heat-related
25 August
Beatrix North
Morapedi Patrick Kalane
Stope Team Labourer
Fall of ground
106
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Lost time injury frequency rate (Group)
Fatal injury frequency rate (Group)
8
7
6
5
4
3
2
1
0
6.74
6.62
5.87
5.78
5.89
6.19
5.58
14
15
16
17
18
18H1 18H2
0.30
0.25
0.20
0.15
0.10
0.05
0
0.27
6.19
0.16
0.12
0.1
0.07
0.06
0.04
14
15
16
17
18
18H1 18H2
Serious injury frequency rate (Group)
Fatal injury frequency rate (Gold operations)
5
4
3
2
1
0
4.68
4.16
3.88
3.57
3.70
3.99
3.40
14
15
16
17
18
18H1 18H2
0.5
0.4
0.3
0.2
0.1
0
0.41
0.13
0.11
0.14
0.08
0.06
0.07
0.09
0.08
0.05
H1
H2
H1
H2
H1
H2
H1
H2
H1
H2
2014
2015
2016
2017
2018
CARING FOR
AFFECTED PEOPLE
In line with our values and
our duty of care, financial and
psychological assistance is provided
to the families of our deceased
colleagues, including counselling,
funeral funds, education of children
until tertiary level, employment of a
family member and visits by Human
Resources (HR), as well as health
and safety stewards.
For more information on support
of injured employees and families
of deceased colleagues, see
Matshediso Programme in superior
value for the workforce
Safety performance
Fatalities
Fatal injury
frequency rate 3
Lost-time injury
frequency rate 3
Serious injury
frequency rate 3
Medically treated injury
frequency rate 3,4
Number of Section 54/
regulator work stoppages
Production shifts lost
owing to Section 54/
regulator stoppages
2018
2017
2016
2015
2014
Group
US
SA
operations
operations
Group
2 US
1 SA
operations
operations
Group
SA
SA
SA
operations
operations
operations
PGM PGM Gold
PGM PGM Gold
PGM Gold
Gold
24
0
3
21
11
0
2
9
14
2
12
7
Gold
12
0.16
0 0.05 0.24
0.07
0 0.04 0.09
0.10 0.09 0.11
0.06
0.12
5.89
9.97 4.68 6.52
5.78
1 7.80 4.69 1 6.33
6.62 4.84 6.99
6.74
5.87
3.70
7.12 2.20 4.53
1 3.57
6.28 2.59 4.12
4.16 2.88 4.42
4.68
3.88
2.69
23.94 1.95 2.32
1 2.60
24.65 1 2.44 1 2.26
3.85 5.72 3.47
3.60
3.37
263
NA
44
219
230
NA
26
204
226
55
171
109
77
545
NA 149
396
238
NA
49
189
402
245
157
70
99
1 Restated due to rounding and re-application of Group safety definitions
2 May to December 2017
3 Per million hours worked
4 Also referred to as treat-and-return injury frequency rate (TRIFR), which includes certain minor injuries
Note: Group data for 2016 includes the gold and PGM operations from the relevant dates of acquisition during the year while that for 2017 includes
the US PGM operations from May 2017
Sibanye-Stillwater Integrated Report 2018 107
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION ENSURING SAFE PRODUCTION CONTINUED
ACHIEVEMENTS IN 2018
During the second half of the year, safety performance improved significantly across the SA operations. By year end, we had achieved an historic
record fatality-free period and several fatality-free shift milestones. At Stillwater in the US, operations also recorded a new record low incidence
rate of 13.16 per million hours.
Our performance in perspective: SA peer comparison1
Serious injury
frequency rate
Serious injury
frequency rate
ranking
Lost time
injury
frequency rate
Lost time injury
frequency rate
ranking
Fatal injury
frequency rate
Fatal injury
frequency rate
ranking
2.20
4.25
2.83
1.29
4.53
4.98
4.01
2
4
3
1
2
3
1
4.68
5.93
4.07
2.10
6.52
8.21
6.22
3
4
2
1
2
3
1
0.050
0.022
0.026
0.027
0.24
0.07
0.11
4
1
2
3
3
1
2
Company
PGM
Sibanye-Stillwater SA PGM operations
Peer 1
Peer 2
Peer 3
Gold
Sibanye-Stillwater gold operations
Peer 1
Peer 2
1 Rates are per million hours worked
FATALITY-FREE SHIFTS (2018)
+1 million
Khuseleka
+2 million
Thembelani
+3 million
+4 million
+5 million
PGM operations
Total PGM mining
operations
Total Sibanye-Stillwater
SA operations
Kroondal mining operations
Rustenburg mining operations Kloof (Thutukhani)
PGM surface operations
(12 million)
Kroondal operations
Total Kloof
Total Driefontein
Kroondal East (Kopaneng,
Simunye and Bambanani)
Kloof Upper and Cooke
Kroondal surface operations Gold operations
Rustenburg operations
Kopaneng
Gold operations
BMU1
(North and South shafts)
Bambanani (D6 shaft)
Beatrix
Sibanye-Stillwater Gold
Driefontein (Ya Rona shaft)
Beatrix North (3 shaft)
Total plants and concentrators
Care and maintenance operations
Simunye
Simunye and Bambanani
US PGM operations
108
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION 2018
MINESAFE
INDUSTRY AWARDS
Year-on-year safety improvements
For an improved year-on-year total injury frequency rate, our
gold operations received MineSAFE awards:
• 1st Kloof’s Thutukhani shaft
• 3rd Driefontein’s Pitseng shaft
• 8th Kloof’s Masithembe shaft
Best in Class Safety Award
With the total injuries of each participating unit converted into
a total injury frequency rate, our SA PGM operations received a
Best in Class Safety Award:
• 5th Sibanye-Stillwater Chrome Tech (Michael Kungoane)
SHORT-TERM INITIATIVES
An intensive programme, initially implemented in November 2017,
to promote responsible application of the provisions of Section 23 of
the MHSA, and which affords employees the right to withdraw from
unsafe working conditions, was relaunched in 2018.
To address the distressing spate of anomalous fatal incidents in
2018, specific short-term initiatives were implemented enhance
safety performance.
One of these short-term initiatives was a review of our organisational
culture and leadership methods to ensure that safety is top of mind
in decision-making, at all levels, and to reinforce that all decisions are
informed by our CARES values. In addition, at mid-year, the safety
performance weightings in management’s remuneration packages
were reviewed and adjusted (see Remuneration report on page 176).
Specific initiatives included:
• Internal and Minerals Council safety day stoppages with
signed team pledges
• Additional capacity building of safety representatives and
shift bosses
• Introduction of a dedicated anonymous safety hotline
• Introduction of cardinal rules
• 90-day intensive care sessions including communication at
all supervisory levels
• Industrial theatre
• Visible felt leadership and crush initiatives with face-to-face
interactions when people are coming on shift (current safety
message relayed or re-emphasised)
• Mass meetings with all shifts
• Cross audits between different sections (discipline leads from other
shafts perform audits in other areas to share best practice)
• Close-out A hazards
• Focus on top five causes of accidents and review of critical controls
• Increased alcohol testing at all access points
• Appointment of psychological counsellors to support employees
dealing with relevant matters
• Fatigue management
• Review of bonus schemes for safety officers and supervisors to
further promote safe behaviour
At our US PGM operations, an employee prepares to work safely during his shift
Sibanye-Stillwater Integrated Report 2018 109
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
ENSURING SAFE PRODUCTION CONTINUED
MULTI-STAKEHOLDER SAFETY AND HEALTH SUMMITS
Three multi-stakeholder safety and health summits – in May, June and August 2018 – were attended by representatives of organised labour,
the Department of Mineral Resources and senior management. These summits addressed concerns raised at the inaugural summit, and other
concerns raised by organised labour on safety days, at memorial services and on the shop floor. All stakeholders committed to working together
to make workplaces safer, to protect jobs, and to collaborate in all matters related to safety, health and well-being.
The Department of Mineral Resources, the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers
(NUM), United Association of South Africa (UASA) Solidarity and management signed a pledge:
“As organised labour, the Department of Mineral Resources and the management
of Sibanye-Stillwater, we acknowledge the parties’ statutory obligation and
workers’ right that our destiny is shared and commit ourselves, through
constructive, transparent collaboration and compliance, to achieving zero harm”
The summits were convened to align stakeholder expectations with internal initiatives and were intended to embed an organisational culture that
supports safe production. The recurring themes noted by the safety working group were people, systems and the environment. Implementation
task teams were formed, comprising four representatives each from management and organised labour, who visit sites to monitor progress and
provide feedback on the organisational culture transformation, values alignment, leadership development, effective communication, high impact
training and safe production issues (as illustrated in the safety summit work streams below).
Organisation
culture
transformation
Workshop the
Sibanye-Stillwater
values-driven culture
transformation
journey
Values
alignment
Leadership
development
Effective
communication
High-impact
training
Safe
production
Workshop the five
Sibanye-Stillwater
values
Workshop the
Sibanye-Stillwater
leadership competency
and behaviour
Workshop the
Sibanye-Stillwater
Communications
Framework and
supporting protocols
Establish effective
training interventions
to equip people for
safe production
Creating an enabled
work environment
19% (2017: 17%) of the total. It was encouraging
to note an improvement of over 50% (102 to 46)
in injuries related to rail-bound equipment as we
continue to focus on the following:
• Engagement with stakeholders through safety
and health roadshows and awareness campaigns
• Upholding compliance through training
• Converting rail-bound equipment safety devices
and no-repeat solutions by engineering out
the risk with effective coupling pins, re-railing
devices and speed indicators
• Rail inspection and maintenance management
system strategy (maintenance programme/
schedule for rails and switches)
• Critical learning and close-outs (improving the
quality and speed of close-outs and lessons
learnt through the safety system)
“In the interests
of safety,
management
continues to focus
on key areas of
mobile equipment
inspection and
maintenance”
RISK MANAGEMENT
As integrated risk management is an essential
component of the Sibanye-Stillwater safe production
approach, we have increased the use of the bow-tie
methodology to enhance critical risk controls.
SA gold operations
The number of safety-related stoppages at the SA
gold operations increased from 204 Section 54s in
2017 to 219 in 2018. Of the 219 Section 54s, 108
were as a result of mass audits by the Department
of Mineral Resources.
With low frequency of accidents when they do
occur but with high consequences, the top risks
in the SA gold operations include seismicity,
rock mass failure, vertical transport, rail-bound
transport and heat.
Tools, equipment and material were the main
contributors to injuries at our gold operations in
2018, representing 25% (2017: 23%) of total
injuries. Fall of ground-related injuries accounted for
110
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA PGM operations
US PGM operations
At our PGM operations, LTIFR performance
improved from 4.69 per million hours
worked in 2017 to 4.68 in 2018 and the
SIFR performance improved from 2.59 in
2017 to 2.20 in 2018.
Low energy incidents remain the main
contributors to injuries on duty and
contributed 70% towards the total amount
of incidents recorded. Interventions
are implemented continuously to raise
awareness and prevention of these types
of incidents through engineering solutions
with the implementation of fit-for-purpose
tools and equipment, which is enhanced
with correct and adequate types and use of
personal protective equipment.
Management continues to focus on the
top risks of SA PGM operations, which are
conveyors, trackless mining equipment,
falls of ground, explosives, rail bound
equipment, winches and rigging, electricity
and material handling, by promoting a
health and safety culture through a risk-
based approach. In addition to focus on
the top risks, a major drive was initiated
to analyse all controls to ensure their
effectiveness. During the process, critical
controls are identified and required
resources allocated for less effective
controls in order to improve control
effectiveness.
Through the introduction of improved
industry technology governing the
interaction and retardation between
machines and pedestrians, the risk
exposure is reduced on trackless mobile
machinery.
Management remains committed to
safe mining by continuously ensuring
remedial actions are implemented
across all operations. Weekly visible felt
leadership interventions are conducted, and
learnings are shared and adopted across
all operations. The zero harm task team
is used to verify actions implemented as
well as proactively measuring other safety
improvement initiatives highlighted through
investigations, statistical analysis and
leading indicators.
This integrated approach, adopted and driven
by management, assures the improvement of
the lives of all our employees, stakeholders
and affected parties.
We remain committed to maintaining a
strong relationship with the union and
regulators to continuously improve safety
performance in the US PGM operations.
The SIFR and total medically treated injury
frequency rate (MTIFR) increased to 7.12
(2017: 6.28) and 23.94 (2017: 24.65) per
million hours worked, respectively in line
with an increase in injuries associated with
slips, trips and falls – accounting for 27%
(2017: 10%) of total reportable injuries,
compared to 10% to 17% in the past
five years.
The LTIFR of 9.97 (2017: 7.80) for the
US operations includes all reportable/
recordable injuries that resulted in either
restricted duty or days lost (number of lost
time injuries per million hours worked).
While injuries from slips, trips and falls are
common across all US industries, our US
operations are raising employees’ awareness
of these injuries, improving tidiness, and
improving working and walking surfaces
to reverse the trend. No specific cause or
condition could be identified to explain the
increase in slip, trip and fall injuries during
2018. It is encouraging that only 8% of
the reportable injuries sustained up to
March 2019 related to slips, trips and falls,
following revitalised awareness to these
types of injuries throughout the operations.
Historically, 30% of reportable injuries in
the US operations involved pneumatic jack
leg drills. A total of three reportable injuries
(6% of all reportable injuries) associated
with the use of a jackleg drill were reported
in 2018. Implementation of the drill
handling system, which affords lower risk
of injury than a jackleg, continues to reduce
dependence on jackleg machines and is
being embraced by more employers.
In the interests of safety, management
continues to focus on key areas of mobile
equipment inspection and maintenance,
quality training and retraining, workplace
audits, ventilation and equipment emissions,
and housekeeping. In addition to all
employees completing inspections at each
shift, an audit team randomly inspects and
scores work areas every day. The audit team
includes hourly and salaried employees, at
each site, solely responsible for evaluating
the workplace.
Technology provides timely communication
in the event of an emergency and systems
installed on mobile equipment warn
operators when employees are in close
proximity. Implementation of technology
at the operations is ongoing with phases
planned for implementation every year.
US PGM operations: Injuries by category
2018
1 2017
Rockfall
Struck by objects
(tools, equipment
and others)
Caught in/between
Strains
Operating
equipment
Operating jackleg
Eye injuries
Chemical burns/
other
Slips/trips/falls
1 May to December 2017
4
12
4
6
4
3
2
1
13
3
8
3
3
1
3
3
1
2
FUTURE FOCUS
We will continue the current safe production
strategy as well as the enhancement of
Sibanye-Stillwater’s culture, based on and
driven by our CARES values, while ensuring
that our leadership is ready and engaged,
and that desired behaviours and practices
(critical attributes, competencies and
capabilities) are defined.
A holistic Sibanye-Stillwater safety training
strategy, focusing on critical skills as well as
training content, methodology, infrastructure
and outcomes, is being developed to bolster
current training offerings.
Concurrently, we focus on technology as
an enabler to improve training competency
across the entire organisation and develop
partnerships in collaboration with the mining
industry to achieve effective skills and
knowledge transfer as a long-term initiative.
We are working towards certification in
terms of the ISO 45001 health and safety
management system, and the roll-out of the
bow-tie risk assessment methodology and
critical controls.
Sibanye-Stillwater Integrated Report 2018 111
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OCCUPATIONAL HEALTH AND WELL-BEING
IN LINE WITH SUSTAINABLE DEVELOPMENT GOALS
We continue to make progress in aligning our health strategy with that of the UN SDGs
2015 to 2030, focusing particularly on goal three, which refers to health and well-being.
The SDGs call for inter-sectoral action to achieve policy reforms in respect of universal
healthcare coverage and health system strengthening. Universal healthcare refers to
the alignment of policies, strategies and plans to ensure that all people have access to
promotional, preventative, curative and rehabilitative healthcare services of sufficient
quality to be effective while providing financial risk protection. This requires improving
access to healthcare as well as broadening the scope of services, quality of care and
financial protection.
HEALTH AND WELLNESS MODEL
WIDER HOSPITAL
NETWORKS
• Covered by Rand
Mutual Assurance
from first day
• Trauma-accredited
• Provision of
specialised care
PRIMARY HEALTH
CARE CENTRES
• Qualified support staff
• Doctor support
available 24/7
• Case management
OCCUPATIONAL
HEALTH
• Rehabilitation
• Fitness to work
• Functional and
physical capacity
testing/evaluations
HEALTHY EMPLOYEES
PERSONALISED CARE
MANAGEMENT
• Longer productive life
• Reduced ill health
retirement
PRIMARY
HEALTHCARE –
SATELLITE CLINICS
• Nurse-based care
• Available during
office hours
SHAFT CLINIC
• Primary healthcare
nurse closer to work
• Supervision of
TB medication
• Health risk
assessments
EMERGENCY
MEDICAL SERVICES
• Advanced paramedic
teams
• Rescue services
available 24/7
APPROACH
As we strive towards zero harm in our
workplaces and to deliver our stated
purpose – our mining improves lives – we
need to safeguard the health and well-
being of our employees, their families and
communities in order to ensure that they are
appropriately positioned to undertake their
daily responsibilities safely and efficiently.
Our Group health and wellness strategy
is aligned with the United Nations (UN)
Sustainable Development Goals (SDGs),
and is reviewed and enhanced continuously
with the adoption of global strategies to
overcome complex health challenges.
Guided by our CARES values, our health
and wellness model in South Africa
has been designed to address the risks
presented by the internal and external
environments facing employees and has
been implemented with favourable clinical
and financial outcomes thus far. To this end,
the individualised care we provide includes:
• Access to occupational health
resources that assess health risks,
determine fitness to work, and manage
disease and rehabilitation
• Shaft clinics close to the workplace
with qualified primary healthcare staff
providing health risk assessments and
disease treatment for communicable
diseases – tuberculosis (TB) and HIV – and
chronic ailments (diabetes and heart
disease, among others)
• Satellite primary healthcare clinics
with qualified nurses operating during
office hours
• Primary healthcare centres with
qualified doctors and nurses managing
cases 24/7
• Emergency medical services equipped
with advanced paramedical teams and
24/7 rescue capability
• Wider hospital networks offering
specialised care for trauma as well as
occupational injuries and diseases
• Medical aid schemes that protect our
employees from the financial risk of high
medical costs
Although the occupational risks and
wellness challenges at the US operations are
significantly different (and less) than those
present in the SA operations, industrial
hygiene staff are on site to continuously
monitor occupational health and wellness.
112
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SIBANYE-STILLWATER HEALTH MODEL ROAD MAP
Progress on our Health and Wellness model in South Africa is informed by a road
map that has taken us from the establishment and optimisation of our clinical
resources in 2013 to excellence in disease prevention in 2018.
2014
2015
2016
Resourcing and
optimisation
Efficiency
• Efficiency
towards
excellence in
clinical care
2017
Efficiency
towards
excellence
in disease
prevention
2018 and
beyond
Excellence
in disease
prevention
Hospital-based care
Clinic-based care
Wellness – introducing
cardiorespiratory fitness
as the new vital sign
Provision for affordable healthcare presents
a challenge that is managed in terms of data
analytics, which provide:
• Insight and transparency of aggregate claims,
costs and utilisation
• Information on patient clinical needs to assist in
identifying gaps in care
• Competition between local providers on cost
and quality of care to maximise value
The US operations’ health and welfare benefit
plans provide access to primary care and specialty
care for our employees. A contracted national
network partner, Cigna, enables our employees
and their families to seek medical and mental
health treatment services throughout the US. The
structure of our health plan provides incentives
for members to seek care locally or within the
state of Montana. Incentives include lower costs
in the form of discounted services and lower
contributions from their wages. Employees and
their families also receive co-ordinated and more
personalised care from physicians and practitioners
who are familiar with the patient’s medical history
and overall health. South-central Montana has two
reputable and competing hospital systems, which
each have a presence in many of the outlying rural
communities.
Our US operations have a health insurance funded
model that allows all US-based employees to
consult insurance-approved healthcare providers.
Employees have access to our clinics in rural areas close to our SA gold operations
Sibanye-Stillwater Integrated Report 2018 113
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OCCUPATIONAL HEALTH AND WELL-BEING CONTINUED
PERFORMANCE
In most cases, employee health is closely related
to employee safety. Our safety value encompasses
occupational health and well-being, which can affect
safety performance (see our model on workplace risk
and behaviour). In South Africa, in line with employees’
rights and responsibilities in terms of declaring a
workplace safe, employees must ensure they are
ready for work daily by declaring “I am fit, healthy
and competent to perform my tasks”, which is part of
our safety campaign. Sibanye-Stillwater also conducts
annual medical examinations of all employees engaged
in risky work to ensure that they are fit and healthy
enough to meet the inherent requirements of the work
assigned to them.
For more information on the two significant safety
events in South Africa in the first half of the year, as
well as subsequent safety milestones achieved, refer to
Ensuring safe production from page 102 of this report.
We sponsor mobile clinics that provide healthcare to the Rustenburg community near our
SA PGM operations
COMPREHENSIVE HEALTHCARE IN SOUTH AFRICA
Our quarterly health forum, including representatives of organised labour,
focused on a 12-year outlook for health and repositioning of healthcare
funding as well as the provision of healthcare to all operations.
In addition, on a global platform, through the Chief Medical Officers Network,
we committed to addressing workplace health concerns, such as antimicrobial
resistance, obesity, mobility and mental health. Experiences were shared,
including a review of our mental health offering and insights into workplace
disaster management. We have also invested in training social workers as
employee counsellors.
At Beatrix, the pilot project on the social determinants of health highlighted
the fact that a number of lifestyle habits, such as smoking, alcohol
consumption and lack of exercise, contribute significantly to the disease
burden. Other behaviours, such as the sharing of medication and non-
adherence to prescribed medication, are additional contributing factors.
Of particular significance is the stress and anxiety reported by participants due
to unhealthy relationships and financial hardships, which lead to excessive
drinking, smoking and multiple partners. The drug and alcohol awareness
programme at our SA operations has reached more than 13,395 employees to
date and aims to promote responsible alcohol consumption.
HIV self-testing, which began on World Aids Day in December 2017, continued
throughout 2018 in collaboration with Re-Action, a social purpose enterprise
delivering, among others, health and sustainability programmes and services. A
total of 3,202 employees and partners received HIV self-testing kits at two sites
and participated in the initiative. This provided a convenient and alternative
testing option. The pilot implementation was informed by consultation with key
stakeholders, including employees, senior management and health providers.
We found that 7% of these people had never tested for HIV and 35% had not
tested in the past 12 months. This presents an opportunity to find undiagnosed
HIV-positive employees and to strengthen our HIV screening programme. The
findings have been presented to the World Health Organisation and UNAIDS
for use in formulating international guidelines on HIV self-testing.
MEDICAL SCHEME STRATEGY
The healthcare strategy adopted by the SA operations
advocates a preventative approach, which funds and
manages the continuum of healthcare in preference
to providing healthcare services. This is exemplified by
the growth in medical scheme membership from 8%
in 2013 to 51% in 2018, and the support for universal
healthcare coverage. The long-term strategic objective
is to invest in a single multi-commodity medical
scheme, which can provide a customised solution for
all employees and their dependants by 2020 while
also leveraging economies of scale. The fundamental
principle in providing healthcare coverage to people in
need and equitable benefits to all employees have been
included in the product design for 2019.
During the 2018 gold wage negotiations, three of the
representative unions at the SA gold operations reached
consensus on the inclusion of transitioning employees
from company-provided healthcare to a medical scheme
model as part of the formal wage agreement. A task
team will expedite the process in 2019.
For the SA PGM operations, the task team convened in
2018 to oversee the transition from multiple medical
schemes to a basket of five medical schemes. This resulted
in the successful transitioning of 12,500 employees, their
dependants and 843 pensioners from Platinum Health
Medical Scheme to Sisonke Medical Scheme, Sibanye-
Stillwater’s in-house restricted medical scheme, which has
become the scheme of choice for over 65% of employees.
In an effort to represent the interests of employees
and the organisation in a transparent manner, we
have formalised employer-participation agreements
with all participating schemes in order to enhance
the relationship between the funders, providers, the
Department of Health and Sibanye-Stillwater.
114
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA operations: Healthcare funding (R million)
Medical schemes
Company-funded
Compensation for occupational injuries
and diseases 1 (Rand Mutual Assurance)
Total 1
2018
2017
2016
Total
PGM
Gold
Total
PGM
Gold
Total
PGM
Gold
725
282
213
1,220
421
12
77
510
304
270
714
324
136
710
208
1,246
404
21
69
495
310
303
138
751
679
318
210
1,207
386
14
70
470
293
305
140
738
2015
Gold
268
323
124
715
1 Healthcare funding costs exclude Occupational Diseases in Mines and Works Act dust levies for gold (R392 million from 2013 to 2018) and PGM
operations (R4.8 million from acquisition to 2018)
SA operations: Funding employee healthcare (Number of employees)
2018
2017
2016
Total
PGM
Gold
Total
PGM
Gold
Total
PGM
Gold
2015
Gold
Principal medical scheme members
26,212
18,696
7,516
27,298
18,909
8,389
29,456
20,912
8,544
8,416
Company-funded employees
24,736
0
24,736
24,328
0
24,328
29,188
0
29,188
31,309
Total employees
50,948
18,696
32,252
51,626
18,909
32,717
58,644
20,192
37,732
39,725
Employees on medical schemes (%)
51
100
30
53
100
26
50
100
23
21
SA operations: Medical conditions under management
2018
2017
2016
Total
PGM
Gold
Total
PGM
Gold
Total
PGM
Gold
2015
Gold
Chronic medical conditions (schemes)
10,862
6,871
3,992
13,532
8,546
4,986
13,242
8,451
4,791
4,700
Chronic medical conditions (company)
8,364
0
8,365
8,978
0
8,978
9,790
0
9,790
8,814
Total
19,227
6,871
12,357
22,510
8,546
13,964
23,032
8,451
14,581
13,514
SA operations: Occupational diseases (Number of cases reported)
Silicosis 1
Chronic obstructive airways disease 1
Noise-induced hearing loss 1
2018
2017
2016
Total
PGM
Gold
Total
PGM
165
70
243
106
41
167
59
29
76
261
50
193
68
13
100
Gold
193
37
93
Total
PGM
Gold
240
46
188
89
16
62
151
30
126
2015
Gold
186
57
105
1 Number of cases reported includes new and resubmission cases
“The healthcare strategy adopted by the SA operations advocates a
preventative approach, which funds and manages the continuum of
healthcare in preference to providing healthcare services”
Sibanye-Stillwater Integrated Report 2018 115
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OCCUPATIONAL HEALTH AND WELL-BEING CONTINUED
SA operations: Occupational health management
2018
2017
2016
Total
PGM
Gold
Total
PGM
Gold
Total
PGM
Gold
2015
Gold
Medical surveillance
and certificate of fitness
examinations – Total 1
Employees
Contractors
Days lost due to health-related
absenteeism
123,846
50,146
73,700 145,689
52,852
92,837 140,354
52,408
87,946
84,022
101,152
35,140
66,012 103,841
21,673
82,168 108,135
39,145
68,990
69,284
22,694
15,006
7,688
41,848
31,179
10,669
32,219
13,263
18,956
14,738
776,365 293,822 482,543 826,475 321,104 505,371 817,075 340,408 476,667 478,568
1 Includes heat tolerance screening test (HTS)
HEAT-RELATED ILLNESS
Following a multiple fatality heat-related safety
incident at Kloof’s Ikamva shaft on 11 June 2018,
the SA gold and PGM operations reiterated for all
employees standards and procedures regarding
thermal stress, including safe declaration and
withdrawal temperature limits to all employees
(in terms of sections 22 and 23 of the Mine
Health and Safety Act). Action undertaken
includes continuing to promote awareness of
heat-related disorders and retraining of all safety
representatives, team leaders, artisans, miners,
foremen and shift bosses about monitoring
workplace temperatures. The on-mine visitors’
procedure, overtime standard and thermal stress
threshold have also been reviewed. In addition, the
underground working environment is monitored
through statutory audits. By assessing risks and
implementing control measures, we strive to
ensure acceptable environmental conditions to
enable safe production.
RADIATION EXPOSURE
Radiation levels are monitored so that employees
are not exposed to this health risk, particularly at
operations with high levels of radiation, such as
Cooke 4, which is on care and maintenance.
At our SA operations we comply with the
conditions in our certificate of registration with
the National Nuclear Regulator by maintaining
employee exposure to ionising radiation at less
than 20 millisieverts (mSv) per annum.
As a proactive measure in our US operations, a
radiation safety officer was employed in 2018.
The processing facilities use nuclear gauges to
measure density and monitor vessel levels. The
source is then regulated by the Nuclear Regulatory
Commission and a radiation safety programme.
116
Sibanye-Stillwater Integrated Report 2018
UNDERGROUND VENTILATION AND REFRIGERATION
Our underground ventilation and refrigeration systems are reviewed annually
against planned production targets to enable safe and productive work.
Environmental controls are designed to ensure that underground temperatures
remain below 31°C wet bulb. The annual review includes:
• macro-ventilation distribution per shaft and ventilation districts to ensure
availability of the required volume of air in each workplace at an acceptable
intake temperature
• refrigeration availability and distribution per shaft in order to optimise the
effectiveness and positional efficiency of available cooling
“At our SA
operations,
employees’
exposure to noise
is monitored
in terms of the
Mandatory Code
of Practice on
Noise, issued by
the Department of
Mineral Resources”
NOISE-INDUCED HEARING LOSS
Better detection systems and improved
accountability have led to reporting of more
cases of noise-induced hearing loss (NIHL) despite
greater efforts to address this occupational health
issue (see table on page 115 for number of cases
reported to date). The diagnosis of NIHL is made
on assessment of the percentage hearing loss
from baseline audiograms with NIHL defined as a
shift in excess of 10% that has developed over a
prolonged period after repeated exposure to noise
levels exceeding 85dB(A).
At our SA operations, employees’ exposure to
noise is monitored in terms of the Mandatory
Code of Practice on Noise, issued by the
Department of Mineral Resources. The Minerals
Council South Africa, as a representative of the
South African mining industry, also supports this
process by sourcing leading practices through the
Mining Industry Occupational Safety and Health
(MOSH) initiatives.
Investigations are underway to mitigate personal
noise exposure for employees, including
engineered solutions (such as silencers on rock
drills and visible warning signs in relevant areas)
in tandem with personalised hearing protection
devices, such as earplugs.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION The Mine Health and Safety Council (MHSC)
milestone for noise reduction, ensuring all process
noise (including machinery) is below 107dB(A)
by 2024, can be achieved by ensuring 100%
availability and effectiveness of installed noise
control equipment (such as inline fan silencers)
and practices (such as demarcating noise zones for
hearing protection). We also implement the MOSH
Buy Quiet Policy, which commits us to procure
only equipment and machinery that complies with
specific noise-emission requirements.
Personal noise exposures are also routinely
monitored within the US operations in terms of a
dedicated hearing conservation programme, which
provides training on the effects of noise as well as
personal protective equipment (PPE) and annual
audiograms to detect NIHL. No elevated exposures
were recorded in 2018.
DUST MANAGEMENT
In South Africa, where exposure to silica dust
has historically been a significant factor causing
occupational health issues, specifically at the SA
gold operations, plans are in place to achieve
the MHSC milestone for silica dust exposure to
be below 0.05mg/m3 for 95% of all silica dust
measurements by 2024. A step-down approach has
been implemented since 2014 to achieve an annual
improvement of 20% every year. This is achieved
by ensuring 100% availability and effectiveness of
respirable installed dust control equipment (such as
tip filters) and practices (such as watering down).
At our SA operations, employees’ exposure to
airborne pollutants (including silica dust) is monitored
in line with the Mandatory Code of Practice for an
Occupational Health Programme (Occupational
Hygiene and Medical Surveillance) on Personal
Exposure to Airborne Pollutants of the Department
of Mineral Resources.
The Minerals Council supports this process by
continuously monitoring leading practices through
MOSH initiatives.
To mitigate the negative health impacts of dust,
particularly disease-causing silica dust on gold
mines, a new leading practice for dust control was
introduced at all shafts in the SA gold operations
during 2018: continuous real-time dust monitoring
of airborne pollutants. Dust monitors have been
installed to identify activities that generate dust.
Control measures are then implemented, including
employee education, protection at main ore pass
systems (tip covers and filtration systems) and
winch covers.
The dust load indicates the volume of silica-bearing
dust created by our SA gold operations, which can be
controlled through a variety of measures. It has reduced
over time with the installation of certain devices such
as footwall treatment, tip filters and tip covers, stope
atomisers and handheld sprays. The real-time dust
monitors, introduced to locate sources of dust and as
an additional control measure, further reduced overall
dust load and silica exposure levels in 2018.
SA gold operations: Average dust load on filter (mg/m3)
2009
MOD5 tip filter units
2012
Introduction of silver
membrane filters
2008
Haulage sprays
2010
Haulage sprays
2013
Winch covers
Other initiatives
2011: Tip covers
2012: Radial doors
2014: Health rooms
2015: Silicosis awareness campaign
2016: Tip sprays and handheld sprays
2014
Stope atomisers
2017-2018
Real-time monitors
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
)
3
m
/
g
m
(
2008
2009
2010
2011
2012
2013
2015
2014
2016
2017
2018
Similar trends are found in all mining companies with monthly or annual increases or decreases. The overall
annual trend should indicate improvements in line with MHSC milestones until absolute consistency is
achieved in maintenance and use of interventions and dust control practices.
“Personal noise exposures are also routinely
monitored within the US operations in terms of
a dedicated hearing conservation programme,
which provides training on the effects of noise as
well as personal protective equipment”
Sibanye-Stillwater Integrated Report 2018 117
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OCCUPATIONAL HEALTH AND WELL-BEING CONTINUED
OCCUPATIONAL LUNG DISEASE
In November 2014, Sibanye-Stillwater, Anglo American South Africa, AngloGold
Ashanti, Gold Fields, Harmony and African Rainbow Minerals formed an
occupational lung disease (OLD) industry working group to address issues relating
to compensation for OLD in the gold mining industry of South Africa.
The working group’s aim was to develop, in conjunction with key stakeholders, a
comprehensive and sustainable solution to address concerns about compensation
for OLD. Sibanye-Stillwater has been involved in tracking and tracing employees
to settle claims relating to silicosis. We have also collaborated with financial
institutions and the Mineworkers Provident Fund in distributing unclaimed
pension funds.
For more information on the working group and its efforts, see www.oldcollab.co.za
On 3 May 2018, the working group as well as attorneys – Richard Spoor, Abrahams
Kiewitz and the Legal Resources Centre – announced that they had reached a
settlement in the silicosis and TB class action litigation. The settlement awaits
approval by the South Gauteng High Court.
For more information, visit www.silicosissettlement.co.za
SA operations: New and resubmitted cases of occupational lung diseases
Silicosis
Gold
PGM
Chronic obstructive
airways disease
Gold
PGM
Cardiorespiratory tuberculosis
Gold
PGM
2018
2017
2016
2015
59
106
29
41
325
155
193
68
37
13
422
148
151
89
30
16
545
73
186
57
679
Cases and claims: Medical Bureau for Occupational Diseases and
Compensation Commissioner for Occupational Diseases
Cases assessed by Medical Bureau
for Occupational Diseases
Claims processed by Compensation
Commissioner for Occupational Diseases
2018
2017
2016
2015
9,854
14,732
18,251
6,575
10,575
8,727
4,356
1,177
Total paid to beneficiaries (R million)
212
250
171
56
At our SA PGM operations, dust exposure is relatively
low but reducing dust on surface, particularly blown
off tailings facilities is an ongoing focus area. One
personal exposure sample taken at a tailings facility
exceeded the occupational exposure limit of 3mg/m3
during the year.
See Minimising the environmental impact for
mitigation measures on page 143 of this report.
Sibanye-Stillwater met formally with the Medical
Bureau for Occupational Diseases (MBOD) about
outstanding dust levies prior to the Group’s
acquisition of the Rustenburg operations. The MBOD
has requested additional time for an official response.
In our US operations, to uphold compliance,
potential airborne hazards are monitored and
pulmonary function is tested annually at all three
properties. Industrial hygiene monitoring results
indicate the effectiveness of workplace engineering
and administrative controls. Where controls are
not effective in reducing exposure, specific action
plans are implemented. In addition to routine
monitoring by employees and the State of Montana,
independent industrial hygiene consultants evaluate
exposures at the Metallurgical Complex. All results
were under exposure limits in 2018. Third-party
sampling will continue in 2019.
The analytical laboratory in our US operations does
not fall within the Occupational Safety and Health
Administration’s regulation for lead exposure but has
voluntarily implemented controls and monitoring to
ensure employees are not exposed to lead.
Dust is controlled by water sprinklers in our
underground SA gold operations
118
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DIESEL PARTICULATE MATTER CONTROL
Among the airborne pollutants that may compromise the health of employees is diesel particulate matter (DPM), which can lead to chronic
obstructive airways disease (characterised by chronically poor airflow, resulting in shortness of breath, coughing and sputum production)
due to long-term exposure. Diesel exhaust emissions (including DPM) have been declared human carcinogens (cancer-causing agents).
Across the Group, mitigation measures include increasing dilution ventilation and equipment maintenance to reduce employees’ exposure.
PPE is also provided to further reduce personal exposure.
Routine sampling continues at the US operations. In 2018, the East Boulder underground operation did not have sample results exceeding
0.176 milligrams per cubic metre for elemental carbon. At Stillwater, respirators were required at two isolated areas underground. All
elevated results were followed with corrective actions and the areas were resampled to verify that these actions had been effective.
In addition to internal monitoring, mine operations periodically work with the Federal Department of Labor Mine Safety and Health
Administration Technical Support to evaluate ventilation controls.
In the SA operations, there is currently no legislated occupational exposure limit (OEL) but our internal control limit for exposure to DPM
is to maintain employee exposure at less than 0.2mg/m3 (measured as total carbon). In 2018, a total of 1,361 DPM personal exposure
samples were taken at the gold operations – 108 samples (7.9%) were above the Sibanye-Stillwater target of 0.2mg/m3. Investigations into
exposures above limit are conducted regularly to establish the root cause and to prevent recurrence. Of the 123 DPM personal exposure
samples taken at the SA PGM operations in 2018, 65 samples (52.9%) exceeded the Sibanye-Stillwater target.
The Sibanye-Stillwater target was advised by the Minerals Council while the industry awaits the legislated OEL for South Africa.
SA gold operations: Tuberculosis rates per 1,000 employees
Total tuberculosis
Pulmonary tuberculosis
Extra pulmonary tuberculosis
Cardiorespiratory tuberculosis
Multi-drug-resistant tuberculosis
2018
2017
2016
2015
2014
9.75
7.38
1.86
8.30
0.10
10.65
13.42
15.79
16.69
8.72
10.86
11.42
12.12
1.93
2.56
3.99
1.68
9.46
11.53
14.41
14.34
0.38
0.34
0.30
0.68
SA operations: Number of new and retreatment cases of tuberculosis
Tuberculosis
Cardiorespiratory tuberculosis
New cases of
drug-resistant tuberculosis
New cases of multi-drug-
resistant tuberculosis
2018
2017
2016
Total
PGM
Gold
Total
PGM
Gold
Total
PGM 1
Gold
539
480
157
155
13 Unknown
4 Unknown
382
325
13
4
623
570
28
17
148
148
0
0
475
422
28
17
707
618
73
73
24
Unknown
16
Unknown
634
545
24
16
2015
Gold
744
679
29
14
2014
Gold
832
715
-
34
1 Health data for the PGM operations (Kroondal and Rustenburg operations) for 12 months of 2016
Sibanye-Stillwater Integrated Report 2018 119
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OCCUPATIONAL HEALTH AND WELL-BEING CONTINUED
SA operations: HIV, VCT 1 and HAART 2
VCT offered
VCT conducted
HIV-positive
Proportion of workforce tested 7
New recipients of HAART 3
Category 3-8 employees on HAART
2018
2017
2016
Total
PGM
Gold
Total
PGM
Gold
Total
PGM
Gold
2015
Gold
59,900
28,153
31,747
51,122
25,008
26,114
54,541
27,226
27,225
23,538
20,544
11,681
8,863
20,326
9,932
10,394
28,717
16,728
11,989
8,505
887
33.4%
563
5,638
170
50%
0
0
717
1,168
113
1,055
2,204
650
1,634
1,929
24%
563
29%
40%
843
Unknown
23%
843
39%
62%
928
Unknown
26%
928
18%
875
5,638
5,688
0
5,688
5,561
Unknown
5,561
5,023
HAART patients who are employees 4
9,745
3,090
6,655
9,761
3,133
6,628
9,925
3,545
6,380
5,750
Employees who have left HAART
programme 5
HIV prevalence 6
1 Voluntary counselling and testing
2 Highly active antiretroviral therapy
3 Entry-level mining employees (Category 3-8)
8
0
4%
1%
8
8%
46
6%
0
46
1%
10%
86
8%
Unknown
86
4%
13%
127
23%
4 HAART patients alive and on treatment, total employees including category 3-8 employees
5 Employees who left HAART programme within 12 months of starting antiretroviral therapy (including retrenched employees with ill health and
any other labour-related terminations)
6 The prevalence rate reported is based on the number of employees testing positive as a percentage of the total number of employees tested in a
given period
7 VCT conducted as a percentage of total workforce (employees and contractors)
Our success in reducing the TB burden at our gold
operations, from 832 cases in 2014 to 382 cases
in 2018, can be attributed to improved access
to primary healthcare at shaft clinics, staffed by
qualified healthcare professionals who are able to
detect TB outside the hospital environment, and
treat the disease at an early stage.
Another contributing factor to the successful
interception of TB transmission is the high
retention rate of employees on HIV treatment at
12 months, which stands at 99% today. As TB
is activated when a person’s immunity is weak,
people enrolled in HIV treatment programmes
indirectly control the spread of TB.
Over and above these medical initiatives,
engagement with the Department of Health and
local communities is ongoing (see stakeholder
engagement). As a result, mainly due to actively
seeking TB sufferers and co-ordination of care, we
have seen a 61% decline in the spread of
TB since 2013.
“ We have been
acknowledged
by the Global TB
Caucus for our
ongoing efforts in
helping to end TB
and leading the
private sector in
reducing the rates
of TB and HIV in
South Africa”
COMMUNICABLE
DISEASE MANAGEMENT
We are collaborating successfully with the
Department of Health in South Africa and local
communities to control the spread of TB across
all operations.
In June 2018, we actively participated in an
international HIV and TB conference, sharing
experiences of challenges in dealing with the
social determinants of health from a corporate
perspective. We also articulated our contribution to
reducing the TB burden.
We have been acknowledged by the Global TB
Caucus partnership for our ongoing efforts in
helping to end TB and leading the private sector
in reducing the rates of TB and HIV in South
Africa. Sibanye-Stillwater and the Minerals Council
represented the private sector and the mining
industry leading up to and at the first high-level
meeting of the UN General Assembly on the fight
against TB (“United to end tuberculosis: an urgent
global response to a global epidemic”) in New
York on 26 September 2018. The meeting was
attended by heads of state and health ministers
from 192 countries who agreed to intensify efforts
to eliminate TB and accelerate efforts to reach all
affected people with prevention and care.
120
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION the families and dependants of employees.
We believe that we can achieve this by
leveraging cost efficiencies and effective
healthcare within the existing system.
Focus group discussions with our human
resources and health departments, as
well as organised labour, will continue to
empower leaders and inform healthcare
and safety decisions.
Sibanye-Stillwater health services provided
strong leadership in the three provinces in
which we operate:
FUTURE FOCUS
US PGM operations
• In the Bojanala district of North West
Province, all mining houses and medical
aid schemes participate in the national
Masoyise iTB initiative, which oversees
TB contact tracing. We also participated
in the 2018 TB/HIV summit, which was
followed by the provincial World Aids
Day event.
• In the Lejweleputswa district of the Free
State, we worked in partnership with the
MHSC and the Department of Health on
the 2018 World Aids Day. We believe that
this partnership will realise the WHO End
TB Strategy by 2035.
• In the West Rand district of Gauteng,
we work on community TB contact
tracing through the Masoyise iTB
initiative, which ensures that healthcare
workers are trained and focus remains
on reaching the National Strategic Plan
2017-2022 targets.
SOCIO-ECONOMIC FACTORS
AFFECTING HEALTH
A study of the social determinants
of health and well-being within the
workforce and communities around
Beatrix – a district with the highest
incidence of TB in South Africa – was
concluded in 2018.
As it found that financial debt has a
negative impact on employees’ health
and well-being, our policy on the living
out allowance, particularly in terms of its
impact on informal settlements, is being
reviewed.
In the SA operations, our employee
indebtedness programme, CARE for
iMali, designed to address some of these
issues has been well received.
See the fact sheet: CARE for iMali at
www.sibanyestillwater.com
In the US operations, our wellness
programme, managed by a specialist
service provider, pays attention to
employee wellness at home and in
the workplace, including the Financial
Finesse programme in which certified
financial planners provide solutions to
employees, without any bias, in one-on-
one or classroom-based settings.
The US PGM operations are not entirely
different from other US employer-sponsored
health plans in that high-dollar claimants
are the primary drivers of our cost trend.
Statistics demonstrate that the majority
of our healthcare costs are incurred by a
small fraction of our members. In 2019, we
embarked on a three-year commitment with
two robust and competing hospital systems
in south-central Montana and created
exclusive provider organisations through
which we contract directly with the hospitals
and their doctors. The hospitals have agreed
to compete for our business, recognising
that our financial contribution to the local
healthcare community is a significant portion
of their revenue stream.
We have introduced a unique benefit plan
design that encourages patient and provider
accountability. Managing the quality of care
is an important new focus. The hospital
systems have agreed to share financial
risk for unsuccessful treatments. This is
an exciting opportunity for an integrated
approach to healthcare using primary care
physicians to co-ordinate care, integrating
delivery systems that optimise primary and
specialty care, providing concierge-style
nurse navigators to help members receive
the most from their benefit plans, to answer
healthcare questions, and to manage chronic
conditions.
A team of US operations’ employees,
consultants and healthcare professionals is
dedicated to monitoring and evaluating the
performance of these networks, and will
recommend actions to leaders accordingly,
based on the performance of hospitals and
the new plans, and thus empower decisions
that will have a positive impact on the health
of our employees and their families.
SA operations
With a view to 2020, our SA operations are
working to ensure that all employees have
health insurance, that the scope of services
is equitable, that healthcare is accessible and
that employees are protected financially.
Long-term relationships with funders and
communities will form the basis of business
dealings aimed at measurable healthcare
outcomes.
Over the next five years, we will endeavour
to extend universal healthcare coverage to
On of our employees at our Columbus
Metallurgical Complex in the US
Sibanye-Stillwater Integrated Report 2018 121
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT
APPROACH
Sibanye-Stillwater’s purpose – “our mining
improves lives” – encompasses all stakeholders
directly impacted by our mining activities as
well as other stakeholders who may benefit
indirectly from our mining activities (health and
environmental benefits are derived from the use
of PGMs to improve air quality, for instance). We
engage meaningfully, as much as possible with
our stakeholders, to ensure that we are in a better
position to understand their perceptions of value
and deliver accordingly for mutual benefit.
Our vision is to share the benefits derived from our
mining operations with our communities not only
to uphold our social licence to operate but also to
spread our CARES values beyond the mine gate.
Our aim is to tangibly and holistically improve the
lives of those living in our host communities.
We share these benefits through partnership
and collaboration, engaging transparently with
communities, while integrating sustainable
development into our decision-making processes.
In South Africa, there is a specific regulatory
requirement for all mining companies to contribute
to local and labour-sending area upliftment and
development in order to secure a social licence
to operate. Sibanye-Stillwater is committed to
meeting and going beyond these targets in line
with our vision.
In South Africa, governed by our policies on
sustainable development, and on community
and indigenous peoples, our socio-economic
development programmes and corporate social
investment (CSI) initiatives are overseen by the
management-led Social Licence to Operate
Committee, which monitors the impact of
Sibanye-Stillwater’s socio-economic activities
at the SA operations. The Social and Ethics
Committee oversees and monitors, among
others, the social impacts of Sibanye-Stillwater’s
business activities on communities in SA and in
the US, particularly given our role as an ethical,
responsible corporate citizen.
For further information on the governance of
our activities in relation to communities, refer to
page 167 for the report of the Social and Ethics
Committee in Corporate governance
122
Sibanye-Stillwater Integrated Report 2018
IN LINE WITH SUSTAINABLE DEVELOPMENT GOALS
We continue to make progress in aligning our socio-economic
community development strategy with the aims of the United Nations
(UN) Sustainable Development Goals (SDGs), focusing particularly on:
PERFORMANCE
SA operations
Our community engagement goes beyond maintaining our licence to operate (see
fact sheets at www.sibanyestillwater.com) – our social licence to operate in terms of
earning the goodwill and trust of our host communities, and our regulatory licence
by complying with regulations and the spirit of the law in terms of socio-economic
development project implementation.
We contribute to our host communities and labour-sending areas, the society and
the economy at large, by investing in socio-economic development initiatives,
employing people who reside in the vicinity of our operations and through
preferential local procurement.
STAKEHOLDER
ENGAGEMENT
• Community engagement forums inclusive of key stakeholders
• Direct engagement with relevant government stakeholders
• Direct engagement with relevant social partners
SOCIAL AND
LABOUR PLANS
• Implementation of social and labour plans
• Reporting and compliance
STRATEGIC
PROGRAMMES
• Partnership with government and other private-sector players
to unlock alternative economic activities
• Corporate social investment and sponsorships
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION In line with our approach to creating and
sharing value, a stakeholder perception
index has been developed to measure and
monitor stakeholder perceptions. Initial
testing of the index was conducted among
selected stakeholder groupings, including
communities in the vicinity of our gold
operations on the West Rand and in the
Free State in 2018. The index highlighted
the following challenges, which we have
reviewed and are responding to accordingly:
• Employment – All job applicants have to
undergo medical fitness tests, and criminal
and credit record checks, before they are
employed by Sibanye-Stillwater. This process
has been misinterpreted by the communities
as an attempt to limit local employment.
• Legacy issues and transparency – an
unintended consequence of the growth
and changes Sibanye-Stillwater has
undergone since it was established in
2013. Where legacy issues exist, due to
unresolved historic issues with companies
that owned the assets prior to us taking
ownership, they are not ignored. Sibanye-
Stillwater engages with communities in
seeking resolutions.
• Lack of local procurement
opportunities – a major concern across
communities in South Africa. To address
this concern, the following activities will
be undertaken in 2019, which are part of
the implementation of the Enterprise and
Sustainable Development Strategy:
– Small, medium and micro enterprise
(SMME) workshops to help capacitate
local SMMEs and co-operatives, and to
provide information on procurement
opportunities at Sibanye-Stillwater in
collaboration with the Local Economic
Development Department of Rand West
City Municipality, Gauteng Enterprise
Propeller, Small Enterprise Finance Agency
and Phakamani Impact Capital
– Local procurement open days provide
information to SMMEs who will also
benefit directly from the services of the
enterprise and supplier development
(ESD) centres, which will be established in
all our operating areas in 2019
For further detail, see Stakeholder engagement
on page 56 of this report
STAKEHOLDER ENGAGEMENT CONTEXT
• Unstable community relationships: impact of historically poor relationship
with the mining industry
• Lack of accountability by local government: service delivery issues
• Legacy issues: unfulfilled and unrealistic expectations, greater discontent
and impatience
• High rate of unemployment – highly literate but unemployed youth
STAKEHOLDER PERCEPTIONS
In our engagement with communities around our gold operations on the West
Rand and in the Free State, specifically to test our new Stakeholder Perception Index
engagement tool, we found historic misperceptions of a culture of non-engagement.
Specifically, there were misperceptions of malicious intent, particularly relating to
procurement, environmental issues, care and maintenance, and socio-economic
development programmes.
The study also highlighted gaps in the municipality-led Integrated Development Plan
(IDP) process, which is meant to determine and prioritise the needs of communities
that ultimately inform our social and labour plans (SLPs). There is also an apparent
misunderstanding of SLP funding and related responsibilities.
Communities are frustrated, believing that the mines do not respond to their
grievances, particularly in relation to CSI, procurement and employment.
Regular communication is critical but structured communication platforms have
not yet been established for Sibanye-Stillwater to proactively reach aggrieved
communities. Existing engagement forums have formal memoranda of
understanding but delivery is inconsistent and ineffective. Communities are reluctant
to accept a single engagement platform as organised labour does not have to
engage in this manner.
Solutions
Management has reviewed the outcome of the study and conducted feedback
sessions with the communities. It has been recommended that we:
• Focus on educating communities about our business and their rights
• Increase consultation, internally and externally, on SLPs and related responsibilities
• Assist communities to organise themselves so that engagement is constructive
• Close historical gaps in procurement and socio-economic development
• Support CSI and environmental programmes identified by local communities
• Create consistent and open channels of communication
• Implement effective conflict resolution/complaints mechanisms
• Refocus all social interventions on the social closure strategy (life after mining/
avoiding the creation of ghost towns)
We have improved governance of our internal processes to monitor and audit
stakeholder engagement, including the development of a heat map to track the
quality of relationships. A new issues resolution framework has been developed,
aimed at ensuring community and stakeholder concerns are resolved speedily. This
framework includes establishing grievance/complaints procedure so that communities
and other stakeholders are more easily able to contact Sibanye-Stillwater and report
their concerns. The latter was in response to criticism that we were not accessible. A
hotline has been set up to facilitate contact with Sibanye-Stillwater, and community
roadshows have been undertaken to explain procedures and processes implemented.
Sibanye-Stillwater Integrated Report 2018 123
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
COMMUNITY COMPLAINTS PROCEDURE
SOCIAL CLOSURE PLANNING
“To maintain
relationships
based on trust, it
is important that
we deliver on our
promises”
Our social closure framework and plans, in relation
to our socio-economic programmes, have been
finalised. Planning for the related stakeholder
engagement has begun. This framework and its
accompanying plans go beyond mining and are
more extensive than our SLPs, which are based on
compliance.
In developing these plans, we are collaborating
and strategising with municipalities, district and
local, to identify economic activities that will
endure post-mining. The plans, which will align
with regional IDPs, will be driven and owned by
the municipalities.
SOCIAL COMPACT PROGRAMME
IN RUSTENBURG
As an initial step, we have engaged with the
Rustenburg Local Municipality. An understanding
of their vision for the future will feed into our
regional social closure plans and into projects
to be included in our SLPs. A specialist service
provider was contracted to implement Phase 1
of a social compact programme in Rustenburg
where we particularly need to earn the trust
of our stakeholders. The programme included
engagement with various stakeholder groupings
to address their concerns and to work towards a
common vision for mutual benefit.
A new community complaints procedure has been
instituted. Its objective is to ensure that every issue
or complaint is captured in a register, resolved
and feedback provided to stakeholders within a
stipulated turnaround time. In this way, issues will
all be resolved before they develop into disputes.
An issues register has also been established to
track grievances, monitor related engagement,
prioritise issues raised and monitor time taken to
resolve. A timeline for responses is also included
to track regular, ongoing feedback. To maintain
relationships based on trust, it is important that we
deliver on our promises, and this framework will
help to ensure that we do so.
There is also greater co-operation internally
to address and resolve issues raised, such as
employment and procurement opportunities.
A community immersion programme involving
the executive and senior management of Sibanye-
Stillwater aimed to promote understanding of
the state of the communities around our mining
operations and accompanying alternative economic
activities in the Rand West City Local Municipality.
Senior management visited communities residing
in Glenharvie (mainly our employees), Venterspost,
Simunye, Bekkersdal and Mohlakeng, guided by
people who are familiar with the areas. The visit
included engagement with key community leaders
and interaction with project beneficiaries of the
social development projects.
Subsequent to the immersion, some senior
managers and departments pledged the
following donations:
• Food and vegetable seedlings for an orphanage
in Simunye
• Prefabricated recreational/office structures at
a centre for elderly people in Simunye and a
community-based organisation in Bekkersdal
• Vegetable seedlings and perimeter fencing at
the youth agricultural project in Simunye
• Waste recycling bins for a woman-led project
in Simunye
• Possible procurement opportunities for
community business structures and for the SLP
projects supplying garments and fresh produce
• Community leadership development training for
community leaders at the Gordon Institute of
Business Science
• CCTV surveillance system troubleshooting at a
shelter for abused women
124
Sibanye-Stillwater Integrated Report 2018
We sponsor scholar patrols at local schools in Rustenburg, South Africa, to ensure that children are safe
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION BOKAMOSO BA RONA AGRICULTURAL-INDUSTRIAL INITIATIVE
The Bokamoso Ba Rona initiative is a unique, collaborative, multi-stakeholder approach to
promoting sustainable economic activity through the development of a large-scale agriculture
and bio-energy hub in areas of the greater West Rand District Municipality. Currently, the local
economy depends predominantly on mining and there is a need to diversify economic activity. To
this end, Sibanye-Stillwater has contributed 30,000ha of land, which is a substantial contribution
to the sustainability of the local economy beyond mining, and an initiative that has been
embraced and adopted by government.
This extensive regional project is part of the West Rand District Municipality’s Accelerator Programme
aimed at promoting economic activity and ensuring the district’s economic viability.
The aims of the Bokamoso Ba Rona initiative are to:
• facilitate creation of a sustainable post-mining economy
• promote employment by emphasising labour-intensive opportunities with focus on agriculture
• accelerate transformation by creating opportunities and providing ongoing development and
training for local communities
• facilitate comprehensive, sustainable local socio-economic development
On 12 October 2018, we participated in a workshop to determine the level of interest in establishing
the Bokamoso Ba Rona agricultural-industrial activities in areas of the West Rand district surrounding
Sibanye-Stillwater mining operations, and to learn about the potential value propositions, capabilities
and modalities of involvement that interested stakeholders envisaged.
Responses indicated keen interest in pursuing agricultural ventures and, considering prior experiences
with agricultural-industrial initiatives, the need to pursue a structured approach was identified.
It was therefore decided to establish a strategically planned and enabling framework for a
sustainable programme that would serve the socio-economic development requirements of the
district. It is particularly important to establish an effective agricultural-industrial value chain with
planned related activities to ensure availability of critical resources and support structures, and to
facilitate finance and access to markets.
A suitably qualified and experienced programme manager will provide strategic leadership, with
oversight by the principals responsible for leading structured processes, to secure participation by the
wide range of role players required to give effect to the programme’s strategic scope. Support will
also be provided to SMMEs on delivering in line with the broader strategy, and on producing to the
required quality and quantity. Existing smaller agricultural projects will feed into this larger project.
This initiative is in the planning stages with implementation still some way off. Given the complexity
and scope of this ground-breaking initiative, there will be significant challenges to overcome. As
the debates on land reform have highlighted, successful commercial agricultural-industrial ventures
depend on far more than just access to land. The commitment and co-operation and alignment of
the partners – business, local and national government, and the investment community – are vital.
A memorandum of understanding has been entered into with the partners, which include the West
Rand Development Agency, the Gauteng Infrastructure Financing Agency and the Far West Rand
Dolomitic Water Association. Other stakeholders include the Public Investment Corporation, the
Department of Planning, Monitoring and Evaluation, the Merafong City Local Municipality and the
Rand West City Local Municipality.
For more information on this programme, visit www.sibanyestillwater.com
Beneficiaries of the REAP WHAT YOU
SOW project grow fresh produce
that generates a sustainable income
Community members working in
REAP WHAT YOU SOW, close to
the SA gold operations, benefit
from the co-operative project
Sibanye-Stillwater Integrated Report 2018 125
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
“Internal
governance of
SLPs is undertaken
through forums
designed to monitor
and evaluate
implementation”
Our social and labour plan funds
an award-winning piggery – a
community project close to the SA
PGM operations
A piggery generates a sustainable
income in North West Province
126
Sibanye-Stillwater Integrated Report 2018
MINING CHARTER AND
SOCIAL AND LABOUR PLANS
The latest amendment of the Mining Charter
was released in September 2018 and the
accompanying implementation guidelines on
19 December 2018.
Before work begins on its implementation on
1 March 2019, there will be a series of internal
workshops to promote a better understanding of
the requirements and to identify gaps.
The following salient points apply to our operations:
• Existing mining right holders, licence and permit
holders must implement the Mining Charter
2018 from 1 March 2019
• Before 1 March 2019, existing right holders,
licence and permit holders must maintain
compliance with the requirements of the Mining
Charter 2010
• The first annual report on the Mining Charter
2018 must be submitted to the Department of
Mineral Resources on or before 31 March 2020
• Although our socio-economic development
focus has moved beyond SLPs, they are
nevertheless important, especially in terms of
regulatory compliance.
For a summary of our SLP projects and their
impact, refer to www.sibanyestillwater.com
SLP STATUS
• Driefontein and Kloof: Following
submission of the SLPs for the five-year
period 2017-2021 to the Department of
Mineral Resources, requested changes were
made and plans were resubmitted. We await
final approval.
• Beatrix: The SLP for 2017-2021 has been
approved and implementation is underway.
• Burnstone: The SLP for 2017-2021 has
been submitted to the Department of
Mineral Resources and we await approval. To
align the SLP’s local economic development
(LED) programme with the Dipaleseng Local
Municipality’s IDP, agriculture was prioritised
to address food security.
• Cooke: Under care and maintenance,
expenditure for SLPs has been stopped.
• Rustenburg operations: The SLP for
2016-2020 has been approved and
implementation is underway.
• Kroondal: In terms of the current SLP
(2016-2020), the LED project backlog is
being addressed and implemented by Anglo
American Platinum as per the pooling and
sharing agreement with Sibanye-Stillwater.
The project backlog reported to the Department of
Mineral Resources for the Cooke and Kroondal SLPs
is expected to be completed by the end of 2019.
We plan to implement a data system to better
manage and monitor our performance. This
will enhance reporting on our performance and
compliance, which is important as our mining rights
depend on this. Internally, there is a gap in our
understanding of obligations and responsibilities in
terms of our SLPs. Training workshops, which began
in January 2019, will be conducted across the SA
operations to align understanding of the regulatory
environment and internal reporting, to build capacity
and to ensure that we deliver and comply in terms of
our commitments and regulations. Organised labour
will participate in these workshops.
Mining for non-miners training was conducted
for Rand West City Local Municipality LED officials
as well as members of the mayoral council
responsible for economic development and
planning, and corporate support services in 2018.
Sibanye-Stillwater also conducted this course for
portfolio heads and officials of the Rand West City
and Merafong City local municipalities.
GOVERNANCE
Internal governance of SLPs is undertaken
through forums designed to monitor and evaluate
implementation and Mining Charter obligations
although this is not required by law. Meetings
are convened quarterly with management and
organised labour. In 2018, the gold operations
held three official SLP forum meetings. At Kloof, a
number of additional engagements were aimed at
resolving disagreements about SLP targets. At the
Rustenburg and Kroondal operations, SLP forum
structures were set up in 2018.
Training workshops will be conducted in early
2019 to build capacity across the Group with focus
on recruitment and skills development.
Sibanye-Stillwater has also initiated community
forums to encourage constructive dialogue and to
keep abreast of the impacts of the business and
communities. In the Merafong area, close to the
gold operations, three community forums were
held in 2018.
In addition to community training provided
on agriculture, leadership and enterprise
development, Sibanye-Stillwater has extended
Care for iMali to communities (see fact sheet
at www.sibanyestillwater.com). Community
training on alternative economic skills also covers
paraplegic rehabilitation, offered to former and
current employees, and portable skills training
(such as welding, plumbing, bricklaying, sewing
and carpentry) by the Sibanye-Stillwater Academy
in line with SLP targets.
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA operations: Socio-economic development expenditure (R million)
2018
22017
22016
22015
22014
Total
Gold
18
2.6
PGM
15.4
Total
Gold
PGM
Total
Gold
PGM
Gold
Gold
24
13
11
59
47
12
27
24
68.6
51.4
17.2
532
340
193
393
321
72
384
353
Local economic development
Human resource development
Communities
Employees
Employee housing and nutrition 1
Health
Education
489.5
772
10
305
594
10
13.7
13.7
184
178
0
0
0
3
3
0
586
425
161
181
181
3
3
0
8
0
0
0
2
4
4
4
4
0.4
0.4
15
656
12
569
0
0
0
0
3
197
649
6
62
1
14
5
10
10
1
87
691
1,052
Sport, conservation and environment
0.345
0.345
Donations, community development
and charitable gifts
2.7
2.3
0.4
10
Total
1, 374
979
395
1,158
791.5
366.5
1 Expenditure is reported inclusive of value-added tax (VAT) as no VAT is claimed in terms of the relevant Act
2 Previously reported human resource development figures included community and employees
SA operations: Enterprise development (R million)
2018
2017
Total
Gold
PGM
Total
Gold
PGM
11
7
4
1
0.5
0.5
COMMUNITY TRUSTS
Several trusts are in place at present. Some are
community trusts and others are empowerment
trusts. We are endeavouring to ensure that these
trusts work while we attempt to combine and
consolidate them.
We plan to establish a Group trust early in
2019 into which some of the trusts with similar
objectives will be consolidated as a single trust that
will implement the company’s CSI programmes.
It is envisaged that a foundation will be established
to focus on all the social closure programmes
designed to transcend the end of life of mine.
CORPORATE SOCIAL INVESTMENT
Management of CSI activities at our SA operations
is being streamlined to ensure that it is focused
and optimises benefits for beneficiaries.
Our policy on donations and CSI was amended in
2018, informed by financial constraints and the
need to make an impact in focus areas. Instead
of an ad hoc approach, CSI interventions will be
funded over a fixed period, from two to three
years, depending on the specific focus area.
In the West Wits region, we are supporting three
homes for elderly and disabled people with an
investment of R1.2 million in monthly food parcels
over two and half years while providing the same
people with skills to cultivate self-sustainable
food gardens for their own consumption and to
generate an income.
Our focus in Rustenburg is on supporting early
learning development centres in partnership
with other role players. To date, we have
conducted training for caregivers and managers
of the selected centres. Focus in 2019 will be
infrastructure upgrades and the provision of
learning material.
We are engaging with stakeholders to determine
focus areas in the Free State.
HUMAN RIGHTS
Sibanye-Stillwater conducts
its business in line with
national legislation,
including the Constitution
and the Labour Relations
Act, as well as the
International Labour
Organization.
For the impact of illegal
mining on communities,
see the fact sheet:
Combatting illegal mining
at the SA operations.
SA operations: Corporate social investment in 2018 (R)1
Year
2018
2017
Total
Gold
26,498,336
26,459,175
PGM
39,161
15,764,552
13,789,367
1,975,185
1 Corporate social investment already included in socio-economic development table above
Sibanye-Stillwater Integrated Report 2018 127
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
“An intensified
programme
to unlock
opportunities for
local suppliers is
being rolled out”
PROCUREMENT AND ENTERPRISE
DEVELOPMENT
Participation by local community businesses in
our organisation is one way of contributing to the
economic development of communities around
our mining operations. Local procurement was
a major cause of strained relationships between
Sibanye-Stillwater and local communities in 2018.
A trust-building workshop with local businesses
in Rustenburg addressed this by aiming to repair
relationships through the transparent sharing of
information about what we buy, opportunities
available, our processes, and funding assistance
as well as enterprise and supplier development
programmes for local communities.
An intensified programme to unlock opportunities
for local suppliers is being rolled out with focus
on ring-fenced commodities and unbundling of
opportunities on contracts with large suppliers.
Procuring services from local suppliers remains a
challenge. Some of the issues are lack of relevant
mining skills, pricing and contract deliveries. We have
employed Phakamani, an enterprise development
SA operations: Discretionary BEE procurement 1
service provider to assist us in coaching and
developing the skills required to support sustainable
local suppliers. Participation by local suppliers
therefore remains relatively low and legislated targets
have been set to triple current spend.
Our enterprise and supplier development
strategy includes support from financial services
provider Phakamani Capital, as well as proactively
identifying SMMEs and potential joint ventures,
and establishing business centres across our
operations. In 2018, 80 loans were approved
to the value of R12.9 million for the benefit of
44 SMMEs, including 42 youth and 25 female
entrepreneurs, and 593 jobs sustained for the
duration of project and/or contract. As part of the
interaction with Phakamani, 54 companies were
mentored and trained.
A new procurement system called “Coupa” will
be rolled out to the SA operations in 2019. This
tool will enable effective interactions with our
suppliers and make our procurement process more
accessible and visible to our communities , and thus
encourage involvement.
Capital goods
target (40%)
Consumables
target (50%)
Services
target (70%)
Gold
Beatrix
Cooke 1, 2 and 3
Cooke 4
Driefontein
Kloof
PGM
Kroondal
Rustenburg
Total
78%
49%
0%
73%
83%
83%
88%
82%
84%
30%
66%
81%
84%
87%
81%
81%
61%
80%
44%
77%
70%
81%
84%
76%
1 The Mining Charter’s procurement targets apply to procurement that “excludes non-discretionary
procurement expenditure” – this excludes expenditure that cannot be influenced, such as procurement from
the public sector and state enterprises. Procurement targets therefore apply to discretionary expenditure
over which Sibanye-Stillwater has influence.
SA operations: Total empowerment spend (2018)
Black-owned (historically disadvantaged South African) businesses
We sponsor conservation
projects that maintain a pristine
environment around our US PGM
operations in Montana
Male-owned
Women-owned
Total
R million
9,005
1,874
10,879
% of total
spend
65.01
13.53
78.54
128
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION US PGM operations
Throughout the course of 2018, the executive
team at our US operations met with Montana’s
federal delegation, including senators Jon Tester
and Steve Daines, and representative Greg
Gianforte, as well as Montana’s Governor Steve
Bullock and key senior personnel at the Montana
Department of Environmental Quality and Region
8 of the US Environmental Protection Agency.
The meetings introduced our leadership team and
informed these important stakeholders about the
organisation, providing insight on a number of
environmental issues, including the delegation’s
views on I-186. For further information on I-186,
refer to page 140 of this report
We created a Community Giving Team in line with
our charitable policy, which highlights our aim
to support communities directly adjacent to our
mines and processing facilities. The policy prioritises
initiatives that support rural emergency and
healthcare services, education (especially science,
technology, engineering and mathematics), local
community improvement activities and environmental
stewardship. In 2018, the Community Giving Team
supported over 100 organisations, including a
US$25,000 donation to the Forests in Focus initiative,
which addresses forest health and wildland fire risk
across Montana. Since its inception, Forests in Focus
has supported the treatment of more than 300,000
acres of forest, the production of nearly 190 million
feet of board timber and the retention of 3,000 jobs
in the forest products sector.
Through this initiative, the Montana Department of
Natural Resources and Conservation also increased
Montana’s stake in Forest Plan revisions and federal
projects through the National Environmental Policy
Act process, and supported local governments and
collaborative groups in their efforts to effectively
engage with the US Forest Service on projects
important to their constituents and communities.
This “all-lands, all-hands” collaborative approach
developed in Montana informed Governor Bullock’s
National Forest and Rangeland Management
Initiative of the Western Governors Association,
culminating in the release of bipartisan
administrative and legislative recommendations
to advance shared learning and best practices for
forest restoration and management across the
western US.
In addition, the Community Giving Team supported
a number of local community organisations in
2018, including Montana Shakespeare in the Parks,
which presents live theatre in rural communities,
as well as Eagle Mount, a local programme that
provides skiing and horseback riding opportunities
to disabled children and adults, and the Yellowstone
Big Horn Research Association, a local field research
site dedicated to training area educators in geology.
GOOD NEIGHBOR AGREEMENT
More than 15 years ago, the then Stillwater
Mining Company signed the Good Neighbor
Agreement (GNA), together with three local
stakeholder organisations: the Northern Plains
Resource Council, the Stillwater Protective
Association and the Cottonwood Resource
Council.
Unique within the mining industry, the GNA
provides an innovative framework for the
protection of the natural environment while
encouraging responsible economic development.
It legally binds us to certain commitments and
holds us to a higher standard than that required
by federal and state regulatory processes.
Our commitments include transparent and
productive interaction with all affected
stakeholders, using the GNA as a vehicle for
dispute resolution and positive stakeholder
engagement.
For further information, see the fact sheet,
Working together: the Good Neighbor Agreement
US PGM operations: Philanthropic/social
activities and related expenditure (US$)
May-
December
2017
2018
Community projects (42%)
162,600
60,050
Youth activities (13%)
50,900
53,125
Education (24%)
94,130
37,760
Emergency services (12%)
44,700
28,750
Cultural activities (9%)
35,500
15,100
Total
387,830
194,785
FUTURE FOCUS
SA operations
We will focus on education infrastructure, economic
diversification through agriculture, and CSI in 2019
to facilitate and catalyse alternative economic
activities aimed at skills development, job creation
and food security – and thus ensure meaningful
social closure beyond mining.
US PGM operations
In 2019, our US operations will continue to focus
on meaningful contributions that will enhance the
well-being of local communities, assist local first-
responders, and provide education opportunities to
local students.
Sibanye-Stillwater Integrated Report 2018 129
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT
APPROACH
Our environmental management team, guided
by internationally recognised principles, including
ISO 14001:2015, the International Council on
Mining and Metals (ICMM) and the United Nations
Global Compact, focuses on the execution of
environmental initiatives aligned with Sibanye-
Stillwater’s strategic objectives, vision and purpose.
Mechanisms to give effect to these principles are
embedded in our systems and approaches to the
environmental challenges we face. Environmental
challenges are considered in our core business and
compliance risk management plans. We proactively
address compliance while simultaneously
promoting greater environmental responsibility
leveraging technologies.
We have integrated and aligned environmental
functions across our SA operations in terms of our
Vision 2020 environmental management strategy
illustrated below. In-depth alignment with the US
PGM operations, although initiated, will conclude in
2019. The five pillars and focus areas of our Vision
2020 create value for all stakeholders. The strategy
and structure of our environmental department,
and the setting of strategic goals and objectives,
and associated performance measures for 2018 and
beyond, are premised on our Vision 2020.
“Environmental
challenges are
considered in
our core business
and compliance
risk management
plans”
PILLARS OF
VISION 2020
Verifiable
compliance
Cost and risk
management
Awareness,
stewardship and
communication
• Understanding and
implementation
of, and verifiable
compliance with,
internal and
external regulations
• Meeting
environmental
standards and
challenging where
appropriate
• Effective use of
technology and
innovation to
deliver environmental
purpose
• Delivering
administrative
and contract
management
efficiencies
• Optimal use of
water resources
and deployment of
water conservation
and demand
management
practices
• Aligning and
adhering to
internationally
recognised policies,
guidelines and
principles to
protect and grow
environmental
reputation
• Influencing legislation
and policy-making
• Engaging in
research, producing
publications and
contributing to
knowledge
130
Sibanye-Stillwater Integrated Report 2018
Environmental
footprint
management
• Accurate
determination and
reporting of closure
obligations and
commitments
• Responsible concurrent
rehabilitation planning
and execution
• Effective socio-
economic closure
planning
• Designing and
implementing
strategies to reduce
carbon footprint
and improve energy
efficiency
• Responsible use and
management of water
resources
• Proactive management
of environmental risks
to secure licence to
operate
• Proactive management
of land, air and waste
Community
engagement and
buy-in
• Engagement with
key stakeholders and
communities
• Raising awareness of
environmental issues
to minimise impact
on the environment
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION The environmental management system (EMS) adopted by Sibanye-
Stillwater is broadly aligned with the principles of the international
environmental management standard, ISO 14001:2015.
TARGETS
SA operations
In line with the strategic goal to strengthen Sibanye-Stillwater’s
position as a leading international precious metals mining company,
we have begun working towards renewing and enhancing our ISO
14001-compliance across the Group. ISO 14001 certification is
expected by 2022 and a comprehensive gap analysis at all operations
is planned for 2019.
US AND SA OPERATIONS: SYSTEMS SUPPORTING
ENVIRONMENTAL MANAGEMENT
We use technologies for proactive environmental management to
make informed decisions for the benefit of all stakeholders:
• Pivot: system to capture and manage environmental incidents
and complaints
• Syncromine: an audit system for the management of
environmental non-conformances – the environmental module
has been customised to schedule audits at planned work
places based on these standard environmental checklists
• Qlikview: a data analysis tool for water flow and air quality
compliance to enable trend analysis and decision-making
• Continuous emissions monitoring system (CEMS): online
hourly monitoring of SO2 emissions
• ARC GIS: platform where environmental water and air quality
data is stored in the system, tools to determine compliance
• Zednet: automated system to monitor water flow,
consumption, quality and critical reservoir levels with a view to
integrating all SA operations to identify anomalies and critical
trigger parameters, thereby minimising water losses and risks
against regulatory licences as well as provides tools to do
trend analysis
IN LINE WITH SUSTAINABLE DEVELOPMENT GOALS
We continue to make progress in aligning our environmental
management strategy with that of the United Nations (UN)
Sustainable Development Goals (SDGs), focusing particularly on:
To reduce/achieve by year-end 2018
• Scope 1 and 2 carbon emissions by 27.3% by 2025, equivalent
to an average annual decrease of 2.1%
• Level 3 incidents by 20% year-on-year
• Zero level 4 and higher incidents
• Overall purchased water consumption by 15% year-on-year
Achieved by year-end 2018:
• 3.9% average annual reduction in Scope 1 and 2 carbon
emissions (on track to meet and exceed target)
• 58% reduction in level 3 environmental incidents
• Zero level 4 and above environmental incidents
• 3% decrease in the consumption of purchased water
In addition, the following was achieved:
• At the SA operations, an energy intensity of 0.52 GJ per tonne
of ore processed (2017: 0.60)
• Overall improvement of 3% in discharge water quality
compliance year-on-year with overall average of 73.7%
Note: The energy intensity factor takes into consideration purchased
electricity and direct fuels used, which includes petrol, diesel, liquid
petroleum gas, acetylene, coal and paraffin.
US PGM operations
Achieved in 2018
• Completed written long-term environmental management
strategies for all three US sites
• Secured air permit modifications to enable expansion efforts at
the East Boulder mine and Columbus Metallurgical Complex
• Received various permit approvals for Stillwater
expansion efforts
• Implemented traffic management procedures at the Stillwater
mine to ensure traffic counts remain in accordance with the
Good Neighbor Agreement of 110 vehicles per day (currently
90-100 vehicles per day)
• Began closure efforts for original tailings storage facility at the
Stillwater mine
In addition to monitoring performance and ensuring compliance with
the relevant legislation in each jurisdiction, and inspections by relevant
government departments and agencies, environmental performance
reports are submitted to executive management, with ultimate
oversight by the Social and Ethics Committee and the Board. Refer to
the Social and Ethics Committee’s report on page 167 and regulatory
compliance in Corporate governance from page 153
Sibanye-Stillwater Integrated Report 2018 131
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
In 2018, the closure liability for the SA operations
was reduced through concurrent rehabilitation
and transfer of assets following the DRDGOLD
transaction.
We have encouraged the South African
government to extend the implementation
date for the proposed Financial Provisioning
(FP) Regulations to 20 February 2020, which,
among other proposals, includes the potentially
mandatory inclusion of 15% value-added tax (VAT)
in all closure provisions.
A preliminary costing model has been developed
to determine the potential impact of the proposed
legislation, and all its aspects on our operations
and Sibanye-Stillwater at large, and for only the
15% VAT component of the new FP Regulations.
Our total closure provisions could increase by as
much as just over R1 billion. The impact of, among
others, the inclusion of latent and residual liabilities
are still to be determined, as the proposed FP
Regulations are not clear on this aspect.
Refer to page 150 for details
US PGM operations
Cost savings and efficiency initiatives include:
• Maximising tailings backfill volumes to extend
the operating life of our surface tailings storage
facilities
• Minimising underground water inflows to
reduce the volume of water treated and
managed
• Concurrent reclamation to reduce long-term
closure liability
• Initiated closure of the original tailings storage
facility at the Stillwater mine to reduce long-
term closure liability
• Ongoing water-treatment optimisation to
improve treatment efficiency
• LED lighting changes to improve lighting
efficiency and reduce costs
• New product reviews to reduce hazardous waste
generation and related costs
PERFORMANCE
CDP SCORE
The CDP, formerly the Carbon Disclosure
Project, which runs the global disclosure
system that enables companies, cities, states
and regions to measure and manage their
environmental impacts, has rated Sibanye-
Stillwater as A- for the second consecutive
year. This is within the leadership band and
higher than the global metals and mining
sector average of C, and higher than the
Africa regional average of B.
A significant change in 2018 was the
inclusion of Stillwater in our submission
and the incorporation by the CDP of
recommendations made by the Task Force
on Climate-Related Financial Disclosures in
their questionnaire, which included multi-
disciplinary categories, governance, targets,
energy, risks and opportunities.
COST SAVINGS
Sibanye-Stillwater’s environmental function has
firmly embraced the challenge set by the Board and
Executive Committee to effectively reduce costs
through proactive management of environmental
incidents, water conservation, carbon footprint
management and reducing our reliance on Rand
Water at the SA operations. Several cost-savings
initiatives have been identified while others remain
work-in-progress. Those identified and implemented
do not compromise on legal compliance or our
ability to deliver an efficient service to internal and
external stakeholders.
SA gold and PGM operations
Our cost-savings initiatives include:
• Improved efficiencies in contract management
including checking and verification of invoicing
for goods and services delivered
• Reducing reliance on Rand Water through the
treatment of water in compliance with the
water use licence
• Roll-out of water conservation and water
demand management initiatives including leak
detection and repairs
• Engagement with the Department of Water
and Sanitation to correct water resource
management strategy charges
“Sibanye-
Stillwater’s
environmental
function has
firmly embraced
the challenge
set by the Board
and Executive
Committee to
effectively reduce
costs”
Water sampling close to our
Stillwater operations in the US
132
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION WATER MANAGEMENT
Sibanye-Stillwater acknowledges that water is a critical resource, and considers an integrated approach to the management of its water footprint
and its water systems infrastructure as a key component of its business strategy. Efficient water management is vital in terms of preservation,
consumption and cost. We are therefore committed to the responsible use of water in a manner that is sustainable for production and host
communities. We respect the environment, our host communities and employees with whom we share water, and strive to improve and ensure
the safety and security of this precious resource.
Our water conservation and water demand strategy consists of various components:
• using alternative available underground water sources to replace purchased water in line with the conditions of our water use licences
• identifying and reducing wastage of water through the implementation of improved metering, water balance management, leak detection
and repair initiatives
Water use
2018
US PGM
operations
Group
Total
SA operations
Total
PGM
Gold
Group
Total
2017
US
operations1
2016
SA operations
SA operations
PGM
8 PGM
Gold
Total
PGM
Gold
Total water withdrawn 2 (ML)
125,844
4,073 121,771
15,992 105,779
125,800
2,447 8 14,496 108,857 111,693
4,376 107,317
Water discharged 3 (ML)
Water used 4 (ML)
Total water purchased 5 (ML)
Water purchased from water
services authorities (%)
Volumes treated 6 (Mt)
Intensity 7 (kL/tonne treated)
70,791
55,773
20,278
36
41.37
1.35
3,580
67,211
0
67,211
1,213
54,560
15,992
38,568
120.66
20,157
9,029
11,128
10
3.5
37
56
29
37.87
20.57
17.30
0.35
1.44
0.78
2.23
70,586
55,213
21,036
38
41.83
1.32
1 For eight months from May to December 2017
2 Total water withdrawn: water abstracted from groundwater sources and total purchased
3 Water discharged into environment at licensed discharge points
4 Water used: Total withdrawn minus water discharged
1,714
0
68,872
65,833
0
65,833
733
14,496
39,984
45,860
4,376
41,484
94
9,040
11,902
15,027
2,674
12,353
13
1.9
62
30
33
20.90
19.03
26.80
0.43
0.69
2.10
1.71
61
6.60
0.66
30
20.20
2.05
5 Total water purchased: potable water purchased and waste water purchased at Rustenburg operations
6 Volumes treated: Dry tonnes processed in Sibanye-Stillwater metallurgical plants and concentrators
7 Intensity: Water used/tonne treated
8 SA PGM figures restated to include purchased water at compressors, sewage works and villages, and a portion of groundwater abstraction, which
was previously under-estimated
WATER USE MONITORING
At our SA operations, the Zednet automated
water monitoring system was successfully
extended to include all SA operations. More than
300 potable water meters are now being used
to monitor water consumption continuously
and to identify the location of water leaks. The
monitoring system is also used to monitor water
quality and critical reservoir levels.
The strategy to monitor and manage our water
footprint is aligned with our strategy to be more
independent of municipal water in order to improve
our water security and reduce our dependence on
external suppliers of potable water.
While Sibanye-Stillwater advances its critical
water independence strategy, water cost saving
initiatives continue.
WATER COST-SAVING INITIATIVES
In 2018, R245 million (2017: R231 million) was
spent on the purchase of potable water, which
was 4% less than it was in 2017. The cost of
purchased water increased by 6.2% due to an
average 10.3% annual tariff increase.
Water sampling close to our Rustenburg PGM operations in South Africa
Sibanye-Stillwater Integrated Report 2018 133
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
POTABLE WATER CONSERVATION AND
WATER DEMAND MANAGEMENT
A key success factor to achieve independence from external water
suppliers, is to reduce water demand by minimising leakage and losses.
The table that follows compares 2018 potable water consumption
with that of previous years and indicates the savings achieved.
Potable water purchased (ML)
Gold operations
Beatrix
Cooke
Driefontein
Kloof
2018
2,863
1,790
1,603
4,872
2017
2,881
2,123
2,210
4,688
20161
2,758
2,692
1,657
5,247
2015
3,201
4,112
1,726
5,755
Gold – Total
11,128
11,902
12,353
14,794
PGM operations 2
Kroondal
Rustenburg
PGM – Total
1,917
4,557
6,474
1,744
4,637
6,382
2,333
4,977
7,309
–
–
–
SA operations
17,602
18,284
19,663
14,794
1 Includes Kroondal and Rustenburg operations for the full year
2 SA PGM figures include purchased water at compressors, sewage
works, villages and a portion of groundwater abstraction, previously
under-estimated
The SA gold operations reduced water purchased by 774ML (7%)
despite the increase in the volume of water purchased for Kloof
– 3% more as a result of several pressure surges at the Libanon
supply point, causing increased leakage. This increase was offset
by substantial decreases in water volumes purchased at Cooke and
Driefontein. At Cooke, the decrease (333ML or 16% year-on-year)
reflects the success of initiatives to reduce water leakages and losses.
At Driefontein, a decrease of 607ML or 27% year on year reflects
stable production of potable water from the Driefontein water-
treatment facility and, to a lesser extent, the operational disruptions.
Consumption at the PGM operations increased by 1%, largely
attributed to the water purchased at the Kroondal operation (173ML
or 10% year on year) as a result of extremely dry conditions in the
final quarter of 2018, necessitating an increase in the volume of
potable water required to sustain production.
134
Sibanye-Stillwater Integrated Report 2018
Infrastructure at our Waterfall PGM concentrator plant in Rustenburg,
South Africa
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA OPERATIONS:
STRATEGIC WATER
PROJECTS
The appeal authority issued a decision on the appeal on
6 March 2019, which upholds EMC’s appeal and sets
the Department of Mineral Resources’ negative decision
aside and refers the matter back to the Department of
Mineral Resources for reconsideration.
In 2018, this plant: achieved the following:
• Cost savings of R7.2 million
• Produced 1,068ML of softened water
• Complied fully with SANS 241 water quality
We operate in complex surface water
catchment areas, which have numerous
water users, including the communities,
farmers, other industrial users and mining
houses. Although water resources are
monitored extensively, limited information
is available in terms of quantification of
residual and latent liabilities.
Project to quantify residual and
latent liabilities
The aims and objectives of the project to quantify
residual and latent liabilities are to:
• Quantify the potential liabilities associated with
our mining activities
• Provide recommendations for mitigation
• Align remediation approach (mitigation measures)
with regulators and other water stakeholders
The project will consider all catchments in which
we operate. Our SA gold operations, specifically the
Wonderfonteinspruit and Loopspruit catchments
have been prioritised as part of the study.
To date, findings of the assessed catchments have
indicated the following:
• The Upper Wonderfonteinspruit is seriously
impacted by numerous water users in the
catchment area. Management of discharge
qualities, through strict control of discharge water
treatment, remains a priority.
• The mid- and lower-Wonderfonteinspruit show
significant improvement in terms of water quality
despite upstream inputs from the affected upper
Wonderfonteinspruit. Discharge qualities from
Driefontein and Kloof have shown excellent
compliance and in-stream monitoring indicates
that water quality requirements have largely been
met. Management measures are expected to focus
on habitat improvement, which will be explored
further in the next phases of the project.
• The Loopspruit, which receives input from Kloof,
is in a good state in terms of water quality
with excellent overall discharge compliance.
Wetland areas and certain parameters will be
considered during the course of subsequent
phases of the study.
Cooke 4 shaft closure
Ezulwini Mining Company (EMC) appealed to the
Minister of Environmental Affairs (appeal authority)
against the Regional Manager: Mineral Regulation
for the Gauteng regional office of the Department
of Mineral Resources’ negative environmental
authorisation decision dated 30 April 2018. EMC’s
application to the Department of Mineral Resources
was for the decommissioning of the underground
mine workings and associated cessation of pumping
operations at Ezulwini mine, Gauteng, under
reference GP 30/5/1/2/2 (38) MR.
West Rand Trans-Caledon Tunnel Authority mine
drainage treatment facility
Successful operation of the dewatering and acid mine
drainage (AMD) treatment plant led to a drop in the
level of the Western Basin water table from 7.7m to
11.68m below the 18 winze decant point in 2018. In
total, 11 670ML of impacted AMD mine water was
treated, achieving 96.5% compliance to the directive
limits, and discharged into the Tweelopiesspruit.
Driefontein North Shaft potable water
treatment plant
In 2018, this plant achieved the following:
• Cost savings of R42.6 million
• Produced 3,493.5ML blended softened water
• Complied fully with SANS 241 water quality
Cooke 4 potable water treatment plant
The Ezulwini potable water treatment plant’s stable
operation enabled lower municipal potable water
consumption. The plant tested Crystalactor® technology
for the treatment of mine service water in the past year,
showing greater metal removal potential for application
at other sites.
Cooke underground closure planning
Alternative regional socio-economic solutions for the
long-term sustainable closure of Cooke’s underground
mining operations have been completed.
The most environmentally responsible and cost-effective,
sustainable closure solution for these operations
includes installation of four concrete plugs between
Harmony’s Doornkop mine and Cooke 1, followed by
natural rewatering of the mine workings. A closure plan,
with specialist studies in support of the closure strategy,
has been completed.
West Rand tailings retreatment potable water
pilot plant
A water treatment pilot plant is to be established at
Kloof 4 to reduce high salt load in service water, thereby
extending the life of the existing infrastructure and
facilitating maintenance savings of about R3 million.
Wastewater treatment works optimisation
All our wastewater treatment works at the SA
operations were reviewed to identify opportunities to
improve water discharge compliance and to reduce
operating costs. The review highlighted optimisation
opportunities across the SA operations, including the
conversation of the Kroondal wastewater treatment
works to a transfer station, leveraging the under-utilised
Waterval wastewater treatment works, which is running
below capacity.
We monitor our water resources
Sibanye-Stillwater Integrated Report 2018 135
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
US OPERATIONS:
WATER MANAGEMENT PROJECTS
During the year, the following specific water
management projects were advanced at the
US PGM operations:
Hertzler percolation ponds
As a result of the need for increased water
disposal capacity at the Stillwater mine, the
Hertzler percolation ponds were permitted
and constructed. These new percolation ponds
increase water disposal capacity by a minimum
of 1,000 gallons per minute (gpm). This treated
water exceeds drinking water standards and is
percolated into the groundwater system near
the Hertzler tailings storage facility to improve
the hydrologic balance.
Water treatment plant expansion
With ongoing expansion activities associated
with the Blitz Project, the water treatment
capacity at the Stillwater mine was increased
from approximately 1,250gpm to 3,000gpm.
This treatment plant expansion continues to
focus on biological denitrification.
Benbow injection well optimisation
The injection capacity of the existing Benbow
injection well was increased from 500gpm to
900gpm with the addition of new pipelines
and a booster pump. Prior to the upgrades,
an extensive hydrologic and engineering
evaluation was completed to ensure increasing
injection pressures would not compromise
the integrity of the well construction or
the injection formation. A study was also
completed to evaluate the possibility of
converting the Benbow potable well to an
injection well, if needed.
Clarifier thickener upgrades
At the East Boulder mine, we began installing
a new thickener tank in advance of the water
clarifier. With increasing mine water flows
and solids loading, the new thickener, in
combination with the clarifier, will allow the
mine to continue to meet targeted water
quality and discharge solids loading in the
mine water percolation.
“Efficient
and proper
management of US
PGM operations’
water resources
continues to be a
critical and focused
operational effort”
US PGM operations
Efficient and proper management of US PGM
operations’ water resources continues to be a
critical and focused operational effort. Due to the
nature of our rock associated with the J-M Reef,
neither acid-rock drainage nor metal mobility is
a concern. Our primary constituent of concern is
nitrogen that is introduced by blasting agents and
dissolved in the water flowing through the mines.
Given the pristine environment where our mines
are located, we focus on proper management of
the water following treatment.
First, we employ all reasonable efforts to limit the
volume of water encountered underground. Mine
water grouting programmes are instrumental in
limiting water inflows in our footwall laterals.
While driving a footwall lateral, the area in front
of the drive is constantly probed with drills to
evaluate rock conditions and major water sources.
Should a major water source be identified, the drill
hole is then used to grout and seal off the water
source and allow mining through that zone with
limited inflow.
Water encountered in the stoping (mining) blocks
must be managed through water treatment
and management systems. Limited grouting
occurs in these areas, because they are actively
mined in multiple cuts. This water generally
contains elevated nitrogen from the blasting
process. From the stopes, this water is brought to
surface to manage. Initially this water is recycled
and reused as make-up water in the mill and
tailings storage facilities, underground for drill
water, in equipment washbays; and for dust
control, among other uses. As a result of these
water recycling efforts, very little fresh water is
necessary for operations. Generally fresh water
use is associated with potable water needs,
including drinking and showering.
The balance of the mine water not recycled is
treated through our mixed-bed bio-reactors where
the nitrogen contained in the water is converted
to nitrogen gas in a biological process and released
to the atmosphere. These treatment plants remove
upwards of 90% of the nitrogen contained in
the water stream. As a result, the discharge of
remaining nitrogen in the water is consistently
15% to 30% of regulatory limits or lower.
Following treatment, the mine water is either
returned to groundwater through a combination
of percolation ponds or a groundwater injection
well or land-applied using agricultural pivots for
beneficial use.
We have a water plant close to our
SA gold operations
136
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION GENERAL RISKS
Through a robust risk management process at our SA operations, we have identified the following general environmental risks for which
action plans and mitigation strategies have been developed and are being implemented:
• Changes in legislation due to FP Regulations
• Preserving water in North West for sustained and continued operations
• Slow responses from regulators in respect of approving licences and amendments
• Regional water closure strategy and alignment of industry, community, local and national government among others
• Closure of Ezulwini and the ongoing legal battle to obtain regulatory approvals for this process
• Residual and latent liabilities
• Climate change and global warming
COMPLIANCE
SA gold and SA PGM operations
At our SA PGM operations, new water use licences were
issued for our Rustenburg and Kroondal operations. The
Rustenburg water use licence has been reviewed. We are
engaging with the regulator to align conditions where clarity
is required.
Although no new water use licences were issued for the SA
gold operations, we have had successful interactions with
the Department of Water and Sanitation about the water use
licence amendment applications submitted. While we continue
to engage with the regulator, we expect the amended water
use licences to be issued during the first half of 2019.
General authorisation for the reclamation and rehabilitation
of historically impacted wetlands at all Cooke operations
has been approved.
The third phase of the integrated water use licence
application for Burnstone is underway, including public
participation and submission of final specialist assessment
reports. The Department of Water and Sanitation visited the
site and did not find any serious concerns.
Average underground and effluent discharge compliance
improved by 3% across all operations with plans to address
compliance challenges.
South African legislation, primarily through the National
Water Act and supported by the National Environmental
Management Act, requires the management and protection
of the water resource, for all users. Legislation takes
into account all watercourses – rivers, drainage lines or
wetlands. Requirements for the licensing of activities
occurring within the legislated buffer areas of these
watercourses requires not only the registration of the
water use but also specialist assessments, monitoring,
management and mitigation measures to be implemented.
Within the SA operations, we influence the three major
catchment areas in which we operate – Crocodile West/
Limpopo (gold and PGM operations), Olifants (PGM
operations) and Vaal (gold operations) – in terms of direct
and indirect water quality and quantity contributions and
abstractions, changes in habitat and flow patterns as well as
associated changes in biological components.
Operation
Compliance (%)
Comment
2018
2017
Beatrix
Treated effluent
97
95 • Largely consistent results with
a slight improvement due to
management interventions
Burnstone
82
88 • Decrease in in-stream
Driefontein
Underground water
Driefontein
Treated effluent
Ezulwini
Underground water
Kloof
Combined
underground and
treated effluent
Cooke
Underground water
compliance due to non-mining
contributions in the catchment
following temporary stoppages
in the discharge
97
81 • Stricter operational control
focusing on contractor
management and reporting
has resulted in improved
reaction to areas of concern
91
62
86 • Stricter control in operational
aspects
64 • Outcome of partial closure
application as well as the
proposed amendments to
unrealistic water use licence
discharge limits are awaited
86
86 • Overall compliance has
remained consistent
• Amendments of unrealistic
licence conditions are being
processed by the Department
of Water and Sanitation
56
56 • Medium-term strategies for
the removal of mud from
surface and underground
dams has resulted in improved
compliance which will be
evident in 2019
Sibanye-Stillwater Integrated Report 2018 137
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
These influences are monitored using the
following techniques:
• Routine sampling and analyses of water quality,
including tracking of issues and management
measures to ensure compliance with licences and the
protection of other water users
• Monitoring biological indicators to determine spatial
and temporal trends in terms of the influences
exerted by mining-related activities (refer to
Biomonitoring of rivers fact sheet)
• Water quantity monitoring and analyses using water
and salt balances to determine improvements in
terms of efficiencies and cost-saving initiatives to
achieve water conservation and water demand
management targets
Over and above the river systems for which the
monitoring and management initiatives described above
are performed, numerous smaller systems, such as
drainage lines and wetlands are also managed by:
• Specialist wetland assessments to determine wetland
boundaries, health and management measures, and
monitor management measures
• Floodline delineations to determine watercourse
floodline boundaries, including drainage lines
SA operations: Biodiversity assessments
SA OPERATIONS: WETLANDS
IN REHABILITATION
In natural water systems, wetlands act as purifiers in freshwater systems. The
wetland’s natural ability to attenuate flows and reduce the concentration
of potentially harmful constituents can be enhanced in constructed wetland
systems to assist in water treatment.
Careful design is critical and, while wetlands are less intensive in terms of resource and
maintenance, as opposed to conventional chemical and mechanical treatment technologies,
they require maintenance.
The ability to replicate the benefits of wetlands through the artificially constructed wetlands
has resulted in the implementation of several wetland initiatives. The aims of which are to
re-establish the once functional wetland systems that have been historically impacted.
Increasingly applications of these passive treatment solutions are becoming more popular
in respect of water quality management due to the comparatively low maintenance and
operational costs associated with these systems. They also continue to perform beyond the
life of an operation.
Illegal mining also has an impact on the environment (refer to the fact sheet at
www.sibanyestillwater.com).
Biodiversity assessments have been conducted at Driefontein, Kloof and Burnstone. Similar assessments are being conducted at Beatrix, Rand
Uranium and Ezulwini, as well as an update at Burnstone. The following species of interest, as per the International Union for Conservation of
Nature (IUCN) and South African National Biodiversity Institute (SANBI) Red List data, have been found, although this is not a comprehensive
list of all species in the respective areas.
IUCN/SANBI
Red List status
No. of species
observed
Species observed
• Eupodotis caerulescens (Blue Korhaan) 1, 3
• Mirafra cheniana (Melodius Lark) 2
• Adromischus umbraticola subsp umbraticola (Cliff Andromischus) 2
• Panthera pardus (Leopard) 2
• Miniopterus schreibersii (Natal Clinging Bat) 2
Near
threatened
12
• Rhinolophus clivosus (Geoffroy’s Horseshoe Bat) 2
• Rhinolophus darlingi (Darling’s Horseshoe Bat) 2
• Myoti tricolor (Temminck’s Hairy Bat) 2
• Vulpes chama (Cape Fox) 3
• Leptailurus serval (Serval) 3
• Atelerix frontalis (Southern African Hedgehog) 3
• Adromischcus umbraticula 3
• Boophane disticha (Gifbol) 2, 3
• Hypoxis hemerocallidea (African Potato) 2, 3
• Rhinolophus blasii (Blasius’s Horseshoe Bat) 2
• Tyto capensis (African Grass Owl) 3
• Opistophthalmus pugnax (Burrowing Scorpion) 2
• Circus ranivorus (African Marsh Harrier) 3
Declining
Vulnerable
Protected
Endangered
2
2
1
1
1 Burnstone 2 Driefontein 3 Kloof
138
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA OPERATIONS: IDENTIFYING A NEW SPECIES
A potentially new distinct fish species
was found for the first time within the
Leeuspruit (Upper Vaal Catchment),
downstream of Kloof, during the
biomonitoring low-flow assessment in 2018.
The fish has been classified as Enteromius pallidus
(Goldie Barb) although recent literature indicates
that, due to the location of this species, it is likely
to represent a completely unique species.
Further monitoring and specific sampling will be
performed to establish another data set with a
view to confirming that this is a new species and
to assist in the formulation of a management
programme to protect the fish.
Cottonwood Resource Council to develop
a stakeholder-driven, independent water
monitoring and assurance plan aligning
with the goals and objectives of the
Good Neighbor Agreement. This adaptive
management plan has been developed to
adjust as conditions change, knowledge
improves, regulatory criteria is modified or
as targets change.
• Defining tailings management best
available technology – In collaboration
with our stakeholders, including the
Montana Department of Environmental
Quality, the US Forest Service, and the
Good Neighbors, and with support of an
internationally recognised independent
review panel, we have been defining
site-specific best available technology for
future storage of our tailings materials.
This includes a comparison of filtered
tailings, thickened tailings, paste tailings,
co-mingled tailings, and conventional
tailings slurry.
• Closure of the Stillwater mine tailings
storage facility – During 2018, we
initiated closure of the original tailing
storage facility at Stillwater. These
activities included design level cone-
penetration testing and initial placement
of geosynthetics and a waste rock cap
placement in the southwest corner of the
facility. Closing and dewatering the facility
is estimated to take about four years.
Enteromius pallidus (Goldie Barb) has
been found downstream of our Kloof
operation in SA
US PGM operations
A number of significant environmental
management, compliance, sustainability,
and stakeholder engagement achievements
and milestones were achieved during 2018.
These efforts cross multiple management
media types from air, waste, and water
and focus on stakeholder engagement,
minimising our environmental footprint,
and strategic planning. As an industry
leader in environmental stewardship we
believe in continuous improvement through
collaboration, innovation and balancing our
activities with the natural environment.
Examples in the past year include:
• Compliance – During the year, the US
PGM operations operated significantly
below permitted discharge limits for SO2
air emissions, and nitrogen discharge. SO2
emissions were under 5% of permitted
limits and nitrogen discharge was
continually less than 30% of permitted
limits.
• Water treatment expansion – At the
Stillwater mine, water treatment facilities
were expanded from a treatment capacity
of 1,250gpm to 3,000gpm. This will
ensure adequate water treatment capacity
with ongoing expansion of the Blitz
project.
• Adaptive management planning –
Through the Good Neighbor Agreement,
Sibanye-Stillwater has been working with
the Stillwater Protective Association and
• Recycling – Sibanye-Stillwater continues
to operate the world’s largest autocat
recycling programme. In 2018, over
686,592 3E PGM ounces were fed at
the recycling operations in the US. For
comparison, 592,608 2E ounces were
mined in the US in 2018.
• Strategic planning – During the year,
the US PGM operations developed long-
term strategic plans related to future
tailings and waste rock management,
characterisation and permitting; long-term
water management; and air permitting.
These plans are iterative and designed
to complement the existing mines and
business plans.
• Stillwater Protective Association
community barbecue – In association
with the Stillwater Protective Association,
Sibanye-Stillwater hosted a community
Good Neighbor barbeque at its Beartooth
Ranch. This barbeque included an evening
of presentations, and a question-and-
answer session for community members
and interested visitors on the operation
of and activities at Stillwater, including
interaction with Sibanye-Stillwater’s CEO,
Neal Froneman, and other executive team
members.
See the fact sheet: Working together, the
Good Neighbor Agreement
“A potentially new
distinct fish species was
found for the first time
within the Leeuspruit
(Upper Vaal Catchment),
downstream of Kloof,
during the biomonitoring
low-flow assessment
in 2018”
Sibanye-Stillwater Integrated Report 2018 139
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
“A number of significant
environmental management,
compliance, sustainability,
and stakeholder
engagement achievements
and milestones were
achieved during 2018”
US OPERATIONS: STOP I-186 CAMPAIGN
Our leadership in the industry coalition
Stop I-186 campaign, which would have
stifled mining development in the state
of Montana, contributed to a resounding
“No” vote.
Initiative 186 (I-186) would have required the
Department of Environmental Quality to deny a
permit for any new hard-rock mine in Montana
unless the mine’s reclamation plan provided clear
and convincing evidence that the mine would
not require perpetual treatment of water polluted
by acid mine drainage or other contaminants.
The supporters of I-186 stated that the terms
“perpetual treatment”, “perpetual leaching”
and “contaminants” had not been fully defined
and would require further definition by the
Montana Legislature or through Department of
Environmental Quality rule-making.
Opposition to I-186 represented a diverse
cross-section of organisations and groups
in Montana, including Sibanye-Stillwater. All
agreed that it would have a negative impact on
mining and the state of Montana – upsetting
the balance that provides for thousands of
families while protecting the environment.
Sibanye-Stillwater maintains that “our mining
improves lives.” We are the largest industrial
employer in Montana with more than 1,600
employees. Conducting our business among
the world’s most pristine landscapes is a
unique privilege, and we are stewards of the
environment not only because of our regulatory
and social obligations but also because we live
and recreate there. We believe in our unique
balance between environmental stewardship
and responsible rural economic development,
which I-186 jeopardised.
Monitoring rivers near our US PGM operations
140
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION “We consider all
environmental
incidents as
serious”
54% of the non-conformance reported at the gold
operations (29 from 54) resulted from exceedances
of the licensed discharges limits.
93% of the non-conformance reported at the SA
PGM operations (37 from 40) resulted from dust
exceedances resulting from the transportation of
surface material for reprocessing. An air quality
assessment was conducted to determine high-risk
areas and effective abatement measures have been
implemented.
US PGM operations
The US PGM operations experienced one level 3
incident and 30 internally reportable events during
the year. All releases were immediately cleaned up
and remediated.
We continue to leverage technology to reduce air
emissions to levels well below state and federal
limits. Air quality at our US operations are mainly
affected by sulphur dioxide (SO2) at our processing
facilities. Gases released from smelting operations
are routed through a state-of-the-art, dual alkaline,
gas/liquid scrubbing system, which removes
approximately 99.8% of SO2. During the year,
2.6 tonnes of SO2 was released, amounting to
3.3% of our permitted limit. Monthly discharge
rates have been routinely less than 5% of annual
permitted levels.
In March 2018, we submitted air quality
permit modifications for the Columbus
Metallurgical Complex and the East Boulder
mine to accommodate increasing processing
and production rates. The 13800 Blitz vent raise
minor revision was submitted to the Forest Service
and State of Montana to permit the necessary
ventilation breakout needed to support ventilation
demands together with 50E portal in-take at
the Stillwater mine. The Montana Department
of Environmental Quality has also approved
an amendment to the East Boulder mine site’s
air quality permit to allow average annual ore
production of up to 3,000t per day.
INCIDENT MANAGEMENT
As per Sibanye-Stillwater’s procedures require that,
all incidents are reported, investigated, classified
and managed according to their potential risk and
impact on the environment. Root-cause analyses
are conducted to inform appropriate action plans
that will mitigate potential impacts and also
prevent a recurrence of the incident. All incidents
are classified, evaluated and reported internally on
a monthly basis and externally to the regulators
when required.
While we consider all environmental incidents
serious, we disclose all level 3 (short-term
impact), level 4 (medium-term impact) and level
5 (long-term impact) environmental incidents to
the relevant competent environmental authority/
regulator.
SA gold and SA PGM operations
In 2018, no level 4 or 5 incidents were reported
with a 58% decrease in the number of level 3
incidents. The total number of level 3 incidents
decreased to five (2017:12) with all of the
incidents closed out. Two level 3 incidents were
reported at our gold operations and
three at the SA PGM operations. Four of the
incidents related to mine dam overflows and one
to the discharge of mine water following theft
of a pipeline. The impact of these incidents can
be classified as negligible or low with a short
duration.
The decline in incidents reported followed as a
result of the below average rainfall recorded in
2018 as well as the thorough management root
cause analysis and controls in place.
See environmental incidents at
www.sibanyestillwater.com for more detail on the
level 3 and higher incidents reported during 2018
Major non-conformances increased to 94 in
2018 (2017: 22) following a more stringent
management review and control process and
implementation of a new procedure classifying
water discharge quality compliance and dust fall
exceedances as non-compliances.
The procedure uses several water quality limits and
criteria, frequency of exceedance, as well as toxic
and chronic effect limits to determine the severity
of the non-conformance.
Sibanye-Stillwater Integrated Report 2018 141
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
GROUP: CARBON
EMISSIONS TARGET
The proposed carbon emissions target
for the Group was sent to the Science
Based Targets Initiative (SBTi) for review
against their assessment criteria.
SBTi, a collaboration between CDP, the United Nations
Global Compact, World Resource institute and the
World Wide Fund for Nature, is aiming for science
based target setting to become standard business
practice by 2020 so that corporations will play a major
role in driving down global greenhouse gas emissions.
The Group target, to reduce absolute scope 1 and 2
GHG emissions by 27% by 2025 from a 2010 base
year. On 26 March 2019, the SBTi approved the Group
target demonstrating that our emissions reduction
targets conform to the required science-based
calculation methodology and are aligned to contribute
to the global climate change challenge.
“The
implementation of
energy efficiency
projects has been
instrumental in
the continuous
reduction of
carbon emissions
and in reducing
our carbon
footprint”
We recycle waste for a cleaner
environment close to our SA gold
operations as part of our industry
collective initiatives
142
Sibanye-Stillwater Integrated Report 2018
CARBON MANAGEMENT
Sibanye-Stillwater considers climate change to be
one of the most pressing global environmental
challenges of our time, and we recognise the
importance of proactively managing our carbon
footprint in the global context. We are also
committed to contributing to a global solution by
deploying responsible strategies and actions.
We have been voluntarily monitoring and reporting
on our carbon emissions in our annual and investor
reports, including those compiled for the CDP,
using the World Resources Institute’s Greenhouse
Gas Protocol to determine our carbon inventory.
In 2017, the South African Department of
Environmental Affairs promulgated regulations for
mandatory annual reporting of carbon emissions,
primarily to inform the national inventory. Sibanye-
Stillwater’s first annual report in this regard was
submitted to the Department of Environmental
Affairs in March 2018.
The South African government has set the
trajectory for the country’s nationally determined
carbon emissions as follows: greenhouse gas
emissions are planned to peak between 2020 and
2025, to plateau for 10 years from 2025 to 2035,
and to decline from 2036 onwards.
Notwithstanding government’s intention, we
strive to reduce our carbon emissions year-on-year.
During 2018, our 2010 base-year emissions were
reviewed and recalculated in accordance with the
Greenhouse Gas Protocol to incorporate the US-
domiciled Stillwater operations acquired in 2017
as well as the DRDGOLD transaction concluded in
July 2018.
The Intergovernmental Panel on Climate Change
requires, by 2050, carbon emissions to decrease
by 49% to 72%, relative to 2010 levels, and
thereby to limit the increase in global average
temperatures to below 2°C. We have aligned our
carbon-emission reduction objectives accordingly
and aim to reduce emissions annually by an
average of 2.1%.
Our base-year (2010) Scope 1 and 2 emissions,
incorporating Stillwater and the DRDGOLD
transaction, amounted to 7,808,692 tonnes
carbon dioxide equivalent (CO2e).
Group Scope 1 and 2 carbon emissions declined
by 14% from 2017 to 2018. Our carbon
management activities (secondary sealing) at
Beatrix reduced carbon emission levels by
198,522 tonnes (described on page 146).
See the fact sheet: Generating clean energy: the
Beatrix methane capture and destruction project
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA operations
Annual total CO2e emissions, Scope 1 and
Scope 2, declined by 3.9% (2017: 2.0%) in
2018 to 5,525,134t CO2e, exceeding our
year-end target of 2.1%. On 5 February
2019, the Standing Committee on Finance
adopted the Carbon Tax Bill. A carbon levy
on petrol and diesel comes into effect from
5 June 2019. The financial impact of the
carbon levy on petrol and diesel is estimated
to be R2 million per annum (on the basis of
the 2018 fuel consumption levels). Should
the carbon tax levy be fully enforced, we
would be liable for approximately R4 million
per annum, based on current emission
levels and where a carbon tax is levied on
Scope 1 emissions (Phase 1 of carbon tax
implementation). Phase 2 of carbon tax
implementation is expected to begin in 2023
and it could be extended to include a tax on
electricity. During Phase 2, the carbon tax
on electricity purchased from Eskom could
be passed on to consumers. We submitted
our comments on the proposed Carbon Tax
Bill to National Treasury on 9 March 2018,
rejecting it on the basis of the financial
impact on marginal operations.
Scope 1 emissions (direct fuels) decreased
by 28% year on year due primarily due to
reduction of fugitive mine methane as a result
of the secondary sealing at Beatrix. Scope 2
emissions (purchased electricity) decreased by
12% primarily due to the implementation of
energy efficiency projects.
The implementation of energy efficiency
projects has been instrumental in the
continuous reduction of our carbon
footprint and therefore the potential carbon
tax payable.
Operational changes, such as the cessation
of underground mining at Cooke 1, 2 and 3
(reduction of 94,804MWh and 91,960t CO2e
in carbon emissions) as well as disruptions
following safety related incidents at Kloof
and Driefontein, power disruption earlier in
the year at Beatrix, and damage to footwall
infrastructure providing access to the western
side of the Masakhane shaft contributed to
the decreased consumption and emissions.
To maintain alignment with the long-term
national emissions reduction trajectory,
switching to low-carbon fuel sources where
feasible is desirable. The first 50MW unit of
the planned solar photovoltaic plant, to be
constructed in the West Rand near the gold
operations, is expected to be completed
by late 2020, subject to final government
approvals, and will reduce carbon emissions
by 129,858t CO2e per annum.
SA OPERATIONS: AIR QUALITY MANAGEMENT
A standardised procedure for air quality
management monitoring and reporting
was finalised in April 2018. This procedure
standardises the dust management approach
across SA operations.
Key developments during 2018 included active
participation in the Highveld Priority Area
Implementation Task Team to minimise emissions as
well as the completion of an air impact assessment
at the Burnstone operation. Burnstone is located in a
declared air priority area.
While emissions from Burnstone are largely within
legislated limits, air quality in the area is poor
due to the cumulative effects of emissions from
numerous non-mining related facilities. Burnstone
has an approved dust management plan to minimise
emissions.
A similar dust risk study was conducted at our SA
PGM operations in 2018. The study provided a
dust risk profile and quantified particulate matter
emissions from major sources so that dust sources
could be prioritised.
Quantification of emissions will also be used for annual
emissions reporting to the Department of Environmental
Affairs South African Atmospheric Emission Licensing
and Inventory Portal in March 2019.
Communities are considered as sensitive receptors
during air impact assessments. Dustfall regulations
require areas to be classified as residential or
non-residential in accordance with the local town-
planning scheme. Dustfall monitoring networks
comprise representative sampling at monitoring
points on residential and non-residential sites, and
may also include off-site communities. Monitoring
results are compared with the limits stipulated
in the dustfall regulations, and together with
exceedances, reported to the authorities (district
municipalities as legislated competent authorities
on local air-quality matters).
Atmospheric emissions licences or provisional
atmospheric emissions licences are in place at
all operations where they are required: Beatrix,
Burnstone, Cooke, Driefontein and Kloof.
All operations submitted annual reports for
licensed activities on the Department of
Environmental Affairs National Atmospheric
Emissions Inventory System online portal in
March 2018. The next submission is scheduled
for March 2019.
US PGM operations
Annual average Scope 1 and Scope 2
carbon emission levels declined by 5.0%
(2017: -0.2%) in 2018 to 141,237 tCO2e.
Scope 1 emissions (direct fuel use) increased
by 44% due to higher consumption of
diesel for transportation and explosives
usage related to the Blitz expansion project.
Scope 2 emissions (purchased electricity)
decreased by 48% primarily due to a
change from a thermal to hydro source
of electricity at the Stillwater mine and
Columbus Metallurgical Complex.
The Stillwater mine is currently testing a
battery powered load haul dumps off-shaft.
Depending on testing, this may reduce
Scope 1 emissions while correspondingly
increasing Scope 2 emissions with battery
charging. The US operations also continue
to replace existing lighting fixtures with
LED bulbs.
ENERGY EFFICIENCY
SA operations
To counter the prospects of rising electricity
costs in South Africa, management
continues to pursue energy efficiency
opportunities at our SA gold and PGM
operations in order to limit or reduce the
impact on our cost base.
In 2018, the SA gold operations consumed
a total of 3.79TWh of electricity – an
8.9% reduction from 2017 consumption
of 4.16TWh, largely as a result of energy
efficiency improvements, mine incidents, the
strike and Eskom interruptions. Successfully
implemented energy-efficiency projects
enabled 4.5% of the 8.9% reduction
in consumption and saved R179 million
in electricity expenditure. The SA PGM
operations achieved a reduction in electricity
consumption largely through footprint
optimisation and mill reconfigurations.
Sibanye-Stillwater Integrated Report 2018 143
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
In parallel, management continues to actively
participate in several forums aimed at resolving the
operational and financial woes faced by Eskom,
and the mapping of its medium- to-long term path
through the energy transition. These forums have
included engagement with stakeholders such as
Eskom, directly, government, the National Energy
Regulator of South Africa, the Energy Intensive
User Group and the Minerals Council South Africa.
Sibanye-Stillwater also presented at the public
hearings for Eskom’s Regulatory Clearing Account
applications for Multi-Year Price Determination
(MYPD) 3 (years two to four and, separately, year
five) and MYPD4, advocating affordable electricity
to ensure the sustainability of our operations and
global competitiveness.
In terms of NRS048-9, in the event that Eskom
cannot supply national electricity demand and
institutes load shedding, the operations are issued
a “load curtailment” instruction several hours
in advance, calling for a managed electricity
consumption reduction of 10% (Stages 1 to 2),
15% (Stage 3) or 20% (stage 4), depending on
the severity of the event. In response to the load
curtailment events experienced in Q4 2018 and
Q1 2019 thus far, operations management has
managed to minimise production losses and has
put in place plans to limit any impact and
risks associated with potential future load
curtailment events.
Looking forward, the 2019 energy management
strategy has been improved to focus on holistic
energy efficiency using digital applications,
such as digital twinning. The strategy will also
continue to focus on ongoing improvements in
the use of compressed air, pumping, ventilation
and refrigeration, as well as the elimination
of waste consumption, application of new
technologies and footprint optimisation. This will
ultimately reduce electricity consumption and
expenditure. The new approach is expected to
achieve a net electricity consumption reduction of
approximately 2% in 2019.
As part of the medium- to-long term energy
management strategy, Sibanye-Stillwater
is still pursuing the first 50MW phase of its
solar photovoltaic project to be built on a site
strategically placed between the Driefontein and
Kloof mining complexes on the West Rand. The
project, originally envisioned in 2014, represents
a partial solution to securing alternative electricity
supply and enables the power generated to
be injected directly into the mine’s electrical
reticulation while reducing our overall electricity
expenditure and carbon footprint. Sibanye-
Stillwater elected to run a competitive tender
process to appoint a developer who will build,
own and operate the project, and sell power back
to Sibanye-Stillwater through a power purchase
agreement (PPA). This approach has a minimal
upfront capital requirement for Sibanye-Stillwater
and allows capital to be prioritised for core mining
projects. The tender was successfully concluded
in 2017, enabling a significant forecasted return
to Sibanye-Stillwater over the course of the
agreement. Although several regulatory delays
were experienced in 2018, resolutions are
expected to be reached in 2019. The PPA will then
be executed and construction will begin.
Monitoring rivers near our US PGM operations
144
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION US PGM operations
Electricity procurement at the US PGM operations follows two distinct schemes due to nuances in Montana’s electricity regulation laws. The
Stillwater mine and Columbus Metallurgical Complex can purchase power on the wholesale market as a “choice” customer. The East Boulder
mine is required to procure power from a local rural electricity co-operative. In July 2018, the Stillwater mine and Columbus Metallurgical
Complex signed a new contract to purchase power from a hydro-electric dam in north central Montana owned and operated by a local Native
American tribe. This contract replaced another that sourced power from thermal resources.
In addition to electricity sourcing, the US operations have been actively engaged in LED lighting changes, implementing as needed, secondary
ventilation, testing battery-powered equipment, identifying and repairing air and water leaks, employing variable-frequency drives to control
pump motors, reducing peak-energy demand, and using soft-starts on all large stationary equipment.
Electricity consumption (TWh)
SA operations
Gold
Beatrix
Cooke
Driefontein
Kloof
PGM
Kroondal
Rustenburg
US operations
Stillwater 3
East Boulder
Group
1 Includes Burnstone’s consumption of 0.02TWh
2 May to December 2017
3 Includes the Columbus Metallurgical Complex
4 Includes Marikana
5 Restated due to totalling errors
Energy intensity (GJ/tonne milled)
SA operations
Gold
Beatrix
Cooke
Driefontein
Kloof
PGM
Kroondal
Rustenburg
US PGM operations
Stillwater 2
East Boulder
Group
1 May to December 2017
2 Includes the Columbus Metallurgical Complex
2018
5.28
1 3.79
0.57
0.43
1.38
1.39
4 1.49
0.30
1.18
0.32
0.24
0.08
5.60
2018
0.52
0.81
0.72
0.38
1.61
0.73
0.28
0.17
0.34
1.34
1.89
0.67
0.55
2017
5.76
1 4.16
0.63
0.54
1.50
1.47
1.60
0.36
1.24
2 0.72
2 0.19
2 0.53
5 6.48
2017
0.60
0.79
0.78
0.53
0.91
0.94
0.22
0.21
0.22
1 0.95
1 1.40
1 0.49
0.69
2015
4.21
4.21
0.65
0.59
1.47
1.50
2014
4.28
4.28
0.65
0.63
1.47
1.53
2016
5.82
4.16
0.66
0.58
1.44
1.46
1.66
0.34
1.32
5 5.82
4.21
4.28
2016
0.68
0.79
0.69
0.43
0.89
1.15
0.45
0.51
0.38
–
–
–
2015
1.02
1.02
0.73
0.76
1.03
1.56
–
–
–
–
–
2014
0.98
0.98
0.69
0.77
1.09
1.36
–
–
–
–
–
–
0.68
1.02
0.98
Sibanye-Stillwater Integrated Report 2018 145
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
SA operations: Energy efficiency project savings
Ventilation fans and cooling networks optimisation
Air and water circuits optimisation
Variable speed drive controls on drive motors
Efficiencies from use of turbines
Three-chamber pump system deployment
Reduction of electrical distribution footprint
Shaft decommissioning
Processing plant optimisation
Compressor discontinuation
Total
MWh
19,997
101,619
8,071
12,115
884
1,752
1,526
6,889
15,805
168,658
t CO2e
19,397
98,570
7,829
11,752
857
1,699
1,481
6,682
15,331
163,599
Potential carbon
tax savings (R)*
931,052
4 731,372
375,793
564,096
41,138
81,573
71,069
320,760
735,877
7,852,732
* Potential carbon tax savings premised on the tax on electricity coming into effect
Total CO2e emissions: Scope 1, 2 and 3 (000t CO2e)
2018
US
operations
SA operations Group
2017
US
operations1
2016
2015
2014
2013
SA operations
SA operations
SA operations
PGM
PGM
Gold
Total
PGM
PGM
Gold
Total
PGM
Gold
Gold
Gold
Gold
Group
Total
Scope 1 (excluding
fugitive mine
methane)
Scope 1 (fugitive
mine methane)
Scope 2
Scope 3
CO2e intensity (per
tonne milled)
203
46
44
113
196
32
43
121
116
18
99
94
110
62
366
5,097
2,157
NA
NA
366
565
95
1,398
3,604
5,837
569
995
593
2,539
NA
183
544
NA
565
596
596
650
660
572
1,573 4,081 4,720
557 4,163
4,272
4,405
3,774
980 1,016 1,029
180
849
867
863
634
0.14
0.11
0.07
0.24
0.13
0.01
0.06
0.25
0.22
0.12
0.24
0.25
0.28
0.32
1 January to December 2017 in accordance with World Resources Institute Greenhouse Gas Protocol
For Scope 3 emissions from the US operations during 2017 and 2018, in the absence of a site-specific or US country-specific emission factor, the South
African-specific emission factor is used for the Stillwater operations as the bulk of Sibanye-Stillwater’s emissions emanate from the SA operations. The
US operations continue to refine the processes for the reporting of information for the Scope 3 categories.
Scope 3 categories (as per the World Resources Institute supplementary document “Corporate value chain (Scope 3) accounting and reporting
standard”) not included:
• Business travel at the US operations is not tracked and not yet reported
• Upstream leased assets: no significant upstream leased assets have been identified
• Use of sold products: emissions associated with use of products sold are deemed insignificant as only processing and end-of-life treatment of
products sold are expected to have significant associated emissions
• Franchises: Sibanye-Stillwater does not have franchises
Scope 3 categories included:
• Purchased goods and services: CO2e emissions associated with extraction and production
• Capital goods: CO2e emissions associated with production of purchased company-owned vehicles
• Fuel- and energy-related emissions not included in Scope 1 or Scope 2: emissions associated with extraction, production and transportation of diesel,
petrol, liquid petroleum gas, coal, blasting agents, oxyacetylene and grid electricity
• Upstream transportation and distribution: CO2e emissions associated with transportation and distribution of purchased commodities
• Waste generated in operations: CO2e emissions associated with disposal and treatment of Sibanye-Stillwater’s solid waste and wastewater in facilities
owned or operated by third parties (such as municipal landfills and wastewater treatment facilities)
• Business travel: CO2e emissions associated with employees work-related travel for the SA operations
• Employee commuting: CO2e emissions associated with transportation of Sibanye-Stillwater’s employees between homes and work sites
• Downstream transportation and distribution: CO2e emissions associated transportation of products from Sibanye-Stillwater sites
• Processing of sold products: CO2e emissions associated with smelting to repurpose products
• End-of-life treatment of sold products: CO2e emissions associated with smelting to repurpose products
• Downstream leased assets: CO2e emissions associated with the leasing of houses where emissions are generated from electricity use at the
SA operations
• Investments: CO2e emissions from investments
146
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Nitrogen oxide and sulphur dioxide emissions 2 (tonnes)
Nitrogen oxides
SA operations
US operations
Group
Sulphur dioxides
SA operations
US operations
Group
1 January to December 2017
2018
2017
2016
2015
2014
2013
1,119
112
1,231
656
4
660
1,126
1 105
1,231
605
1 6
611
887
–
887
667
–
667
618
–
618
499
–
499
19,901
14,618
–
–
19,901
14,618
632
–
632
464
–
464
2 Nitrogen oxide and sulphur dioxide emissions for the SA and US operations are derived by the multiplication of fuels (diesel, petrol, liquid
petroleum gas, coal, helicopter fuel and paraffin) by the corresponding emission factors. The US operations also include SO2 emissions from the
Columbus Metallurgical Complex
WASTE MANAGEMENT
Sibanye-Stillwater aims to act responsibly in terms of waste management through the implementation of existing waste management
procedures based on the current environmental policy statement: “efficient use of resources and responsible management of all waste streams”.
Waste management (Mt)
Group
Total
Tailings deposited
2018
2017
2016
2015
2014
2013
US
operations
SA
operations
Group
1 US
operations
SA
operations
SA operations
SA operations
PGM
PGM
Gold
Total
PGM
PGM
Gold
Total
2 PGM
Gold
Gold
Gold
Gold
Tailings storage facilities
18.94
0.67
4. 86
13.41
32.70
0.39
17.05
15.26
26.16
10.7
15.46
14.31
15.73
13.11
Tailings into pits
Waste rock
Recycled waste 3
Total mining waste
3.89
6.44
12.18
29.27
NA
1.3
0.69
1.97
1 May to December 2017
0
3.89
5.14
3.27
3.39
0
0
3.27
0.87
12.52
0
4.02
2.40
0
2.22
4.02
0.18
0
11.49
11.45
0
0
11.45
12.09
0
12.09
10.00
17.30
39.36
1.260
19.57
18.53
32.61
12.92
19.69
4.20
7.14
11.34
25.65
3.79
0.60
11.96
20.12
–
0.76
13.29
13.87
2 Nine months for Kroondal and two months for Rustenburg operations
3 Gold-bearing material such as waste rock dumps retreated at plant
The Columbus Metallurgical Complex facility in Montana, US
Sibanye-Stillwater Integrated Report 2018 147
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
Materials consumed
2018
US
Group
operations
SA operations
Group
2017
1 US
operations
2016
2015
2014
2013
SA operations
SA operations
SA operations
Timber (t)
Cyanide (t)
Total
85,564
3,450
PGM
146
NA
PGM
Gold
Total
14,193
71,225
117,706
NA
3,450
7,552
PGM
263
NA
PGM
Gold
Total
2 PGM
Gold
Gold
Gold
Gold
16,041
101,402 110,606
NA
7,552
11,967
82
NA
110,524 163,722 104,468 110,524
11,967
11,924
11,758
11,967
Explosives (t)
30,437
4,331
21,920
4,186
31,942
3,893
22,140
5,902
13,814
7,046
6,768
7,854
4,175
6,768
Hydrochloric
acid (t)
Caustic soda (t)
Lime (t)
Cement (t)
Diesel (kL)
Lubricating and
hydraulic oil (kL)
Grease (kg ‘000)
5,148
2,632
50,278
19,809
26,903
8,730
154
1
0
0
3,454
8,766
447
15
0
0
0
5,147
2,384
4,469
3,378
50,278
72,378
0.4
204
NA
NA
NA
NA
4,469
4,414
3,174
2,674
72,378
76,556
NA
NA
NA
4,414
3,773
3,579
4,414
2,674
3,421
2,947
2,674
76,556
68,128
39,843
76,556
8,294
8,062
60,706
16,459
3,459
40,788
44,378
1,513
42,865
41,101
38,579
42,865
12,635
5,502
26,059
7,344
12,772
5,943
10,422
3,325
7,097
6,410
6,274
7,097
6,817
1,466
7,170
17
122
224
565
11
5,194
1,411
7,777
7,777
26
187
19
19
–
–
–
–
–
–
–
–
1 Represents January to December 2017 figures while Sibanye-Stillwater consumption is only from May to December 2017
2 Includes operations under management: Kroondal (50%) from April to December 2016 and Rustenburg from November to December 2016
At the gold operations, changes such as the
cessation of underground mining at Cooke 1,
2 and 3 as well as disruptions following safety
related incidents at Kloof and Driefontein,
power disruption earlier in the year at Beatrix
and the transfer of transfer of Driefontein 2
and 3 gold plants to DRDGOLD from August
2018 has contributed to a general decrease in
the volume of materials consumed in 2018 as
compared to 2017. During 2018, the volume
of surface material processed at the gold
plant increased to compensate for the lower
tonnage from underground. The mineralogy
of surface material required a higher strength
of hydrochloric acid for effective processing
and which resulted in increased quantities of
hydrochloric acid in 2018.
In reference to materials consumed by
the US PGM operations, a comparison
of year-on-year use showed a reduction
in timber use, cement and hydraulic
oils while increasing use of greases. All
other parameters remained essentially
unchanged. While explosives and diesel
show increased use, the values reflected in
the table above compare eight months of
use in 2017 versus 12 months in 2018. As
a result, for explosives and diesel (year-on-
year), these values are essentially the same
when reconciled for a full 12-month period.
Timber is used at the mines for ground
support and backfill activities. Annual use is
dependent on the type of rock encountered
underground, mining method, backfill
type and the need for additional ground
support. Less timber was needed for these
activities in 2018 as a result of better
ground conditions during the year and
the type and location of backfill activities.
Similarly, cement use decreased significantly
during 2018 as a result of less paste
backfill and improved ground conditions
resulting in lower shotcrete requirements.
Lower hydraulic oil use was observed as a
result of improved equipment operation
and maintenance activities including more
frequent “greasing” of equipment which
resulted in higher grease use.
SA gold and PGM operations
Our gold operations focused on improving
waste record keeping and licensing
management in 2018 to ensure compliance
with legislation at national and regional
levels, specifically in terms of the National
Environmental Management: Waste
Management Act, and its associated
standards and regulations.
A focused sewage sludge initiative began in
2018 and progress will be reported in 2019.
The project aims to investigate the beneficial
use of sewage sludge waste that is typically
sent to landfill and classified as hazardous.
In-vessel composting technology was
purchased for two of the gold operations as
a pilot with the following benefits:
• Sewage sludge waste treated to
acceptable standard for beneficial use as
compost or fertiliser for rehabilitation
and/or agricultural applications
• Decrease in resource requirements
for disposal and management of
sewage sludge
• Reduced greenhouse gas emissions
• Opportunities created for community
and municipal involvement as well as
expansion of the composter at other
operations or in applications such as food
waste processing
A waste minimisation plan is being
developed for the SA PGM operations in line
with our aim to have zero waste to landfill
by 2030.
The National Environmental Management:
Waste Management Act: National
Information Regulations requires that
certain waste generators are registered
with the national and regional waste
information systems. The need to report
on waste information is defined according
148
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION to the type and quantity of waste produced by a
waste generator. The Driefontein gold operation
was the only operation that required registration
in 2018 while the SA PGM operations were
already registered. The regulations highlight the
importance of accurate waste record-keeping.
rock lining system was completed in 2016 and
all waste rock is now stored on liners for water
collection. At both mines, the water collected
from the waste rock lining systems is transferred
to the water treatment plants for denitrification
and water management.
Progress was made with the planned donation of
a portion of mine land (119 hectares) on which
the Waterval landfill is located, to the Rustenburg
Local Municipality. Through the donation process,
Sibanye-Stillwater will relinquish the liability
for closure and will only be responsible for the
latent or residual liabilities or impacts, pollution
and ecological degradation emanating from
the previous use of the site for mining-related
activities.
US PGM operations
Hazardous and non-hazardous waste generation
rates at the US operations remained essentially
unchanged during the year. The Stillwater and
East Boulder mines are identified as conditionally
exempt small-quantity generators by the EPA
while the Columbus Metallurgical Complex is
a large-quantity generator as a result of lead
waste generation from the fire-assay process in
the laboratory. Both mines continue to generate
small quantities of hazardous waste associated
with aerosol can disposal and the occasional
need to dispose of waste chemicals. For many
years, the US PGM operations have implemented
a new product review process: any products
proposed for use on site must first undergo an
extensive chemical review by the environmental
and safety departments. If the proposed product
contains any chemicals that present a safety or
environmental risk, they are rejected and not
allowed on site. This process has enabled our
waste generation rate to remain low.
During 2018, the Stage 2, Phase 1 section of the
East Side waste dump at the Stillwater mine was
lined to collect all meteorological water passing
through the dump and leaching residue nitrogen
from the waste rock. There are four proposed
lining stages for the waste dump with Stage 1
complete and Stage 2, Phase 1 complete. All
“new” waste rock generated at the Stillwater
mine is placed on a liner. The lining also serves
to cap existing, historic waste rock not placed on
the liner. The Stage 2, Phase 2 liner is scheduled
for installation in the spring of 2019 while Stage
3 and Stage 4 are scheduled for later years
depending on waste rock production rates.
Similarly, at the East Boulder mine, the waste
Both mines continued with extensive future
waste rock and tailings design and permitting
efforts, including identification of best available
technologies, site investigations, alternatives
assessments, failure modes effects analysis, and
multiple accounts analysis for the various waste
rock and tailings storage alternatives. These
activities and efforts were all completed in
collaboration with stakeholders including the
Good Neighbors, regulatory agencies, independent
review panel experts, and local communities.
During the year, the Stage 6 expansion of the East
Boulder tailings storage facility was submitted
to the agencies for permitting while efforts
continue for preparation of the plan of operations
Amendment for the future Lewis Gulch tailings
storage facility and the Dry Fork waste rock
storage dump at East Boulder. At Stillwater, similar
activities are underway for a Plan of operations
amendment for the Hertzler Stage 4/5 tailings
storage facility expansion and an expansion of the
east side waste rock storage dump. In both cases,
the plan of operations amendment is targeted for
submission in Q4 2019, which will initiate a multi-
year environmental review and assessment by the
permitting agencies.
At the Columbus Metallurgical Complex, efforts
for the year focused on routine maintenance and
cleanout of the SO2 regeneration circuit and ongoing
management of the gypsum by-product. During
the year, approximately 450t of calcified scale was
cleaned from the regeneration circuit and properly
managed. This maintenance activity will ensure the
ongoing successful operation of the SO2 removal
circuit for future years at the smelter. Additionally,
the US operations continue to pursue a long-term
gypsum management strategy. During the year, a
long-term management contract was established
with a local landfill, investigations were conducted
for a company-managed long-term gypsum storage
repository, relationships were established with area
farmers for ongoing gypsum agriculture use, and
testing was initiated for possible use of the synthetic
gypsum in a cement plant in Montana.
“Our concurrent
rehabilitation and
closure strategy
considers the
protection of land
and biodiversity
to ensure post-
mining land uses
acceptable to
stakeholders”
Our SA gold operations run a
combat project against alien
invasive trees
Sibanye-Stillwater Integrated Report 2018 149
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION MINIMISING THE ENVIRONMENTAL IMPACT CONTINUED
“New mine
developments
undergo
a detailed
environmental
impact
assessment
process”
REHABILITATION AND CLOSURE
Our concurrent rehabilitation and closure strategy
considers the protection of land and biodiversity
to ensure post-mining land uses acceptable
to stakeholders. Rehabilitation plans promote
indigenous vegetation growth and aim to return
land to a pre-mining state, weighed against socio-
economic development requirements as well as the
views of impacted mining communities insofar as
end land use is concerned.
Refer to the 2018 Group Annual Financial
Statements
Our management processes contribute to the
conservation of biodiversity and integrated
approaches to land use planning, as guided by
the ICMM.
SA operations
At our SA operations, new mine developments
undergo a detailed environmental impact
assessment process in which all protected areas
and the potential impacts from development are
identified in line with the national environmental
legislation. Mitigation actions and plans are
included in environmental management
programmes for which approval is sought from
the regulatory authorities. Where development
needs to occur in ridges and wetlands, we apply
for licensing, and specific mitigation measures are
proposed and signed off by the relevant regulatory
authority before implementation. Scientific
information on mine closure and rehabilitation
as well as biodiversity aspects are continuously
generated by professional scientists and other
experts, and disseminated to the mining industry
through the Minerals Council’s Environmental
Policy Committee, the South African Mining
Biodiversity Forum, relevant catchment
management forums, the Land Rehabilitation
Society of Southern Africa as well as conferences
and research projects.
Total closure liability for the SA operations as at
31 December 2018 (including our portion of
environmental liability in joint ventures and projects)
was R7.1 billion. Of this, R2.8 billion was for the PGM
operations and R4.3 billion for the gold operations.
The inclusion of 15% VAT, as currently proposed
in draft legislation, would add approximately R1.1
billion to the cost. We await the anticipated issuance
of the draft financial provisioning regulations for
public review and comment.
The closure plans have focused specifically on
redundant buildings and infrastructure as well as
infrastructure on prolonged care and maintenance.
At our PGM operations, R1.15 billion (43%) of
the total provision of R2.8 billion was identified
for potential permanent closure. Care and
maintenance opportunities at our gold operations
include the Libanon 9 and Beatrix 2 shafts with a
closure provision of R26.4 million. Execution of the
closure liability reduction projects and initiatives
identified is subject to, among others, finalisation
of the mine plans for 2019 and beyond.
US PGM operations
In addition to responsible closure and reclamation,
the US operations have conservation easements
on nearly 40% of its owned land. These legal
mechanisms protect scenic vistas, enhance wildlife
habitat, and preserve wildlife migration corridors,
while maintaining Montana’s rural character and
fostering biodiversity and healthy forests.
Reclamation and closure bonds are required at
both mines in the US to ensure adequate resources
are available to fund reclamation activities at
closure. The amounts are adjusted at least
every five years or as required by expansion and
disturbance requirements following a collaborative
review by the US and its regulatory agencies. Based
on the five-year review, the East Boulder mine is
scheduled for review in 2019 while the Stillwater
mine is scheduled for 2020. State and federal
regulatory authorities initiate and complete these
reviews. The US operations assist in these reviews,
provides information and data as requested, and
ultimately sign off in agreement with the agency
review and calculation.
During the year, US$1 million of additional bond
was included for the Stillwater mine to address
ongoing expansion activities associated with
Blitz. This included the addition of the rail-dump
expansion, the 50E north portal addition, the
13.8 surface ventilation breakouts, and water
treatment expansions. The reclamation and
closure bond is currently US$25.3 million at the
Stillwater mine, including the Benbow Portal, and
US$18.0 million at the East Boulder mine. An
additional US$0.3 million is held for exploration
activities not directly tied to either mining
operation, for a total of US$42.6 million.
Of the 643 hectares permitted for disturbance,
71% has been disturbed for a total of 457
hectares. Of that total, 236 hectares have been
reclaimed for a total of 52% of all disturbance.
To date, the US operations have not requested any
bond release associated with those 236 hectares.
The US operations have also initiated closure
of the original tailings storage facility at the
Stillwater mine.
150
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SA OPERATIONS: HERITAGE ASSESSMENTS
All environmental impact assessments include heritage assessments – as indicated below for our
gold operations:
• Beatrix – No sensitive heritage resources identified
• Burnstone – Cemetery dating back to 1933
• Driefontein – Sites of archaeological importance found (houses, ruins, workshops, headgear,
hostels, graves and graveyards, Iron Age sites, kraals, huts, Anglo-Boer War stone-packed structures,
religious sites and dilapidated buildings)
• Ezulwini – Sites of cultural significance identified (cemeteries, historic structures, cultural practice
areas and Late Iron Age archaeological sites)
• Kloof – Sites of archaeological importance identified (Iron Age settlements, kraals, historic buildings,
cemeteries, historic shops and farms, and Pullinger shaft)
• Rand Uranium – Graves identified
“Legal mechanisms
protect scenic
vistas, enhance
wildlife habitat,
and preserve
wildlife migration
corridors”
US PGM operations: Land under management and rehabilitated in 2018 (hectares)
Total and/or
permitted
Disturbed
Undisturbed
Rehabilitated/
reclaimed
East Boulder
Stillwater
Columbus Metallurgical Complex
Total
132.9
427.9
82.6
643.4
86.3
357.7
13.0
457.0
46.6
70.2
69.6
186.4
20.8
215.0
0
235.8
US PGM operations
• Good Neighbor Agreement and other
stakeholder collaboration
• Environmental management system gap analysis
and programme definition
• Streamlining toxic inventory reporting
• Implementation and testing of the GNA adaptive
management plans
• Technology enhancement
• Integrated waste management permitting
(long-term) for tailings and waste rock
• Long-term gypsum management strategy
• Strategic land acquisitions
• Completion of an independent bond review
• Automation of tailings operation, maintenance
and surveillance programs
• Reduction in petroleum releases and spills
FUTURE FOCUS
SA operations
• Broad alignment of the US PGM and SA
operations Environmental Vision, values and
practices to the key principles and philosophies
that underscore the ESG criteria
• ISO 14001 implementation planned by 2022
with a comprehensive gap analysis across all the
operations planned for 2019
• Challenging the complex legislative environment
such as the financial provision legislation
and carbon tax to develop greater clarity and
certainty
• Proactive participation to drive a regional water
closure strategy with closer alignment and co-
operation between industry, community, local
and national government
• Comprehensive carbon footprint disclosure
and reduce our carbon footprint through
implementation of emission reduction measures
• Improving verifiable compliance to conditions in
water use licences, environmental management
programmes, atmospheric emissions licences and
other regulatory, legal and generally accepted
standards
• Reduce overall closure liability, through a focused
and cost-effective concurrent rehabilitation
programme
Sibanye-Stillwater Integrated Report 2018 151
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE
ANCILLARY INFORMATION
04
Our Code of Ethics
requires the reporting of
contraventions and non-
compliance with relevant
legislation and regulations
and includes procedures
to address corruption and
bribery.
153 Corporate governance and leadership
176 Remuneration report
152
Sibanye-Stillwater Integrated Report 2018
sectiongovernance CORPORATE GOVERNANCE AND LEADERSHIP
Sibanye-Stillwater is committed to ethical and fair business dealings
and promotes a corporate culture which is non-sectarian, non-
political, socially and environmentally responsible and thus subscribes
to the core values of the organisation and the following principles:
• fairness and integrity in all business dealings, including the ethical
handling of actual or apparent conflicts of interest between
personal and professional relationships
• respect for the human rights and dignity of others
• acceptance of diverse cultures, religions, race, disability, gender
and sexual orientation
• embarking on business activities in a manner that is free of bribery
and corruption
• honesty and accountability
• adherence to sound standards of corporate governance, applicable
laws and commitment to working with relevant stakeholders to
achieve appropriate public policy, laws, regulations and procedures
that facilitate a contribution to sustainable development.
In addition, Sibanye-Stillwater is committed to ensuring that all public
communications and any documents which the organisation files
or submits to any regulatory body or public communication system,
has disclosure which is full, fair, accurate, timely and understandable.
The principles above are implicit in our CARES values, and are applied
in the management of our business, decision-making and in all
reporting to and interaction with shareholders and other stakeholders.
Our corporate governance framework is underpinned by our policy
statements on ethics, corporate governance and human rights.
ETHICAL AND RESPONSIBLE LEADERSHIP
ETHICS IN ACTION
Our Code of Ethics was reviewed and updated in 2018 to take
account of the US operations, suppliers and contractors as well
as social media. The revised Code of Ethics requires that all Board
members, employees, contractors and suppliers conduct themselves
ethically, honestly and fairly. The code, together with supporting
policies, is based on our core CARES values and is the foundation on
which the integrity of our organisational culture is built. Our code
and policies are dynamic and evolving as we strive for even higher
standards.
The code addresses among others, general conflicts of interests,
monitoring of procurement-related conflicts of interest, confidentiality,
bribery, political contributions, accountability and insider trading.
Regular ethics training is provided for all employees, including those
returning from leave, our business partners and Board members.
In building and sustaining an ethical corporate culture, the Board is
assisted by the Audit Committee which is accountable for ensuring
Group-wide compliance with the Code of Ethics, and by the Social
and Ethics Committee which seeks to ensure that Sibanye-Stillwater
complies with best practice in the ethical management of its social
and environmental responsibilities.
Our Code of Ethics requires the reporting of contraventions and
non-compliance with relevant legislation and regulations and includes
procedures to address corruption and bribery such as a toll-free line,
managed by an independent third party (Deloitte) that guarantees
anonymity. The toll-free numbers are: South Africa 0800 001 987 and
United States 1-800-317-0287. This enables employees, suppliers and
customers to report any irregularities and misconduct without fear
of victimisation. The toll-free number is used to report any concerns,
including non-compliance.
CORRUPTION IN 2018
A total of 353 incidents (2017: 638) relating to dishonesty were
reported at Sibanye-Stillwater’s gold operations leading to 313 (2017:
537) employees, including contractors, being charged and disciplined
in terms of our Code of Ethics in 2018.
Unlike in 2017, reporting in 2018 excluded policy breaches that did not
amount to dishonesty or corruption, which accounts for the perceived
reduction in incidents year on year. Furthermore, the lower number of
incidents and arrests reported for 2018 may be attributable to a sharp
decrease in incidents related to illegal mining as a result of the rolling
out of various initiatives to combat this phenomenon.
At Sibanye-Stillwater’s PGM operations in South Africa, 130 (2017:
71) of these incidents were reported with 122 (2017: 44) employees
implicated being charged and disciplined in terms of our Code of Ethics.
The following anonymous calls were received during 2018 at the
SA operations:
Area
Fraud
Breach of company policy
Procurement fraud
Corruption
Illegal mining
Theft of mine property
Time and attendance fraud
Q1
1
5
4
2
1
2
4
2018
Q3
1
6
8
7
6
4
3
Q2
13
11
7
6
3
6
5
Q4
17
10
7
1
3
3
4
Total
32
32
26
16
13
15
16
Total
19
51
35
45
150
Many of the calls provided valuable leads which were investigated.
The US operations were incorporated onto the anonymous tip-off
service hosted by Deloitte on 1 May 2018. Three calls and one email
were received during the year, the three phone calls were test calls
to check that the telephone line was operational, and the email was
a test report requested to check that the correct reporting lines were
followed. No actual complaints or tip-offs, other than the test calls
and email detailed above, were received during the year.
Given the numerous transactions undertaken by Sibanye-Stillwater
in recent years, every effort was made to ensure that no director,
management official or other employee of Sibanye-Stillwater was
able to benefit directly or indirectly based on unpublished price-
sensitive information. A strict procedure which included provision
of trading pre-clearance by the Board Chairman and JSE regulatory
announcements of any dealings by executive directors was followed.
In addition, in certain instances and when required, self-imposed
prohibited trading periods were implemented when management
believed price-sensitive information was available. We also adhered to
strict communication and compliance with blackout/closed periods.
In terms of the Code of Ethics, Sibanye-Stillwater does not, as a
general rule, make political donations, either in cash or in kind. No
political donations were made in 2018.
Sibanye-Stillwater Integrated Report 2018 153
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
RESPONSIBLE CORPORATE CITIZENSHIP
The Board ensures that the company is and is seen to be a responsible corporate
citizen. We ensure this by incorporating the principles of responsible corporate
citizenship into our strategy, and by considering the full range of issues that
potentially influence the sustainability of the business and our ability to create value
over the long term. These principles take into account the social, economic, and
natural environments in which Sibanye-Stillwater operates. In particular, the Social
and Ethics Committee has oversight of the Group’s activities relating to responsible
corporate citizenship while the Board, when making decisions, considers the
impact of Sibanye-Stillwater’s operations on society and the environment, as well
as its financial impact on the communities and employees.
Given the importance of the mining industry to the South African economy and
to the state of Montana in the United States, and to host and labour-sending
communities in particular, our corporate citizenship responsibilities are significant.
These responsibilities – which include: the workplace, society, the economy and
the environment – underpin our corporate strategy as well as our reputation and
relationships with our workforce and communities. Our performance in these areas
is detailed in the relevant sections of this report as follows:
e
c
a
l
p
k
r
o
W
y
m
o
n
o
c
E
y
t
e
i
c
o
S
t
n
e
m
n
o
r
i
v
n
E
• Employee safety, health and well-being is a priority
• Focus on addressing financial indebtedness
• Improving diversity
• Employee development and training
• For further detail see Superior value for the workforce, Safe
production, occupational health and well-being
• Profitable, safe production of precious metals that are sold to
generate revenue
• Job creation
• Sharing value created with key stakeholder groups:
– Salaries and wages paid to employees
– Taxes and royalties paid to governments
– Investment in socio-economic initiatives and local
procurement
– Returns to investors through payment of dividends and
capital appreciation
For further detail see How we create value, CFO’s report, Superior
value for the workforce
• Investment in community development and contributing to
alternative economic activities
• Implementation of social impact management plans as well as
having in place a social closure strategy
• Local procurement
For further detail see Social upliftment and community
development
• Managing our environmental impacts and risks and complying
with relevant legislation, including:
– Land management, rehabilitation and closure
– Water and waste management
– Air quality – dust and energy and emissions management
– For further detail see Minimising our environmental impact
As scrutiny on the integrity of minerals supply
chains intensifies globally, the imperative of
demonstrating the responsibility of our mining
operations is becoming an increasingly critical
priority for all our stakeholders. In addition to
local stakeholders who have direct interest in
our environmental, social and governance (ESG)
performance and with whom we sustain our
licence to operate, investors, lenders and off
takers are progressively insisting on more exacting
standards being honoured.
Sibanye-Stillwater’s operations have subscribed
to the World Gold Council’s Conflict Free Gold
Standard since its introduction in 2012 to ensure
that our mining does not cause, support or benefit
unlawful armed conflict or contribute to serious
human rights abuses or breaches of international
humanitarian law. Our Conflict Free Gold Report
will be published on our website as soon as formal
independent assurance of our conformance
has been obtained from KPMG in line with the
requirements of the standard during 2018.
During the course of 2018, we worked closely
with the World Gold Council in developing the
Responsible Gold Mining Principles (RGMPs) that
cover the full spectrum of ESG issues. The RGMPs
are expected to complement the London Bullion
Market Association’s (LBMA’s) Responsible Gold
Guidance, which will start to embrace the ESG
credentials of primary producers from January
2019 as part of the mandatory requirements to
supply into LBMA-accredited refineries. Parallel
work is being undertaken on the development of a
responsible PGM mining code in collaboration with
the PGM fabrication and beneficiation supply chain
through the International Platinum Association.
We continue to sustain and intensify our focus on
ESG performance, with gap analysis conducted
to identify areas where improvement will enable
attainment of enhanced assurance. A need
has been identified for the adoption of more
formalised Group-wide management systems
geared to the requirements of a mine operator
spanning commodities and jurisdictions. This will be
supported by progressively acquiring certification of
management systems relevant to the most critical
dimensions of our ESG performance.
Allied to our role as a responsible corporate citizen,
is our commitment to the 10 principles advocated
by the International Council of Metals and
Minerals (ICMM) as well as our adherence to the
principles of the United Nations Global Compact.
We also take cognisance of the United Nations
Sustainable Development Goals (SDGs) which
are addressed throughout the various sections in
“How we performed” in this integrated report.
154
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION STRATEGY AND PERFORMANCE
King IV recommends that the governing body
should appreciate that the organisation’s
core purpose, its risks and opportunities,
strategy, business model, performance and
sustainable development are all inseparable
elements of the value creation process.
The Board contributes to and approves the
mission, vision and strategy of the company.
The Board satisfies itself that the strategy
and business plans do not give rise to risks
that have not been thoroughly assessed by
management and considers sustainability as
a business opportunity that guides strategy
formulation.
The Group’s strategy is consistent with
integrated thinking, which links different
capitals and ensures sustainable outcomes.
The Board participates in an annual strategy
session, in which the Board deliberates
on the Group’s strategy, assesses risks
and opportunities, considers progress of
implementation of the strategy and ensures
that it is in line with Group values and
ensures long term success and sustainability
of the Group.
RELATIONSHIPS AND
STAKEHOLDER ENGAGEMENT
Effective and ongoing stakeholder
engagement is essential in identifying
potentially material issues and risks and
to manage stakeholder expectations.
Constructive, meaningful, transparent
relationships with stakeholders are vital
to retaining our social and legal license to
operate. The Board, assisted by the Audit,
Social and Ethics, Safety and Health, and
the Risk committees, has oversight of
stakeholder engagement and its role in the
management and mitigation of material
issues and risks. Stakeholder engagement is
guided by our Code of Ethics.
A comprehensive communications strategy,
together with a stakeholder engagement
policy, is in place to oversee stakeholder
engagement and manage expectations. As
a responsible corporate citizen, Sibanye-
Stillwater fosters and maintains constructive
engagement with all stakeholders in order
to fulfil our vision to improve lives and to
deliver on our strategy and to create value
by maintaining our social licence to operate,
for our long-term success and sustainability.
See Stakeholder engagement, Managing
risks and opportunities, Social upliftment and
community development, Superior value for
our workforce, Ensuring safe production,
Occupational health and well-being and
Minimising the environmental impact for
further detail
TAX GOVERNANCE
In line with commitments to responsible
corporate citizenship and ethical value
creation, Sibanye-Stillwater strives to arrange
its tax affairs effectively and efficiently and to
act in good faith, by complying with current
laws in the jurisdictions in which it operates.
We have adopted a conservative approach
to tax risk management, understanding our
responsibility to pay our tax.
The Group recognises the importance of an
effective and efficient tax risk management
framework to promote governance, address
tax risk and create superior value. Our tax
strategy provides a Board-approved tax
governance framework through which
our tax obligations and associated risk are
managed, reported and monitored. The
framework is based on good corporate tax
citizenship and is aligned with the principles
of King IV. The Group uses a decentralised
model to ensure compliance with the current
laws in the jurisdictions in which we operate.
Our tax strategy is supported by a tax policy
which is an operational document detailing
processes and policies to ensure the effective
implementation and compliance.
Ultimately, the Board is accountable for tax
governance and must provide oversight of
how tax is managed within the organisation
by managing key stakeholders’ concerns,
overall tax risk and delegating authority for
the management of tax. In this, the Board
is supported by the Audit Committee, Risk
Committee and the Executive Committee.
Sibanye-Stillwater currently has no
subsidiaries operating in tax havens. It is also
not Sibanye-Stillwater’s intention to start
operating in tax havens.
Overview of the tax landscape
Sibanye-Stillwater contributes directly to tax
authorities and other regulators by way of
taxes borne and taxes paid in the jurisdictions
in which it operates, enabling governments
to provide social infrastructure and services.
Effectiveness of stakeholder engagements
is monitored by the Social and Ethics
Committee.
To deal effectively with uncertainty in the tax
landscape in these jurisdictions and to meet
objectives and stakeholder expectations,
the Group follows a continuous, proactive
and dynamic process to monitor both
local and international tax developments
and to identify, understand, manage and
communicate tax risks that may impact the
Group’s objectives as set out in the Enterprise
Risk Management Framework (ERMF).
In monitoring all tax positions, the Group
further monitors developments in the
international tax landscape, and with
specific reference to the Base Erosion and
Profit Shifting (BEPS) programme. The
Group, in response and in adherence to the
BEPS programme, and the South African
Revenue Service (SARS) Country-by-Country
(CbC) Reporting requirement, submitted its
CbC report for the 31 December 2017 year
of assessment on 28 December 2018.
The Group acknowledges that the continued
focus on the extractive industry, influenced
by political changes and the complexity of
the operating environment, may give rise to
a challenging fiscal environment.
VALUE CREATION AND REPORTING
The Board is committed to good governance
while directing and guiding the Group to
deliver on its strategic objectives and to create
value. We actively integrate our stakeholder
engagement, material risk and opportunity
evaluation, strategy, business model
and performance to create value for our
shareholders and stakeholders. We commit to
transparent reporting that focuses on:
• our strategy and value creation process
in compliance with the requirements of
the exchanges on which we are listed and
best practice;
• providing stakeholders and the financial
investment community with clear, concise,
accurate and timely information on Sibanye-
Stillwater’s operations and results; and
• reporting integrated information to
shareholders on Sibanye-Stillwater’s
financial and sustainability performance.
Our suite of annual reports includes this
integrated report, which is our primary
report, a mineral resource and reserve
report, the financial report and a company
financial report. All reports are reviewed and
approved by the Audit Committee on behalf
of the Board.
Sibanye-Stillwater Integrated Report 2018 155
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
OUR BOARD, GOVERNANCE STRUCTURES AND PROCESSES
Sello
Moloko
Neal
Froneman
Charl
Keyter
Timothy
Cumming
Barry
Davison
Savannah
Danson
Harry
Kenyon-Slaney
Richard
Menell
Nkosemntu
Nika
Keith
Rayner
Susan
van der Merwe
Jerry
Vilakazi
Leadership by
our Board is vital
to achieving our
strategic objectives.
Our Board has a unitary
structure and is led by an
independent Chairman with
the roles of the CEO and the
Chairman being separate.
Collectively, the directors have
the breadth and depth of skills,
knowledge and experience
required to effectively discharge
their duties and responsibilities.
This enables the making of
informed, objective decisions,
providing effective governance
and making a positive
contribution to value creation.
156
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CHAIRMAN
SELLO MOLOKO (53)
BSc (Hons) and Postgraduate Certificate in Education,
Advanced Management Programme
Appointed non-executive chairman of the Board on
1 January 2013.
Chairman:
Nomination and Governance Committee
Member:
• Remuneration Committee
• Safety and Health Committee
• Social and Ethics Committee
EXECUTIVE DIRECTORS
NEAL FRONEMAN (59)
Chief Executive Officer
BSc Mech Eng (Ind Opt), BCompt, Pr Eng
Appointed an executive director and CEO on
1 January 2013.
Chairman: Executive Committee
Member:
• Risk Committee
• Safety and Health Committee
CHARL KEYTER (45)
Chief Financial Officer
BCom, MBA, ACMA and CGMA
Appointed a director on 9 November 2012, and
executive director and CFO on 1 January 2013.
Member: Executive Committee
INDEPENDENT NON-EXECUTIVE DIRECTORS
TIMOTHY CUMMING (61)
BSc (Hons) (Engineering), BA (PPE), MA
Appointed as a non-executive director on
21 February 2013.
Chairman: Remuneration Committee
Member:
• Audit Committee
• Risk Committee
• Social and Ethics Committee
SAVANNAH DANSON (50)
BA (Hons) Communication Science and Finance, MBA,
Strategic Planning and Finance
Appointed as a non-executive director on 23 May 2017.
Member:
• Audit Committee
• Remuneration Committee
• Safety and Health Committee
HARRY KENYON-SLANEY (58)
BSc (Hons) (Geology), International Executive
Programme
Appointed non-executive director on
16 January 2019.
RICHARD MENELL (63)
MA (Natural Sciences, Geology),
MSc (Mineral Exploration and Management)
Appointed as a non-executive director on
1 January 2013.
Chairman: Risk Committee
Member:
• Audit Committee
• Nominating and Governance Committee
• Safety and Health Committee
• Social and Ethics Committee
NKOSEMNTU NIKA (60)
BCom, BCompt (Hons), Advanced Management
Programme, CA (SA)
Appointed as a non-executive director on
21 February 2013.
Member:
• Audit Committee
• Nominating and Governance Committee
• Remuneration Committee
• Social and Ethics Committee
KEITH RAYNER (62)
BCom, CTA, CA (SA)
Appointed as a non-executive director on
1 January 2013.
Chairman: Audit Committee
Member:
• Remuneration Committee
• Risk Committee
• Social and Ethics Committee
SUSAN VAN DER MERWE (64)
BA
Appointed as a non-executive director on
21 February 2013.
Member:
• Audit Committee
• Nominating and Governance Committee
• Risk Committee
• Safety and Health Committee
JERRY VILAKAZI (58)
BA, MA, MBA
BARRY DAVISON (73)
BA (Law and Economics), Graduate Commerce Diploma,
CIS Diploma in Advanced Financial Management and
Advanced Executive Programme
Appointed as a non-executive director on
1 January 2013.
Chairman: Social and Ethics Committee
Appointed as a non-executive director on
21 February 2013.
Chairman: Safety and Health Committee
Member:
• Nominating and Governance Committee
• Remuneration Committee
• Risk Committee
• Social and Ethics Committee
Member: Nominating and Governance Committee
Detailed curriculum vitae of Board members
are available on the corporate website at
www.sibanyestillwater.com
BOARD CHARTER
Sibanye-Stillwater’s ability
to deliver on its purpose,
mission and strategic
objectives is underpinned
by the quality and expertise
of its leadership. The Board
provides sound, effective,
ethical leadership and
strategic guidance, ensuring
that the principles of
good governance are the
foundation of all that we do
and ensuring appropriate
business and financial risk
management is in place.
The Board charter sets out
the Board’s responsibilities,
authority and mandate. The
Board charter is reviewed
annually and is aligned with
the Companies Act 71 of
2008, as amended, King IV,
JSE Listings Requirements
and the NYSE Listed
Company Manual. The
Charter can be accessed
through https://www.
sibanyestillwater.com/about-
us/corporate-governance
Key areas of Board
deliberation in 2018
• Safety
• Deleveraging of balance
sheet
• Proposed Lonmin
acquisition
• Strike at SA gold
operations
Planned areas of
focus for 2019
• Completion of proposed
Lonmin acquisition and
integration
• Ethics and value-driven
performance
• Continue current safe
production strategy
Sibanye-Stillwater Integrated Report 2018 157
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
NOMINATING AND
GOVERNANCE COMMITTEE
Chairman: Sello Moloko
Develops our approach to matters relating
to corporate governance and makes
recommendations to the Board on all such
matters, while keeping abreast of best
practice. Monitors and evaluates effectiveness
and composition of the Board and its
committees while planning for director and
senior executive succession planning
Members: Barry Davison, Rick Menell,
Nkosemntu Nika, Jerry Vilakazi and
Susan van der Merwe
No. of meetings annually: four
No. of meetings in 2018: four
OUR BOARD AND ITS COMMITTEES
AUDIT COMMITTEE
RISK COMMITTEE
Chairman: Keith Rayner
Chairman: Rick Menell
Ensures financial sustainability of the Group
by monitoring and reviewing financial
controls and procedures, as well as the
effectiveness and integrity of internal audit
and control systems. Appoints independent,
external auditor. Oversees regulatory and
legislative compliance
Members: Tim Cumming,
Savannah Danson, Rick Menell,
Nkosemntu Nika and Susan van der Merwe
No. of meetings annually: six
No. of meetings in 2018: eight
Ensures sustainability of the Group by
evaluating and overseeing implementation
of efficient risk management processes and
controls to identify, monitor and mitigate
risks and to act on opportunities identified
Members: Barry Davison, Tim Cumming,
Neal Froneman, Keith Rayner and
Susan van der Merwe
No. of meetings annually: two
No. of meetings in 2018: two
Board
Chairman: Sello Moloko
Has ultimate responsibility for providing
solid ethical leadership and strategic guidance,
ensuring that the principles of good corporate
governance underpin all that we do and all decisions
made in delivering on our strategic objectives
Members: 10 non-executive directors and
two executive directors
No. of meetings annually:
four and one strategy session
No. of meetings in 2018:
seven and one strategy session
All Board members attended
all meetings in 2018
REMUNERATION
COMMITTEE
SAFETY AND HEALTH
COMMITTEE
SOCIAL AND ETHICS
COMMITTEE
Chairman: Tim Cumming
Chairman: Barry Davison
Chairman: Jerry Vilakazi
Ensures payment of fair rewards to attract,
retain and motivate executive management
with the skills and experience necessary
to support and sustain the company and
its strategy, and evaluates performance in
relation to reward
Ensures adherence to occupational health
and safety laws, regulations and external
standards, reviews relevant policy and
monitors performance of related key
indicators so as to minimise mining-related
accidents and their impacts.
Members: Savannah Danson, Barry Davison,
Sello Moloko, Nkosemntu Nika and
Keith Rayner
Members: Savannah Danson,
Neal Froneman, Rick Menell, Sello Moloko
and Susan van der Merwe
No. of meetings annually: four
No. of meetings annually: four
No. of meetings in 2018: five
No. of meetings in 2018: four
Supports and assists the Board in
ensuring compliance with best practice
recommendations relating to the ethical
conduct of our stakeholder engagement.
Oversees and monitors anti-corruption policy
and performance, the company’s standing
as a responsible corporate citizen particularly
in relation to the Code of Ethics. Monitors
compliance in terms of UNGC
Members: Tim Cumming, Barry Davison,
Rick Menell, Sello Moloko,
Nkosemntu Nika and Keith Rayner
No. of meetings annually: four
No. of meetings in 2018: four
158
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CHARACTERISTICS OF OUR BOARD
Independence and size
Expertise and experience
Independent,
non-executive
chairman
12 DIRECTORS
10 independent,
non-executive
directors
Unitary Board
Gender diversity*
Target: Adopted the
Mining Charter 2018
gender target of 20%
female representation
at Board level as the
organisation’s gender
policy
* See Gender and race
diversity policy in Corporate
governance
Age
Target: Currently, the
approved retirement
age for non-executive
directors is 72 years
of age. The Board
has reserved the right
to extend this to 75,
provided the member is
available and fit to carry
out duties
Independence*
Target: A Board with an appropriate balance of knowledge,
experience and skills in areas pertinent to Sibanye-Stillwater
Achieved: Relevant expertise and experience
17
%
83
Independent non-executive directors
Executive directors
Racial diversity*
By gender
By historically disadvantaged
South African (HDSA)
17
%
83
Male
Female
8
%
58
34
HDSAs
Other South Africans
Other
Succession and rotation
By age
By tenure
8
59 %
33
17
%
83
Less than 50 years of age
Between 50 and 60 years of age
More than 60 years of age
6 years
<2 years
Target: Adopting the
Mining Charter 2018
diversity target of 50%
at Board level as the
organisation’s race policy
* See Gender and race
diversity policy in Corporate
governance
Target: Director rotation
ensures a fresh perspective
while maintaining continuity
of skills, institutional and
industry knowledge and
experience.
Rotation: Barry Davison
will retire at the AGM and is
not available for re-election,
Neal Froneman, Nkosemntu
Nika and Susan van der
Merwe retire by rotation
and are up for re-election at
the May 2019 AGM. New
director Harry Kenyon-
Slaney will also be elected.
Sibanye-Stillwater Integrated Report 2018 159
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
“The Board has
adopted the
Mining Charter
2018 gender and
race targets at
Board level as our
gender and race
diversity policy.”
GENDER AND RACE DIVERSITY POLICY
The Board has adopted the Mining Charter 2018
gender and race targets at Board level as the
Company’s gender and race diversity policy. These
are only effective from the 1 March 2019. The
Social and Ethics Committee together with the
Nominating and Governance Committee will be
monitoring and reporting on the progress made in
this regard.
Within five years, the Board will comprise a
minimum of 50% historically disadvantaged
persons – 20% will be women.
During 2018, the Nominating and Governance
Committee actively sought female directors to
join the Board. These efforts were, however,
unsuccessful. The Board, together with Social
and Ethics Committee and the Nominating and
Governance Committee, will continue pursuing
gender diversity at all levels of the organisation.
One of the focus areas for the Social and Ethics
Committee during 2018 was women in mining,
women in management and assisted by the
Remuneration Committee, gender pay parity.
BOARD EFFECTIVENESS AND
PERFORMANCE EVALUATIONS
At the beginning of 2017, an external consultant
was appointed to independently review the
Board’s effectiveness. The exercise reviewed the
composition of the Board, its attributes and
succession planning following the expansion and
diversification of the company and concluded
that there was a need for an additional director
with international, US and PGM experience.
Accordingly, the Board mandated the CEO to
search for a suitable candidate. This resulted in
Mr Harry Kenyon-Slaney being appointed an
independent non-executive director on
17 January 2019.
As recommended by King IV, the Board and its
committees for 2018, undertook an internal
self- assessment. An external assessment will be
undertaken in 2019. The results of the internal
assessment indicated that all Board members
have a clear understanding of the organisation’s
core business, its strategic direction and the
financial and human resources necessary to meet
its objectives. The Board devotes quality time to
reviewing the implementation of strategy.
Members agreed that the Charter of the Board is
clear and covers all appropriate areas and has been
complied with, to the fullest extent. The Board was
satisfied with the effectiveness and contribution
of each of its committees. The Board committees
were functioning efficiently and leadership of all
the Committees is effective. Continuing education
of committee members was an area recommended
for improvement.
The size of the Board is considered to be optimal
to give every member an opportunity to participate
and contribute. The composition of the Board
is appropriate in terms of skills, knowledge,
experience and qualifications. This is further
enhanced by the recent appointment of Mr Harry
Kenyon-Slaney, a seasoned mining executive with
multinational experience.
In terms of diversity, members noted that there is
a need to address the gender aspect. There are
currently two female Board members and directors
agree more needs to be done in this area.
The Board is satisfied that the evaluation process
improves performance and effectiveness.
160
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION In addition, the following evaluations were conducted during 2018:
Leadership role
Description of responsibilities
Outcome and recommendations
Succession planning
Chairman
Leads the Board and ensures integrity
and effectiveness of Board and
committees, and high standards of
governance and ethical behaviour
CEO
CFO and
the Finance
Function
Internal Audit
and Chief Audit
Executive (CAE)
Company
Secretary
• Provides leadership in the area
of policy and strategic direction
and provides management with
comprehensive information, analysis
and timely advice on all aspects of
the business;
• Leads and manages the daily
operations
• Providing leadership, direction and
management of the finance and
accounting team
• Providing strategic
recommendations to the CEO/
president and members of the
executive management team
• Managing the processes for financial
forecasting and budgets, and
overseeing the preparation of all
financial reporting
• Advising on long-term business and
financial planning
• Reviewing all formal finance, and IT
related procedures
• Sets auditing strategies and goals,
overseeing implementation and
schedules.
• Oversee staff, mentoring and
developing their skills.
• Identify and implement control and
compliance initiatives across the
organization.
• Conduct audits, communicate with
departments, and report on audit
results.
• Providing the directors of the
company collectively and individually
with guidance as to their duties,
responsibilities and powers
• Making the directors aware of any
law relevant to or affecting the
company
• Responsible for the efficient
administration of the Company,
and for ensuring compliance
with statutory and regulatory
requirements in particular
• Members of the Board were satisfied
with the performance and leadership
of the Chairman.
• Annual reappointment of the chairman
was undertaken, with Mr Moloko
being reappointed as Chairman of the
Board for the ensuing year.
• The Board was satisfied with the
performance of the CEO against
agreed upon performance measures
and targets.
• The Remuneration Committee further
performed annual review of the CEO’s
dual contract and approved it for the
ensuing year.
Succession planning of the
Chairman was discussed both in
the context of internal and external
candidates.
Succession planning for the CEO
was discussed and potential
candidates for development and
succession were noted.
In terms of the JSE Listings Requirements
and King IV, the Audit Committee noted
that it was satisfied that the financial
director has the appropriate expertise and
experience to fulfil his role and that the
Finance Function was effective.
Succession planning for the CFO
was noted and additional work was
to be undertaken.
In terms of King IV, the Audit Committee
noted that it was satisfied that the CAE
had the necessary competence, gravitas
and objectivity.
Successors have been identified and
are being groomed.
• In compliance with paragraph 3.84(h)
of the JSE Listings Requirements. In
its assessment, the Board considered
the recommended practices of King IV
and satisfied itself that the company
secretary is competent, qualified
and has the necessary expertise and
experience to fulfil the role.
• The company secretary is not a director
of the Group and has an arm’s-length
relationship with the Board
The appointment of Lerato Matlosa
as Company Secretary on the
retirement of Cain Farrel was
included in the succession plan
approved by the Board in line with
Cain Farrel’s KPIs.
Sibanye-Stillwater Integrated Report 2018 161
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
BOARD COMMITTEES
AUDIT COMMITTEE
The Audit Committee Terms of Reference can be found on https://www.sibanyestillwater.com/about-us/corporate-governance
Membership of and attendance at Audit Committee meetings (2018)
Member
Keith Rayner
(Chairman)
Tim Cumming
Savannah Danson
Rick Menell
Nkosemntu Nika
Susan van der Merwe
Independent
non-executive
director
Appointed to
the committee
Expertise and experience in:
• Corporate finance and accounting
✔
✔
✔
✔
✔
✔
1 January 2013
• Executive management and governance
• Regulatory compliance
• Engineering in the mining industry
30 May 2018
• Leadership and strategic development
• Financial services
23 May 2017
• Communication, finance, mining and infrastructure management
• All aspects of the mining industry, operationally and at executive
1 January 2013
• Geology
management and Board level
• Financial management
21 February 2013
21 February 2013
• Finance and accounting at both private and public sector
organisations
• Diplomacy, foreign affairs, liaison at highest levels of government
and regulators
Meeting
attendance
8/8
3/3
8/8
8/8
8/8
8/8
In terms of the Companies Act, the Board will recommend members of the Audit Committee for re-election by shareholders at the AGM.
2018: How committee contributed to value creation
2019: Planned areas of focus
• Reviewed and approved the integrated annual report, annual financial statements, interim
financial statements and other financial information for publication
• Monitored integrity of internal controls, internal financial controls and financial risk
management systems to safeguard assets
• Monitored and reviewed the independence and effectiveness of internal audit function
• Assessed the suitability of external auditors and recommended appointment of new
external auditors for appointment by shareholders
• Monitored the performance of information and communication technology
• Addressed all internal audit and SOX findings
• Deleveraging initiatives
• Assessed the CFO and Head of Audit
• The Audit Committee held additional two meetings during the year to discuss the KPMG
issues, which later led to KPMG being replaced by EY
Please refer to the detailed report of the Audit Committee contained in the Annual Financial
Report available as part of the suite of reports on www.sibanyestillwater.com
• Review and approval of deleveraging
initiatives
• Consolidated reporting – DRDGOLD and
Lonmin (following completion of the
proposed acquisition)
162
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION RISK COMMITTEE
The Risk Committee Terms of Reference can be found on https://www.sibanyestillwater.com/about-us/corporate-governance
Membership of and attendance at Risk Committee meetings (2018)
Member
Rick Menell
(Chairman)
Barry Davison
Neal Froneman
Tim Cumming
Keith Rayner
Savannah Danson
Susan van der Merwe
Independent
non-executive
director
Appointed to
the committee
Expertise and experience in:
• All aspects of the mining industry, operationally and at executive
Meeting
attendance
✔
✔
✔
✔
✔
✔
✔
1 January 2013
• Geology
management and Board level
• Financial management
• All aspects of the PGM mining industry, operationally and at
30 May 2018
executive management and Board levels
30 May 2018
• Financial management
• Operations management
• Mergers and acquisitions
• Engineering in the mining industry
13 February 2013
• Leadership and strategic development
• Financial services
• Corporate finance and accounting
1 January 2013
• Executive management and governance
• Regulatory compliance
23 May 2017
• Communication, finance, mining and infrastructure management
21 February 2013
• Diplomacy, foreign affairs, liaison at highest levels of government
and regulators
2/2
1/1
1/1
2/2
2/2
2/2
2/2
2018: How committee contributed to value creation
• With the changing political landscape and continued depressed commodity prices, country
and global risks were reviewed by the committee
• US operations specific risks were reviewed in detail
Areas of focus
Integration risks
Sibanye-Stillwater Integrated Report 2018 163
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
NOMINATING AND GOVERNANCE COMMITTEE
The Nominating and Governance Committee Terms of Reference can be found on https://www.sibanyestillwater.com/about-us/corporate-
governance
Membership of and attendance at Nominating and Governance Committee meetings (2018)
Member
Sello Moloko
(Chairman)
Barry Davison
Rick Menell
Nkosemntu Nika
Jerry Vilakazi
Susan van der Merwe
Independent
non-executive
director
Appointed to
the committee
Expertise and experience in:
Meeting
attendance
✔
✔
✔
✔
✔
✔
1 January 2013
• Financial and executive management
• All aspects of the PGM mining industry, operationally and at
21 February 2013
executive management and Board levels
• Financial management
• All aspects of the mining industry, operationally and at executive
management and Board levels
1 January 2013
• Geology
• Financial management
21 February 2013
• Executive management, finance and accounting at both private
and public sector organisations
• Strategic investments
1 January 2013
• Shaping major public service policies in post-1994 South Africa
• Advocacy
30 May 2018
• Diplomacy, foreign affairs, liaison at highest levels of government
and regulators
4/4
4/4
4/4
4/4
4/4
2/2
2018: How committee contributed to value creation
2019: Planned areas of focus
• To address gender diversity, the Committee actively looked for women directors on the
Board
• Recommended gender policy to the Board
• Review of Board age limits
• Review of Board and Committee charters
• Board and Board Committee performance review
• Appointment of an additional independent non-executive director with international and
US experience
• Review and approval of succession plans for the CEO, CFO and Board Chairman
• Reviewed new legislation
• Jurisdictional governance and compliance
• Gender diversity
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION COMMITTEE
The Remuneration Committee terms of Reference can be found on https://www.sibanyestillwater.com/about-us/corporate-governance
Membership of and attendance at Remuneration Committee meetings (2018)
Member
Tim Cumming
(Chairman)
Barry Davison
Savannah Danson
Sello Moloko
Nkosemntu Nika
Keith Rayner
Independent
non-executive
director
Appointed to
the committee
Expertise and experience in:
• Engineering in the mining industry
✔
✔
✔
✔
✔
✔
13 February 2018
• Leadership and strategic development
• Financial services
• All aspects of the PGM mining industry, operationally and at
23 May 2017
executive management and Board levels
• Financial management
21 February 2013
• Communication, finance, mining and infrastructure management
21 February 2013
• Financial and executive management
1 January 2013
• Finance and accounting at both private and public sector
organisations
• Corporate finance and accounting
1 January 2013
• Executive management and governance
• Regulatory compliance
Meeting
attendance
5/5
5/5
5/5
5/5
4/5
5/5
2018: How committee contributed to value creation
2019: Planned areas of focus
• Review and approval of executive remuneration for annual STI and LTI awards plus base pay
adjustments
• Review of STI performance framework for 2018 (KPIs and BSCs)
• Review of gender pay parity
• Review of suitable ‘remuneration fairness’ indicators for on-going analysis
• Initiation of a Minimum Shareholding Requirement (MSR) policy for top executives
• Approval of executive manager appointments and remuneration
• Formalisation of a basis for adjusting STI targets
• Review of Remuneration Report relative to King IV code
• Review and revision of Terms of Reference
• Engagement with institutional investors
See Remuneration report from page 176 for more details
• Lonmin integration (following completion
of the proposed acquisition) and new
management structure
• Further review of Performance Conditions
for vesting of Conditional (LTI) shares
• Determination of applicable Performance
Conditions for any matching shares
applicable to MSR holdings built up by
executives
Sibanye-Stillwater Integrated Report 2018 165
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
SAFETY AND HEALTH COMMITTEE*
The Safety and Health Committee terms of Reference can be found on https://www.sibanyestillwater.com/about-us/corporate-governance.
Membership of and attendance at Safety and Health Committee meetings (2018)
Member
Barry Davison
(Chairman)
Savannah Danson
Neal Froneman
Rick Menell
Sello Moloko
Susan van der Merwe
Independent
non-executive
director
Appointed to
the committee
Expertise and experience in:
• All aspects of the mining industry, operationally and at executive
Meeting
attendance
✔
✔
✔
✔
✔
✔
21 February 2013
management and Board levels
• Financial management
30 May 2018
• Communication, finance, mining and infrastructure management
1 January 2013
• Operations management
• Mergers and acquisitions
• All aspects of the mining industry, operationally and at executive
management and Board levels
1 January 2013
• Geology
• Financial management
1 January 2013
• Financial and executive management
21 February 2013
• Diplomacy, foreign affairs, liaison at highest levels of government
and regulators
4/4
2/2
4/4
4/4
4/4
4/4
* Although this committee met four times during the year, the entire Board held additional meetings to discuss safety related matters.
2018: How committee contributed to value creation
2019: Planned areas of focus
• Safety performance
• New ways of working safely
• Engagement with stakeholders and mining authorities
Implementation of enhanced safety plans
Much work was done in 2018 to address the Group’s anomalous safety performance. For further detail on this work see Ensuring safe
production and Occupational health and well-being from page 102 in this report.
166
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SOCIAL AND ETHICS COMMITTEE
The Social and Ethics Committee terms of Reference can be found on https://www.sibanyestillwater.com/about-us/corporate-governance.
Membership of and attendance at Social and Ethics Committee meetings (2018)
Member
Jerry Vilakazi
(chairman)
Tim Cumming
Barry Davison
Rick Menell
Sello Moloko
Nkosemntu Nika
Keith Rayner
Independent
non-executive
director
Appointed to
the committee
Expertise and experience in:
• Strategic investments
✔
✔
✔
✔
✔
✔
✔
21 February 2013
• Shaping major public service policies in post-1994 South Africa
• Advocacy
• All aspects of the mining industry, operational, financial and at
executive management and Board levels
• All aspects of the mining industry, operationally and at executive
management and Board levels
• Financial management
• All aspects of the mining industry, operationally and at executive
management and Board levels
1 January 2013
• Geology
1 January 2013
30 May 2018
• Financial management
• Financial and executive management
• Executive management, finance and accounting at both private
and public sector organisations
• Corporate finance and accounting
21 February 2013
• Executive management and governance
• Regulatory compliance
Meeting
attendance
4/4
4/4
4/4
4/4
4/4
2/2
4/4
2018: How committee contributed to value creation
2019: Planned areas of focus
• Reviewed and monitored compliance to employment equity targets
• Monitoring of adherence to the Code
• Reviewed and monitored compliance to BEE and procurement
• Reviewed and implemented recommendation from the Gender Commission report
• Women in mining
• Review of the gender pay parity
• Approved the revised Code of Ethics
of Ethics
• Gender policy at all levels of the
organisation
• Environmental, social and governance
(ESG) and the Sustainable Development
Goals (SDGs) reporting
Sibanye-Stillwater Integrated Report 2018 167
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
REPORT OF THE
SOCIAL AND ETHICS
COMMITTEE
In the coming year,
the Committee will
focus on monitoring of
adherence to the Code
of Ethics, compliance and
improvements to the gender
policy at all levels of the
organisation.
The Sibanye-Stillwater Social and Ethics Committee
(the Committee) is a statutory committee which
assists the Board in monitoring the Group’s
corporate citizenship, environmental, social and
governance (ESG), Sustainable Development Goals
(SDGs), sustainability and ethics.
The committee is governed by Terms of Reference
which detail its duties in terms of the Companies
Act 71 of 2008, as amended (the Companies
Act) , the JSE Listings Requirements and King IV,
as well as responsibilities allocated to it by the
Board. These Terms of Reference can be found
on the Company’s website by following this link
www.sibanyestillwater.com/about-us/corporate-
governance
Our approach is to go beyond compliance by
seeking to create value for all our stakeholders
and to ensure meaningful transformation
This report is presented in accordance with the
requirements of the Companies Act.
A lot of effort has gone into our
enterprise development programme
DISCHARGING ITS DUTIES
DURING THE YEAR
In the previous report, we reported that the
Group complied with the statutory requirements
while still addressing some backlog regarding
employment equity, supply chain and social and
labour plan targets. We are pleased to report that
during 2018, the Group has made good progress
in each of these areas, noting that our approach
is to go beyond compliance by seeking to create
value for all our stakeholders and to ensure
meaningful transformation.
However, we still have areas of concern, regarding
employment equity and local procurement. While
we are implementing an attraction and retention
strategy that will address employment equity at
middle management level, we continue to face
a skills shortage. In terms of gender equality, the
Committee also spent considerable time reviewing
and implementing recommendations from the
Gender Commission report, women in mining and
gender pay parity. A programme that addresses all
the barriers towards achieving employment equity,
is in place.
In our endeavour to include local small to medium
enterprises and black-owned businesses in our
supply chain, we have increased our procurement
spend with these businesses. In addition, a lot of
effort has gone into our enterprise development
programme on activities such as commodity
ring-fencing, training and development and small,
medium and micro enterprise (SMME) financial
and business support.
We have a minimal backlog in our social and
labour plans, which is being addressed to ensure
continued benefits to the communities around our
operations.
In the coming year, the Committee will focus
on monitoring adherence to the Code of Ethics,
compliance and improvements to the gender policy
at all levels of our ESG performance and the SDGs.
Jerry Vilakazi
Chairman: Social and Ethics Committee
29 March 2019
Jerry Vilakazi
Chairman:
Social and Ethics Committee
168
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION GOVERNANCE FRAMEWORK
A Group governance framework is in place and is continuously being evolved and developed as the business grows. The framework takes into
account the existing structures being SA gold, SA PGM and US PGM. It guides the following matters:
• leadership and governance
• strategy development and performance management
• monitoring and oversight
• application of Group policies
• delegation of Authority and Reserved Powers
• operating across jurisdictions
• implementation across the different structures, joint ventures and associates
In the near future, we will focus on:
• refining and aligning of the governance framework as the Group management structure evolves
• alignment of Lonmin into the Group governance and management framework following completion of the proposed acquisition
In addition, in order to fully comprehend the business and the changing environment in which Sibanye-Stillwater operates, the Board has
resolved to hold one additional meeting per quarter in order to do an in-depth review of each of the operations.
FUNCTIONAL GOVERNANCE
RISK AND OPPORTUNITY
Which committees have oversight: Audit Committee and Risk Committee
Our risk management framework and processes involve the systematic application of management policies, procedures and practices. It sets
out the requirements for effective oversight of risks and ensuring effective integration with the development and execution of Group strategy.
The framework includes identifying, assessing, evaluating, mitigating and reporting of risks. This process also includes communicating,
consulting and establishing the context for risk, and for opportunity. Operationally, internal audit works closely with the risk management
team. Sibanye-Stillwater’s risk-management framework and processes, including related policies, procedures and practices, are reviewed
annually by the Risk Committee, prior to approval by the Board.
For more effective risk oversight of our risks and risk management, the Audit Committee chairman is a member of the Risk Committee, with
the Risk Committee chairman being a member of the Audit Committee.
The Board is satisfied that Sibanye-Stillwater’s governance, risk management, compliance, internal control as well as internal audit processes
operated effectively for 2018. Business activities were managed within approved risk-tolerance and risk-appetite levels. Primary controls were
implemented and continuous reviews undertaken to refine and improve them.
For further detail on our risk management framework and processes and the most significant risks and opportunities identified in 2018, see
Managing our material risks and opportunities (from page 40) and the Audit Committee chairman’s report in the Group Annual Financial Statements
at www.sibanye-stillwater.com as well as the Risk Committee chairman’s report (the full version of which is available online at
www.sibanye-stillwater.com).
Sibanye-Stillwater Integrated Report 2018 169
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
TECHNOLOGY AND INFORMATION
Which committees have oversight: Audit Committee and Risk Committee
The governance and management of information and related communication technologies (ICT) have become increasingly critical as our
dependence on the use of technology to share and collect information – email communication; the electronic exchange of documents and
information with suppliers, employees and many others; and the storage of data and information – that is vital to the efficient conduct of our
business.
Security of our ICT systems, which apply innovative technology to enhance operational and knowledge performance to enable continuous
business improvement, is essential. Our ICT risk governance framework and strategy, which is reviewed annually was approved for 2019, are
aimed at minimising risk exposure and mitigating the risks. Cyber risk is strategic (external) rather than operational. An approved Group ICT
charter, aligned with King IV and including the US operations, has been approved by the Audit Committee.
Operationally, the CFO, supported by executive management, provides high-level direction for and approves Sibanye-Stillwater’s ICT strategy.
The SA and US operations have an appointed ICT manager. Oversight is provided by the Audit Committee with the Board having ultimate
responsibility.
Major achievements of 2018:
• Full integration of US operations infrastructure into corporate ICT architecture, to benefit from the Group established structures has been
completed. Migration of end user computers is scheduled for completion during 2019
• Increased digitalisation of systems remain a core focus for the IT team. Various robotics options are being investigated. A digitalisation
steering committee has been established which reports to the Board
• A co-partnership model was adopted with functional business owners in the development, implementation and execution of Business
Intelligence KPI measurements and enterprise reporting. This enabled a business model that break down the traditional ICT vs. Business
barriers whereby the former has an embedded role within the business
• A service efficiency centre established to deliver Group central services to mining operations on a 24/7 basis.. With the increased focus
around Cyber Security, the centre focus on monitoring and response to any immediate threat to the company IT system, The established
centre will deliver services to the SA and US operations.
• In addition to quarterly internal vulnerability tests, our ability to prevent and fight off hacking attacks was tested externally. This enabled us
to identify a hack and its extent, and to develop a response and related communications plan
• Exercise to determine and prioritise essential information and assets (“crown jewels”) to be protected was completed. A business impact
assessment of these assets, including reviews of recovery procedures and aligning security controls with information sensitivity, was also
undertaken and conducted across all business units. A remediation plan is being developed to prioritise security of key information
• Regular disaster recovery simulations conducted to test application of business impact assessment, the results which were documented
along with the lessons learnt. Following feedback, the current ICT application universe was reviewed for impact on availability. Plans are in
place to replicate applications with critical and high availability requirements at alternative data centres (Sibanye-Stillwater has three data
centres in the SA operations and one in the US operations)
• Work progressed on conversion of the corporate domain ICT infrastructure to a cloud-based system. Cloud-based systems enable the
outsourcing of data storage with safety ensured by the supplier and help to reduce the administrative burden relating to business continuity
and data recovery. Having completed the consolidation of all data for the SA operations during 2018, the next step will be migrating the
data centre facility to an external hosted facility. This externally hosted system will enable Sibanye-Stillwater to benefit from increased
bandwidth and availability and place it in a position to optimally support all central services to the SA and US operations
• The project to review the storage and keeping of information and records in line with the Protection of Personal Information Act (POPI)
continued and is being aligned with the European Union’s General Data Protection Regulations (GDPR). The cloud storage system will entail
management of the compliance risk of POPI and the GDPR
Additionally, technological innovation mining is an important aspect of our drive to deliver value by improving efficiencies and productivity at
our mining operations. The Safety and Health Committee has oversight of mining technology and innovation. For further information on what
was accomplished in the past year, see Technological innovation and modernisation on page 73.
OUTLOOK AND PLANS FOR 2019
• Planning for robotics and automation (in internal audit and tax functions, and increased automation in HR payroll, all aimed at driving
improved efficiencies
• Preparatory work on future integration of Lonmin into Sibanye-Stillwater’s ICT infrastructure has been conducted in readiness for approval of
its acquisition
170
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION COMPLIANCE
Which committees have oversight: Audit Committee, Risk Committee, Nominating and Governance Committee, Safety and Health Committee,
Social and Ethics Committee
Sibanye-Stillwater subscribes to a zero-tolerance policy in relation to non-compliance with laws, regulations, supervisory and other
requirements. Compliance Officers for the US and SA operations have responsibility for this.
Compliance risk comprises two elements: regulatory risk and reputational risk. Regulatory risk includes the penalties that Sibanye-Stillwater
and its operating entities may incur if they do not comply with all defined statutory, regulatory, supervisory and other requirements.
Reputational risk involves Sibanye-Stillwater being exposed to, for example, possible loss, resulting from damages to Sibanye-Stillwater’s
reputation.
Legislative and regulatory compliance is the responsibility of functional departments. The regional compliance functions assist by simplifying
legislation and alerting management to changes or pending legislative and regulatory changes. The compliance function’s mandate is to
facilitate the management of compliance risk by means of the effective distribution of a compliance methodology, compilation of regulatory
compliance risk profiles and to provide advice and guidance relating to strategic compliance issues.
Compliance risk profile sessions are held with business units on a bi-annual basis and conducted with the main aim of assigning responsibility
for all relevant compliance commitments, and to furnish the business with fit-for-purpose regulatory risk profiles, which highlight areas of
improvement. Any instances of non-compliance can be reported through the toll-free number, 0800 001 987.
There were no material or repeated regulatory penalties, sanctions or fines for contraventions of, or non-compliance with, statutory
obligations in 2018. Besides the revised Mining Charter released in September 2018, and revised JSE Listings Requirements, no new major
legislation was promulgated. Pending legislation includes:
• POPI (To safeguard personal information. A project to review the retention and storage of information and records in accordance with the
POPI continues, although regulations are not yet effective (also refer to Technology and Information section))
• Cybercrimes and Cybersecurity Bill 2017 (possible loss of information that might potentially lead to regulatory penalties and reputational
harm. Controls have been put in place to prevent and/or mitigate the consequences of a breach of our ICT systems)
• Carbon Tax Bill 2017 (financial impact)
• Expropriation Bill 2019 (subject to negotiations)
• Companies Amendment Bill, 2018 (the Bill seeks to review and identify all the problematic areas resulting from the implementation of the
Companies Act, 2008 and the Regulations as from May 2011)
• JSE consultation paper recommendations
In the US operations, the Tax Cuts and Jobs Act became effective January 1, 2018, This Act reduces the federal corporate income tax rate
to 21% from 35%. The rate change, together with other immaterial changes, resulted in a decrease in our US operations net deferred tax
liabilities of R2,532 million (US$205 million) and a corresponding deferred tax benefit in 2017. Federal income tax expense 2018 will be based
on the new rate. Also, on May 18, 2018, the Department of the Interior released its Final List of Critical Minerals, which designates PGMs as
“certain mineral commodities that are vital to the Nation’s security and economic prosperity.”
A change to New Jersey tax law beginning 1 January 2019, subjects almost all of the US operations’ consolidated income to New Jersey tax,
which will have a significant impact on the overall state cash taxes of the Group, as US operations revenue is recognised in New Jersey where
concentrate is sent for final refining. The US operations continue to proactively engage with outside experts to fully understand complicated
legislation changes, at federal and state level, and business optimisation activities continue in the US operations with the objective to add
value and ensure our structures and processes are efficient.
Sibanye-Stillwater Integrated Report 2018 171
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
REMUNERATION
Which committees have oversight: Remuneration Committee
Sibanye-Stillwater’s ability to attract, motivate and retain those with the talent and skills necessary, particularly at executive and senior
management levels, to enable delivery on our strategic vision in the short, medium and long term, hinges on our remuneration policy and
practices. It is thus essential to motivate and reward individual, team and operational performances to enable us to deliver on our strategic
objectives, with reasonably equitable remuneration underpinning our remuneration philosophy.
Detailed information on remuneration philosophy, policies and implementation of remuneration and significant developments of the past year
as well as intentions of the coming year, is available in the Remuneration Report. See also the summary of the Remuneration Committee in
this corporate governance section.
ASSURANCE
Which committees have oversight: Audit Committee and Risk Committee
The internal audit function objectively and independently assures the operating effectiveness of the internal control environment. Internal audit
uses predominantly in-house resources to conduct its internal audits. A risk-based internal audit plan linked to the combined assurance approach
was used during the year. This ensured that there was adequate co-ordination of internal and external audit assurances over strategic and
material issues. Reporting to the Audit Committee is done on a quarterly basis with the Vice President: Internal Audit (also the CAE) reporting to
the Audit Committee. Quarterly private sessions between the Vice President: Internal Audit and Audit Committee were held.
Independence and alignment with the Institute of Internal Auditors Professional Practices Framework, Standards and Ethics was externally
assessed during 2017. No adverse findings were raised and the internal audit department received a Generally Compliant rating which is the
highest rating that can be bestowed on an internal audit function.
For further information on assurance, see the reports on the Audit Committee and the Risk Committee in this corporate governance section.
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION EXECUTIVE
MANAGEMENT
Sibanye-Stillwater’s
executive committee
drives and oversees
implementation
of strategy. The
team includes two
executive directors.
The committee has
been restructured
in line with the
revised organisational
structure that
is based on
commodities rather
than regions.
EXECUTIVE
COMMITTEE
The executive
committee, which
comprises our
prescribed officers,
meets regularly to
discuss, plan and
make decisions on
the strategic and
operating issues
facing Sibanye-
Stillwater. As at
29 March 2019, the
committee was made
up as follows:
Neal Froneman (59)
Chief Executive Officer
Charl Keyter (45)
Chief Financial Officer
Robert van Niekerk (54)
EVP: SA PGM operations
Chris Bateman (53)
EVP: US PGM operations
Shadwick Bessit (56)
EVP: SA gold operations
Hartley Dikgale (59)
EVP: Legal and compliance
Dawie Mostert (49)
EVP: Organisational growth
Themba Nkosi (45)
EVP: Corporate affairs
Wayne Robinson (56)
EVP: Group technical
Richard Stewart (43)
EVP: Business development
EVP: Executive vice president
Detailed curriculum vitae of members of executive management are available on our website at
www.sibanyestillwater.com
Sibanye-Stillwater Integrated Report 2018 173
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION CORPORATE GOVERNANCE AND LEADERSHIP CONTINUED
IMPROVED GOVERNANCE AND OPERATIONAL MANAGEMENT
The organisational structure has been revised to better reflect the distinct requirements of the business. The new structure is
based on three distinct operating segments as follows:
Governance
and oversight
Sibanye-Stillwater
Board
Company
business strategy
Operating
segment deliver
strategy
CEO/CFO
Group Executive Committee
SA gold
Management Committee
SA PGM
Management Committee
US PGM
Management Committee
Department heads
Department heads
Department heads
Operational
delivery
Business units
and service areas
Business units
and service areas
Business units
and service areas
The advantages of this structure are:
• dedicated leadership to drive focused strategy for each business segment
• accommodates planned Lonmin acquisition
• team focused on restoring SA gold operations to profitability
• addresses the need for Group-wide strategies in critical areas
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Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION To strengthen and support the Executive Committee in addressing multi-disciplinary strategic issues effectively, we are establishing executive sub-
committees that include, as members, Group executives and other specialists. For the immediate future, these executive sub-committees listed in
the table below are based on priority areas of attention. These areas of focus will be amended as the strategic issues requiring attention evolve.
Group Executive Committee sub-committees
Committee
Participants
• Operating segment heads
• SA services integration
• Organisational growth
Organisational performance and review
• Business development
Organisational Culture
ESG
Technology and digitalisation
• Group technical
• Safety and health
• Investor relations
• Operating segment heads or nominees
• SA services integration
• Corporate affairs
• Safety, health and ESG
• Group strategy
• Operating segment heads or nominees
• Corporate affairs
• Governance and compliance
• Investor relations
• Bio-physical environment
• Operating segment heads or nominees
• SA services integration
• Business development
• Safety, health and ESG
Sibanye-Stillwater Integrated Report 2018 175
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT
PART 1: REMUNERATION COMMITTEE CHAIRMAN’S STATEMENT
Dear Shareholders
I am pleased, on behalf of the Group’s Remuneration Committee, to present our Remuneration Report for 2018.
The report is structured in three parts in line with King IV specifications, and comprises:
• This statement from the Chairman of the Remuneration Committee that provides background to our work over the year
• An overview of the main provisions of our Remuneration Policy which is based on our current remuneration philosophy and guides the related
remuneration framework
• A Remuneration Implementation report containing details of:
– remuneration awarded to executive directors and executive vice presidents of the Group, who collectively comprise our Prescribed Officers
(prescribed officers or executives)
– fees paid to non-executive directors during the 2018 financial year
This remuneration report is intended to present information on our remuneration policies and practices in a meaningful and transparent way
and to provide sufficient detail and explanation to enable you and other stakeholders to make an informed assessment of these policies and
their implementation.
We have noted the feedback received from certain stakeholders requesting additional detail and, with our desire to be responsive to our
stakeholders, we have continued to evolve our disclosure in line with changing best practice.
ADDRESSING SAFETY
Let me start by echoing what has already been addressed in other parts of this Integrated Annual Report, that 2018 was a year marred by two
particularly tragic and anomalous incidents which resulted in multiple losses of life at our SA gold operations. These tragic events, along with
other fatalities, occurred during the first half of the year but were in stark contrast to Sibanye-Stillwater’s prior safety record and the fatality
rate in the latter half of the year when the last four and half months of the year were fatality-free across the Group – which is a trend that has
continued into 2019.
Nonetheless, this prompted us to adjust the weight given to safety on the SA gold operations’ contribution to the Group’s Balanced Scorecard
for 2018.
The Group’s Balanced Scorecard focuses on four key result areas namely: safety, costs, production and sustainability (explained in more detail
further on in this report). Prior to the adjustment, safety carried a weighting of 25% of the total score at the SA gold operations, split equally
between the measurement of the fatal injury frequency rate (FIFR) and the serious injury frequency rate (SIFR). For the second half of 2018, we
decided to include the FIFR achieved in H2 as a specific additional measure (that is in addition to the four existing measures – which already
included the FIFR and the SIFR) and to give this a weighting of 20% (for the 2018 year only) at a more stretching FIFR target entailing a 30%
improvement in FIFR against the existing baseline.
Furthermore, in March 2019, when we had to determine what percentage of the March 2016 Share Awards would be allowed to vest in March
2019, we chose to invoke a discretionary adjustment that reduced the vesting percentage determined using the performance conditions by
20% in recognition of the increased number of fatalities in comparison with previous years, as a result of the two safety incidents.
In addition, in order to place specific emphasis on our desired culture of values-based decision-making in support of the highest levels of safe
production delivery, an objective evaluation of values alignment has been included, with significant weightings, in the 2019 individual scorecards
for all senior executives and top management levels.
We will continue to ensure that safety remains a foremost priority in our remuneration policies and will continue to investigate how
remuneration practices can more effectively support the aims of the Zero Harm Strategic Framework. For more information on what has been
done to address our safety performance, see Ensuring safe production from page 102 in this integrated report.
OTHER AREAS OF ATTENTION
The remuneration team remains focused on the growth and complexities that come with integrating various diverse operations, each with
pertinent sub-cultures, while maintaining competitive performance relative to organisations that are in a less rapid phase of growth. This has
required agility from the Remuneration Committee in dealing with remuneration matters, and robust debate and consideration of various
factors relating to matters of pay.
Since transitioning into an operation that spans multiple jurisdictions, Sibanye-Stillwater has maintained a consistent remuneration policy with
incremental adjustments in response to evolution in external and internal circumstances.
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Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Given the challenging economic climate as well as the prevailing headwinds for mining businesses in southern Africa (especially with respect
to commodity prices and input cost pressures), at the annual remuneration review early in 2018, the Remuneration Committee agreed to the
proposal initially made by management that the executive directors and Group Executive Committee (Group Exco) forgo their salary increases in
their Guaranteed Remuneration Packages (GRP) for this cycle, and any benefits calculated thereon.
This arrangement was also extended to senior leadership with below-inflation increases granted to management. While this action has
obviously reduced the guaranteed remuneration paid to Group leadership fractionally relative to their previous market benchmark levels, it was
recognised and accepted as a measure that was necessary to set the leadership tone in preserving the sustainability of the operations.
Early in 2019, we again reviewed the GRP levels for executive directors and prescribed officers and awarded increases on a person-by-
person basis with effect from 1 March 2019, taking account of the annual CPI levels, together with any additional consideration for personal
performance. This resulted in increases that ranged between 4.5% and 5.5% for the South African-domiciled executives. This is close to the
expected cost of living increase in South Africa for the year ahead and is similar to or less than increases to base pay awarded at lower employee
band levels in the organisation.
The parameters used to determine incentive payments to management were updated to align with the evolving strategic priorities of the
business. The weighting assigned to the performance elements used to determine short-term incentives continues to track the strategic
imperatives and priorities of the Group as they evolve over time.
In recognition of the Group CEO’s role in providing strategic and technical leadership to the US operations and the proportion of his time and
attention spent between the SA and US operations, we determined that a commensurate portion of his guaranteed remuneration and incentive
payments should be paid in the United States through a dual services contract.
We continue to track emerging remuneration trends both globally and in the territories where Sibanye-Stillwater operates, both for executive
remuneration and in order to ensure employee benefits, such as healthcare, are kept in line with current appropriate employment practices
applicable to the regions in which our employees are engaged.
SUMMARY OF ACTIVITIES UNDERTAKEN DURING 2018
Besides standard governance and approval items on the Remuneration Committee’s annual work plan, we addressed the following matters
during the year:
• Particular focus on addressing and accounting for the increased number of fatalities in comparison with previous years as a result of the two
safety incidents in 2018
• Adjustments to weightings used on performance scorecards for executives
• What criteria to apply when considering whether or not, and to what extent, any adjustments might be applied to performance scorecard
targets during the year
• Deliberations on increases to executives’ GRP in the context of remuneration competitiveness and fairness
• Review of benchmark practices with respect to the Minimum Shareholding Requirements (MSR) for senior leadership
• Substantial further and on-going benchmarking in relevant markets to assess the level and mix of remuneration
• Engagement with shareholders and their proxies as to concerns and expectations
• Determination of dual role remuneration for the CEO to reflect SA and US accountabilities
• An initial review of gender and race pay parity measures
• An initial review to establish an appropriate basis for tracking executive management remuneration relative to broader employee pay parity to
gain better insight and understanding in this regard
FOCUS AREAS FOR 2019
• Implementation of the MSR plan with effect from March 2019
• Determining an appropriate basis for the award of matching shares in respect of MSR holdings, which are to be granted with effect from
2020, together with the performance conditions to be applied
• Further review and revision of the performance conditions applicable to the Long-Term Incentive (LTI) share awards applicable from 2020
awards onwards in order to be appropriately aligned with current best market practices
• Following conclusion of the Lonmin acquisition, the integration and alignment of Lonmin’s employees and their remuneration practices with
our Group’s policies and practices
• Further review of the level and mix of remuneration to better ensure the fairness and reasonableness of remuneration for the size and
structure of the Group across the markets in which it operates
Sibanye-Stillwater Integrated Report 2018 177
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
NON-BINDING ADVISORY VOTES
Shareholders will once again be afforded the opportunity to vote on two separate non-binding advisory resolutions at the forthcoming AGM on
28 May 2019: one on remuneration policy (Part 2 of this report) and the other on the remuneration implementation report (Part 3 of this report).
In the event that either or both are voted against by 25% or more of entitled voting rights exercised by shareholders, Sibanye-Stillwater commits
to implement measures, including engagement with dissenting shareholders, in an attempt to address all legitimate and reasonable objections
and concerns and to disclose how these objections and concerns would be addressed in next year’s integrated report.
At the 2018 AGM in May last year, 3.2% and 16.5% of shares voted were against the remuneration policy and remuneration implementation
report respectively.
While both resolutions received votes above the required majority, we still engaged with concerned shareholders and institutional shareholder
advisory services who had expressed reservations relating to remuneration implementation in 2017. We acknowledge these comments and,
consistent with our desire to be responsive to our stakeholders, we have continued to evolve our disclosure in line with changing best practice.
The table below provides an overview of the main feedback given and concerns raised together with our responses.
Shareholder concerns
and feedback
Responses
Additional detail on the
reasons for the year-
on-year increases in
guaranteed remuneration
required
Special cash incentives
were paid to executive
directors
Concern expressed about
the extent of linkage
between remuneration,
business performance
and value creation
A concern expressed
that the performance
targets set ‘are not
robust and stretching’
The growth of Sibanye-Stillwater into a multi-national operator with a revised leadership configuration had
resulted in an updated assessment of the company’s position relative to comparator benchmarks, determined
in terms of both the span of operations and the organisational size and complexity. While the 2016 guaranteed
remuneration levels had been deemed appropriate based on a peer group of South African-based gold
companies, the 2017 benchmarks were reassessed relative to global precious metal miners with operating
footprints spanning numerous jurisdictions. Drawing on advice and guidance from PwC (our remuneration
consultants, then headed by Martin Hopkins) as independent third party experts, and recognising the very
substantial increase in scale, scope and complexity of senior roles, ‘larger than inflation’ increases were readily
warranted so as to place the relevant executives at appropriate levels according to their particular benchmarks.
In recognition of the value created through the rights offer completed in 2016 and the exemplary work done
to execute and coordinate the major transformative financing arrangements relating to the bridging and
permanent financing of the Stillwater transaction, management motivated the payment of a special award in
the form of an ex-gratia cash bonus to eight members of the management team (excluding the CEO and CFO)
amounting to R6.5 million in total. The Remuneration Committee supported this request but chose to extend
this award to include the two executive directors (CEO and CFO) as well. Some shareholders objected to their
inclusion in this arrangement, as they believed this should only be assessed and rewarded within the confines of
their regular variable pay incentives. We take their point in this regard on board and undertake not to enter into
similar ex-gratia awards for executive directors in future.
We believe that the Group’s remuneration philosophy, policy and practices are well founded and structured so
as to readily link remuneration outcomes to the organisational and personal performance in the short term and
that the long-term incentives are well aligned to the delivery of value over time. See Part 2 for further details.
In determining and setting appropriate performance targets in the organisational and personal performance
scorecards, Sibanye-Stillwater undertakes a thorough process in order to ensure that sufficiently stretching
targets are set and approved by the Board. For each key result area, there is a determination of what would be
considered acceptable as ‘on target’ together with a determination of what are considered the ‘threshold’ and
‘stretch’ levels of performance. The level of performance required to secure the ‘on target’ level of incentive
payment is pitched to be reasonably and safely achievable, taking into account the normal level of operational
risk exposure and also taking into account what has been acceptably achievable in the past.
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Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Shareholder concerns
and feedback
Responses
Concerns regarding
change of control and
termination payments
due to change of control.
We acknowledge shareholders’ concerns regarding the change-of-control provisions in the service contracts
of the two executive directors. This has been disclosed in Sibanye-Stillwater’s integrated reporting since the
outset and is a legacy arrangement that will be honoured in terms of the existing commitments but will not be
repeated going forward.
Vesting for below
median performance for
the total shareholder
return (TSR) performance
condition in respect of
LTI Share Awards
The shareholder who raised this concern noted that the performance condition as applied attracted qualified
support given the recognition that the arrangement is in line with practices commonly applied in South Africa
and the below median vesting is at a modest level. The level of vesting at median performance of the peer
group was noted as acceptable in the shareholder feedback. Recognising that it is particularly relevant in the
cyclical mining sector to maintain stability in performance conditions to fairly reward long-term performance
over several performance cycles, the Remuneration Committee intends to review the performance conditions to
be applied to awards from 2020 onwards during 2019 in the context of evolving trends and standards.
Concern raised about
lack of performance
conditions applicable
to Forfeitable (Bonus)
shares that are awarded
alongside the cash
portion of the annual
bonus
The annual bonus at the senior level is split between cash and shares, which we refer to as Forfeitable (Bonus)
Shares, in a 60:40 ratio. Forfeitable Shares are a short-term deferral of a portion of the annual incentive since
they vest in two parts, half after nine months and the balance after 18 months. They only vest if the employee
is still in employment with us at the date of vesting. As such, this should be seen as a short-term lock-in
arrangement as opposed to a longer-term performance incentive (for which we have our LTI share awards) and
therefore we do not believe that applying performance conditions to these shorter-term Forfeitable shares is
appropriate or necessary.
REMUNERATION CONSULTANTS
During the year, we consulted with remuneration consultants, PwC, to assist us with the benchmarking of non-executive director fees.
The Remuneration Committee has previously engaged with remuneration consultants on a case-by-case basis as and when the need arose.
However, the Remuneration Committee agreed that we needed to enter into a more on-going relationship with an expert remuneration advisor
as a dedicated advisor to the Remuneration Committee and have agreed to enter into such an arrangement with effect from 2019, details of
which will be provided once concluded.
Furthermore, management will continue to engage with the remuneration consulting team at PwC in support of the development and
implementation of our Group reward policies and practices and will call on other experts as required.
We are satisfied that these consultants are independent, objective and well qualified and experienced for our purposes.
FUNCTION OF THE REMUNERATION COMMITTEE
The Remuneration Committee assists the Board in discharging its responsibilities for setting and administering remuneration policies and
practices in line with the Group’s strategies, objectives and long-term interests. It has a particular focus on the remuneration of Executive
directors and the executive vice presidents (EVPs) of the Group, collectively our Prescribed Officers. Our Prescribed Officers are members of the
Group Exco, which constitutes what King IV refers to as ‘executive management’.
We are mandated through, and act on the basis of, the Remuneration Committee’s Terms of Reference. This document is available on our
website (https://www.sibanyestillwater.com/about-us/corporate-governance). We believe these Terms of Reference remain fully compliant with
the requirements and principles of King IV.
The Remuneration Committee is responsible for, inter alia:
• Considering and recommending remuneration policies for all employment levels in the company with a particular focus on the remuneration
of the Group Exco. The approved remuneration policies are reported in Sibanye-Stillwater’s Integrated Annual Reports in accordance with
applicable rules and regulations
• Advising the Board on Sibanye-Stillwater’s Remuneration Policy in respect of the Group Exco
• Recommending to the Board the remuneration payable and conditions of employment for executive directors and approving the remuneration
payable to the Prescribed Officers (comprising the Group Exco)
The Terms of Reference were reviewed during the year with no material changes except that the role of determining and recommending the
appropriate level and periodic increases in the fees of non-executive directors is now the responsibility of the Remuneration Committee whereas
it had previously been overseen by the Nominating and Governance Committee.
The Remuneration Committee is satisfied that Sibanye-Stillwater has, throughout 2018, complied with the Remuneration Policy and that no
material deviations have been noted.
Sibanye-Stillwater Integrated Report 2018 179
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
COMPOSITION AND OPERATION OF THE REMUNERATION COMMITTEE
• There were no changes to the composition of the committee membership during the year.
• The committee members are myself as Chair, Savannah Danson, Barry Davison, Sello Moloko, Nkosemntu Nika and Keith Rayner.
• All members are independent non-executive directors
• All meetings have been quorate and attendance by committee members is recorded in the governance section of the integrated report.
• In addition to committee members, the CEO, the EVP: Organisational Effectiveness (who has accountability for Group leadership development
and growth, among other functions), the VP: Strategy and the Company Secretary typically attend our meetings, none of whom do so as of
right and nor do they attend when their own remuneration is being discussed and all of whom provide material assistance to the Committee.
• Executive directors are not involved in any decisions regarding their own remuneration and are recused from such discussions and
deliberations.
• We agree an annual work plan that guides our agendas and areas of focus for our four meetings over the year.
• Between meetings, we will review and consider relevant matters by round robin when required, with subsequent confirmation of the round
robin decisions at the next committee meeting.
APPRECIATION
Lastly, I would like to thank my committee colleagues for their assistance in ensuring that we pay proper attention to the key aspects of
remuneration in the Group (both the development of policy and practice as well as its implementation) and that we deliver on our mandate
appropriately.
I also extend my thanks to the members of the management team for their hard work and dedication during the year, as well as to those
shareholders and proxy advisors who gave us constructive and candid feedback on our policies and practices.
Tim Cumming
Chairman: Remuneration Committee
29 March 2019
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION PART 2: REMUNERATION POLICY
REMUNERATION PHILOSOPHY GUIDES POLICY
Sibanye-Stillwater’s remuneration philosophy guides the Group’s Remuneration Policy and decision-making processes. It is founded upon the
simple recognition that various forms of capital are engaged in driving the performance of the business over time and that each of those capitals
seeks a fair return.
Shareholders and creditors have provided the financial capital that is then applied to acquiring and developing the resources/reserves (mining
assets), the physical assets (plant and equipment etc.) and the human capital (the employees) of the business. In addition, the countries and the
communities in which the mines operate should also be seen as providers of capital on which they seek a return – which is afforded them in
terms of mining royalties, incomes taxes, employee taxes, property rates and other levies and expenses paid by the Group.
However, although some mining assets are clearly superior to others (in terms of potential for realisation of value), the success of a mining business
very much depends on the skills and application of its employees to deliver financial value from the assets with which they have to work.
Accordingly, in order to ensure that the providers of financial capital receive attractive returns over time they need to be satisfied that they
have the best mix of human capital available to deliver this for them. Furthermore, in order to drive and motivate exceptional performance, the
providers of financial capital also believe in the principle of sharing the gains achieved on a basis that is fair and competitive.
REMUNERATION POLICY
Accordingly, Sibanye-Stillwater’s remuneration policy seeks to attract and retain key talent and to reward employees fairly and appropriately
across the organisation such that the Group is viewed by all pertinent stakeholders, both within and outside the employ of the Group, as
an organisation that provides a positive performance environment, a workplace with upstanding ethics and morals, and an opportunity for
employees to develop their careers and earn a good living focused on delivery of our common purpose that “our mining improves lives”
The remuneration framework and practices that are determined by this remuneration policy are designed to have the following attributes:
• Flexibility. To support a diverse and multi-regional organisation to accommodate differences and changes in job requirements, labour market
practices and economies.
• Transparency. To provide executives and staff with clarity regarding their roles and performance expectations and a clear understanding as to
how the remuneration practices and structures applicable to them work.
• External competitiveness. To enable and reflect appropriate pay levels and structures for comparable jobs within the relevant labour market.
• Internal comparability. To provide remuneration guidelines that ensure similar jobs are paid equitably across the Group within relevant
markets.
• Recognition. To reward performance through appropriate base pay progression, short-term incentives (bonuses) and, where applicable, long-
term incentives. Extraordinary performance and contributions are further rewarded at a level that signifies the value of the employee to the
organisation and encourages retention and further commitment.
From a market-competitiveness perspective, our remuneration policies and practices are also designed to be appropriately competitive so as to
enable the attraction, retention and motivation of talented and skilled people, especially at executive and senior management levels, in order to
ensure the company is best able to deliver on its core purpose, vision and strategies.
From a retention perspective, key consideration and focus are placed upon enabling individual growth, offering compelling career development
and enhancement opportunities as well as allowing for a reasonable work-life balance.
Remuneration structures are benchmarked annually against relevant peer groups on a territory-specific basis to ensure reasonable external parity
and competitive remuneration potential. In addition, employees’ remuneration levels and remuneration potential are also compared internally to
ensure appropriate parity or differentiation as needs be.
ENSURING THE LINK BETWEEN STRATEGY AND REMUNERATION
The Group strategy and related strategic objectives are described elsewhere in this report. However, it is important to comment on how
remuneration is linked to the delivery on these strategic objectives.
The Group’s primary driver of desired performance is exerted through the use of cascading performance scorecards that apply a top-down
approach that is premised on the simple dictum (arguably) attributed to Peter Drucker that goes: “What gets measured, gets managed. What
gets managed, gets done.”
Simply put, the strategies of a company are nothing more than the decisions that have been made as to how one allocates, uses and optimises
the value generated from the resources available to the company in pursuit of its vision and mission. All these resources are finite and limited –
and are often scarce and typically much competed for. They comprise little more than the following: money, people, physical assets, geological
and natural assets (in the case of mining companies), intellectual property (sometimes) and time.
Sibanye-Stillwater Integrated Report 2018 181
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Accordingly, after the Board and management have agreed and set out the short- and long-term strategies for the company they are devolved
into business plans (i.e.: determining who will do what, with what, to what extent and by when). These are then broken down and captured
in the various performance scorecards applicable at all levels of the organisation, starting from the top and cascading down, and taking into
account what can be safely and efficiently extracted from the mining assets available.
Not only do the scorecards enable us to allocate pertinent elements of the strategies and business plans to particular executives and their teams
tasked to deliver on them but it also enables management to indicate the degree of importance attached to each of these component elements
by applying different weights to each area accordingly.
Furthermore, three scorecards are used to determine the success of the organisation (collectively) or the Executives (individually) and ultimately
the extent of remuneration paid to each Executive. The first two scorecards relate to measuring short-term performance and the third one
focuses on delivery of superior value to shareholders over time and is a key determinant of long-term incentive outcomes for executives.
1. Group Performance Scorecard: Covers the four key operational result areas for the Group as a whole that we refer to as Safety, Cost,
Production and Sustainability. These are described in more detail below.
2. Personal Performance Scorecard: Contains a mix of key result areas that are deemed appropriate to judge the extent to which a particular
executive has performed as a manager and leader within their specific domain and range of responsibilities.
3. Shareholder Value Delivery Scorecard: Assesses the delivery of sustainable value to shareholders over a rolling three-year period through
the assessment of the performance conditions applied to determine the vesting percentage of the Conditional Share awards.
The overall remuneration for each Executive, for the purposes of short-term and long-term incentive awards, is then determined by the
performance achieved on each of these scorecards with the applicable influence on each component of the remuneration mix.
This gives the resulting incentive-based remuneration which is determined by the short-term and long-term awards which are clearly and directly
linked to the Group’s strategies.
DISTINCTION BETWEEN SHORT-TERM INCENTIVES (STI) AND LTI
It is important to set out an explanation as to the rationale behind the design and structure of the STI and LTI at Sibanye-Stillwater. When
considering STIs in any particular period (where financial performance or the share price may increase or decrease), it is important to view the
whole package, that is the STI plus LTI outcomes and not just the STI on its own.
Management does not have any control over several key exogenous factors that can have a very substantial impact on short-term financial
performance or the company’s share price. The most significant of these factors include:
• the commodity prices of the metals we mine and refine, which directly determine revenue received for the metals produced and sold,
• the rand/dollar exchange rate, which also directly affects Rand revenues (and some costs).
Not only does management have no control over these variables but they are also notoriously difficult to predict and therefore it is not reasonable in
the short term to measure or reward management on factors largely beyond their control and for which they have no accountability.
However, what management can be held accountable for is the safe and efficient development and extraction of metal from our mining
operations and the safe production of as much of the metal as possible for the least cost.
That is why the short-term incentive assessment uses the four factors – safety, production, cost and sustainability – as key performance
indicators (KPIs) as opposed to, for example, revenue or profit.
Nonetheless, shareholders would understandably wish to see senior employees having a degree of alignment to their own interests, which
are typically concerned with share price performance and return on capital/equity. Accordingly, the long-term incentive portion of executive
remuneration is paid to them in shares with the quantum of this amount being a function of recent individual performance combined with a
determination of the extent to which total shareholder return was achieved relative to peers and the extent to which the Group’s return on
capital exceeds the cost of capital (or not) over the prior three years. In this way, executives feel the same pain as shareholders when these
returns are poor and/or will experience the benefits of good financial performance when shareholders do.
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION FAIR AND RESPONSIBLE REMUNERATION
We remain committed to remuneration fairness across all levels of the Group.
Clearly this is a complex matter since fairness can be considered from the perspectives of different stakeholders – employees, shareholders, the
broader community in which we operate, among others – and there can be conflicting opinions between these different stakeholders in terms
of what each might deem to be ‘fair’. We have to try and navigate those differences bearing in mind our responsibility as directors towards the
interests of the Group.
The two key criteria in considering what is fair are, in the first instance, external parity and internal parity.
By this we mean that all employees’ remuneration arrangements should be determined and reviewed for fairness with reference to how their
actual and potential rewards from remuneration stack up relative to these two criteria. i.e.:
• How does this compare relative to other people who undertake a similar role, have similar levels of skill, experience and responsibility in other
similar or comparable organisations within the same country or region?
• How does this compare relative to other people who are also working at Sibanye-Stillwater, in the same or similar roles in terms of their
respective levels of work, skills, experience and responsibilities?
No perceptible difference in actual and potential remuneration of one person when compared to that of another who is deemed to be
reasonably comparable on either an External and Internal Parity basis – and, importantly, who has been performing with the same degree of
success as the comparator - should ever be accorded to their gender, their race or any other personal factor not relevant to the job.
Accordingly, as a matter of policy, we seek to ensure that we are fair and equitable in this regard with no discrimination that could be attributed
to differences in race, gender or any other personal factor that has no bearing on the person’s ability to perform acceptably on the job.
We also recognise the need to address the challenges of unreasonable income inequality (that is the difference between remuneration earned by
employees at the top of the organisation as compared to those lower down in the organisation) whilst still remaining competitive and retaining
the ability to attract the talent necessary to provide the required levels of technical and professional management and leadership. To that end we
are mindful of paying attention to respective increases in remuneration between these levels over time.
Part 3 of this Remuneration report sets out some analysis of how we have addressed this to good effect over the past five years.
By way of summary, the key principles underpinning Sibanye-Stillwater’s remuneration approach are encapsulated in the diagram below:
KEY PRINCIPLES OF REMUNERATION
Support execution of
the business strategy by
providing rewards that
attract, motivate and
retain the talent and skills
necessary for Sibanye-
Stillwater to deliver on its
strategic vision, particularly
at executive and senior
management levels
Promote sustained
achievement of strategic
objectives and positive
outcomes in the short,
medium and long term
(King IV, principle 14)
Progressively reduce
excessive historical
income disparities across
employment levels
Facilitate the deployment of
people, as necessary, across
the Group’s operations
Sibanye-Stillwater Integrated Report 2018 183
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
REMUNERATION ELEMENTS
Sibanye-Stillwater’s remuneration structure includes the following elements:
Description
Pay element
Alignment with remuneration philosophy
Guaranteed
base pay
Base salary and allowances including provision
for medical and retirement
Guaranteed
remuneration
package (GRP)
With reference to the relevant market
median guaranteed pay benchmark taken
from remuneration surveys. This provides the
foundational element of the remuneration
mix
Short-term
incentive (STI)
Annual incentive based on a combination of
operational delivery and execution of approved
business strategies
Cash bonus (60%)
Performance-based reward providing
immediate recognition for superior
performance over the prior year
Forfeitable (Bonus)
shares (40%)
Long-term
incentive (LTI)
Share award linked to recent personal and
organisational performance, with the value
on vesting being determined by the extent of
delivery of superior shareholder value
Conditional
(Performance)
shares
A deferred performance-based reward (for
retention purposes) and incorporating a
limited alignment with delivery of value to
shareholders through medium term exposure
to share price movement
Motivation and retention with a strong
performance component rewarding sustained
delivery by the company of superior
shareholder value over the medium term
TARGET REMUNERATION MIX
The table below sets out the remuneration mix for the various levels of management assuming on-target performance.
In line with the scope and influence of each level of management, there is a progressive increase in the weighting towards long-term incentives
with an emphasis on delivery of sustained value to shareholders at the more senior levels.
The value quoted for Forfeitable Share awards in the target remuneration mix is the face value at award date without taking into account the
impact of potential share price appreciation over the vesting periods.
The value of the Conditional Shares awarded for on-target performance in each remuneration cycle is quoted at the estimated “fair value” of
the on-target award. This is an actuarial determination of the typical value of the award granted in each remuneration cycle that the participant
should expect to receive at vesting. The calculation takes into account the projected change in the share price over the vesting period and the
market-related performance conditions that are expected to apply on vesting.
Remuneration structure mix (% of total potential remuneration for on target performance)
Level
Chief Executive Officer
Chief Financial Officer
Executive Vice President (or prescribed officer)
Senior Vice President
Vice President – SA-based
Vice President – US-based
E lower band*
D upper band*
D lower band*
Short-term incentive
Long-term incentive
Guaranteed pay
Cash bonus
Forfeitable
shares
Conditional shares
34.9
36.8
39.4
41.1
46.6
54.7
62.5
66.7
71.4
22.7
22.1
21.7
20.5
18.6
21.9
37.5
33.3
28.6
15.1
14.7
14.5
13.7
12.4
14.6
0.0
0.0
0.0
27.2
26.5
24.4
24.7
22.4
8.8
0.0
0.0
0.0
Total
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
* Patterson bands applicable to middle and junior management
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Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Remuneration structure mix (% of total potential remuneration)
Chief Executive Officer
Chief Financial Officer
Executive Vice President
Senior Vice President
Vice President – SA-based
Vice President – US-based
E lower band
D upper band
D lower band
0%
20%
40%
60%
80%
100%
Guaranteed pay
Short-term incentive cash component
Short-term incentive deferred share-based component
Long-term incentive (Conditional shares)
COMPOSITION OF TOTAL REMUNERATION PACKAGE – EXECUTIVE DIRECTORS AND SENIOR EXECUTIVES
The range of potential incentive pay per rand of GRP is illustrated below for the Group Exco who constitute executive management as per King
IV and Prescribed Officers in terms of the South African Companies Act, 2008. The “maximum on award” represents the implications of the
highest possible performance rating from the previous performance cycle at a typical fair value of the Conditional Shares awarded over the
vesting period. Maximum potential on vesting represents maximum awards with the highest possible performance condition applied to the
Conditional Shares at vesting although not incorporating the possible effects of share price appreciation over the vesting period.
Range of performance-related pay by executive
Chief Executive Officer
Chief Financial Officer
Minimum
On target
Maximum
on award
Maximum
potential on vesting
0
1
2
3
4
5
6
7
8
Minimum
On target
Maximum
on award
Maximum
potential on vesting
0
1
2
3
4
5
6
7
8
Executive Vice President
Minimum
On target
Maximum
on award
Maximum
potential on vesting
0
1
2
3
4
5
6
7
8
Guaranteed pay
Short-term incentive cash component
Short-term incentive deferred share-based component
Long-term incentive (Conditional shares)
GUARANTEED REMUNERATION
The benchmark used, in the first instance, for determining GRP by job level and discipline, is a market median level obtained through
independent remuneration survey databases for peer mining companies with differentiation by territory. At the time of assessment, an
Executive’s actual remuneration may well be above or below the median level and may remain above or below the median for good reasons
such as length of time in the role, level of performance while in this role etc.
For consistency in application, the Company made use of relevant comparator companies as a peer group and the related survey data supplied
by Mercer and Hay for the US PGM operations and PwC for the SA operations, backed by independent advice and support from external
consultants. In addition, further verification was obtained by collecting comparable data from competitor company proxy statements to verify
“pay for performance” relativity for the Executives. This practice of benchmarking by using peer group data (provided by Mercer and PwC)
to ensure pay parity and internal alignment with our remuneration principles is used extensively for levels below the Executive. GRP levels are
reviewed annually against market benchmarks to remain competitive. The median benchmark is the first point of reference when making
comparisons with other factors such as length of time in the role, extent to which the executive is more than, or less than, fulfilling all aspects
commensurate with the role also considered when making pay level determinations.
Sibanye-Stillwater Integrated Report 2018 185
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
PERFORMANCE-BASED INCENTIVE PLANS
While the short-term incentive scheme rewards those elements of performance that are mostly within the control and line-of-sight of the
employees, the long-term incentive is conditional on the achievement of longer-term financial hurdles that are aligned with shareholder
value creation.
SHORT-TERM INCENTIVE PLAN
Guaranteed
remuneration
On-target bonus
%
Modifier
(0-200%)
(operational performance
+ personal performance)
Short-term incentives focus on and incentivise management to achieve safe, sustainable, cost effective delivery from operations and to achieve
proper progress in executing the Board-approved Group strategic goals. These incentives are awarded following the assessment of the Group’s
annual performance (or at lower levels, the operating unit or area of accountability) against agreed targets (Operational performance) as well as
the individual performance goals achieved during the year under review (Personal performance).
For 2018, weightings between the Operational performance and Personal performance elements differed according to the location of the
employee in the business as follows:
Deployment
Individuals in South Africa with direct line responsibility for management of production operations
Regional executives and services functions and all United States management
Group executives and corporate office
Operational
performance
Personal
performance
90%
70%
60%
10%
*30%
40%
* There is a split between personal and service area delivery performance for SA Services Management and certain Corporate Services employees. For
employees in services functions, half of the Personal performance is accounted for by performance in the service area of which they are part
The weightings to be applied to Operational and Personal performance in 2019 have been reviewed in order to:
• intensify operational focus
• enhance consistency across the Group
• provide for the introduction of a ‘values alignment’ component as a new element in the Personal performance evaluation of all managers (this
is to have a significant weighting of approximately 10% of overall performance)
It has been decided to change the 90:10 weighting to 80:20 for those managers with direct responsibility for management of production
operations for the 2019 period. All other managers and executive management will have the respective elements weighted on a 70:30 basis.
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION OPERATIONAL PERFORMANCE
As discussed earlier, operational performance is determined for the Group through a scorecard using safety, production, cost and sustainability
as the key performance indicators.
Targets in the forthcoming year’s approved business plans are used to set the Organisational performance targets applicable for the STI
calculations. In determining the targets, consideration was given to performance that is considered realistically achievable, given the levels of
operational risk that would normally be experienced while allowing for an element of stretch and taking into consideration the organisation’s
performance over the past few years.
Based on these business plans and at the start of each performance cycle, the Remuneration Committee approves the key performance
indicators, target performance levels and ranges that will be used to determine the quality of the Group’s delivery from operations.
Overall Group operational delivery is a weighted aggregate of the performance of the major operating areas of the business. The threshold
and stretch targets are set based on these targets, with threshold performance resulting in a 0% score for that particular KPI, and a stretch
performance outcome resulting in a 200% score for that KPI.
Criteria to determine and adjust performance targets
The Remuneration Committee has the discretion to adjust targets during the course of the year where significant anomalous and unforeseeable
events occur which are outside the control of management, or where there are conscious value-adding (or loss-saving) operational departures
from the Board-approved plan and where these events cause material deviations from the approved targets. An example of such an event might
be a massive seismic event that renders a section of the mine inaccessible or no longer worth mining.
2019 Operational performance conditions
The table below details the 2019 KPIs for the key focus areas for each major operating area within Sibanye-Stillwater.
KPIs for 2019 per major operating area
Weight Metric
KPI
SA gold operations (one third contribution to Group)
FIFR (per million hours worked)
SIFR (per million hours worked)
Safety
25%
Production
Cost
25% Gold produced (kg)
25% Operating cost per underground ton milled (R/ton)
Sustainability
25%
Primary on-reef development (m)
Primary off-reef development (including Burnstone and Capex) (m)
SA PGM operations (one third contribution to Group)
Safety
Production
25%
Fatal injuries
SIFR (per million hours worked)
25% Ounces produced (‘000 4E oz)
Cost
25%
Sustainability
25%
Operating cost including ORD before credits and direct costs of by product per 4E ounce produced
(R/4E oz)
Primary on-reef development (m)
Primary off-reef development (m)
US PGM operations (one third contribution to Group)
Safety
25%
Production
25%
Cost
25%
Sustainability
25%
Total reportable injuries per million hours
Progress on ongoing refinement of US PGM operations safety strategy
Progress on review of GET Safe Safety and Health Management System
Returnable 2E PGM produced (‘000 oz)
Tons milled (‘000 ton)
Recycling throughput (tons smelted per day)
All-in sustaining cost per 2E oz (US$ / oz)
Recycling EBITDA (US$ million)
Development advance (Stillwater including Blitz excluding project) (equivalent 000 ft)
Development advance (East Boulder excluding project) (equivalent 000 ft)
Diamond drilling advance (Stillwater including Blitz including project) (000 ft)
Diamond drilling advance (East Boulder including project) (000 ft)
Concentrate handling project status
Progress made in the review of environmental management systems
Number of externally reportable incidents or notifications of violations based on Environmental
Protection Agency and Montana Department of Environmental Quality guidelines
Weighting
50%
50%
100%
100%
50%
50%
50%
50%
100%
100%
50%
50%
50%
25%
25%
50%
25%
25%
75%
25%
12.5%
12.5%
12.5%
12.5%
20%
15%
15%
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Personal performance
The Remuneration Committee and the Audit Committee also approve respectively the individual scorecards of the CEO and the CFO that
reflect strategic business imperatives for the company. In turn, the CEO develops specific individual objectives, aligned with the organisation’s
strategic objectives, with those who report directly to him at the beginning of each year. On conclusion of each cycle, the Remuneration
Committee reviews the performance determinations of the Executive Directors and the rest of the Group Exco as the basis of approving STI
payments and LTI awards.
The Group uses a rating scale of 1 - 5 where a rating of 3 will equate to a 100% score for the Personal performance component, with the
highest rating of 5 resulting in a 200% score for the personal performance component. If the personal performance evaluation of any Executive
falls below 2.5 then no STI (cash or Forfeitable shares) will be awarded.
Maximum STI achievable
If stretch targets are achieved on both Operational and Personal performance scorecards, the maximum incentive is capped at twice the on-
target bonus level.
Deferral of a portion of STI into Forfeitable (Bonus) shares
All employees who are at VP level or above have 40% of their overall STI settled in Forfeitable shares (sometimes referred to as ‘Bonus shares’).
These shares vest in two equal tranches at nine months and eighteen months after the award date. Participants have full shareholder rights
on those shares from the date of award (save for the right to dispose) including the right to receive dividends. The Forfeitable shares will be
forfeited in the event of resignation or termination for cause, with a pro rata vesting applicable in the case of no-fault separations.
Long-Term Incentives
Annual awards of Conditional (Performance) shares under the current Sibanye-Stillwater Share Plan
Annual awards of Conditional shares (sometimes referred to as Performance shares) are made to VPs and above, with the number of Conditional
shares awarded being a function of the annual GRP (guaranteed remuneration) multiplied by a factor related to the Executive or management
job grade and further multiplied by a factor related to their assessed performance for the relevant period preceding the award. The performance
factor applied in this latter case is determined by reference to the table below.
Individual rating
Value as a % of value for on target performance
1.0 - 2.4
2.5 - 2.7
2.8 - 3.0
3.1 - 3.3
3.4 - 3.7
3.8 - 4.0
4.1 - 5.0
0%
50%
100%
125%
150%
175%
200%
Conditional shares have no dividend rights, or dividend equivalent rights associated with them prior to vesting.
The awards of Conditional shares will vest on the third anniversary of the award date dependent on the extent to which the performance
conditions have been met.
The award may be forfeited in the event of resignation of an Executive or their termination for cause, with a pro rata vesting subject to
application of performance conditions applicable in the case of no-fault terminations.
Performance conditions for vesting
The proportion of shares awarded that vest after the three year period depends on the extent to which Sibanye-Stillwater has performed relative
to two performance criteria – Total Shareholder Return (TSR) and Return on Capital Employed (ROCE) over the applicable three years. The
Remuneration Committee also has discretion to reduce the quantum of shares that would otherwise have vested by up to 20% in the event
of any serious poor performance relating to the Group‘s ESG track record. These performance conditions were introduced with effect from the
award of Conditional shares made in March 2016 and were based on what was understood to be widely acceptable measures used to gauge
the extent to which shareholder interests are being met. Accordingly, the actual number of shares that will vest at the end of each award cycle
will range from 0% to 100% of the shares initially awarded.
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Total shareholder return – applicable to 70% of Conditional shares
TSR, a composite measure of share price appreciation and dividends paid to shareholders, is widely recognised as one of the most appropriate
indicators of shareholder value delivery. It is used extensively internationally and increasingly in South Africa, sometimes as a single metric and
often as one of two or three weighted performance metrics. In a few cases an absolute target is set, but most often it is targeted in relation to a
peer or comparator group of “like” companies.
The TSR for Sibanye-Stillwater’s purposes is measured against an appropriate peer group of eight mining and resource companies that might
provide alternative investment options to Sibanye-Stillwater’s shareholders. When the peer group for the 2016 awards was determined, the
companies selected had similar market capitalisation and occupied similar strategic positioning to Sibanye-Stillwater as value-driven, multi-
commodity resources companies listed on the JSE with a primary focus on precious metals. These eight peer comparator companies are set
out below:
Peer companies for TSR comparison
African Rainbow Minerals Limited
Anglo American Platinum Limited
AngloGold Ashanti Limited
Exxaro Resources Limited
Gold Fields Limited
Harmony Gold Mining Company Limited
Impala Platinum Holdings Limited
Northam Platinum Limited
The TSR performance condition is determined based on the cumulative curve of the peer companies TSRs over the vesting period and where
each peer company is assigned a weighting in accordance with its market capitalisation. The percentile at which Sibanye-Stillwater’s TSR falls on
this curve is then determined at the end of the period. The applicable TSR score used in determining the percentage of awarded shares that will
vest in terms of this criterion is established using the table below, with linear interpolation between the levels quoted.
Vesting percentage relationship to relative TSR performance
Percentile on peer group TSR curve
% vesting
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
0
0
5
20
35
55
75
90
100
100
Sibanye-Stillwater Integrated Report 2018 189
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Return on capital employed – applicable to 30% of the Conditional shares awarded
Return on capital employed (ROCE) is a metric that can be used to assess how effectively a company generates profits from its employed capital.
There has been an increased focus on measuring the returns earned by businesses on the capital deployed over and above the applicable
prevailing risk-free rate or other ‘required’ rates of return. For Sibanye-Stillwater, the ROCE is evaluated against the cost of capital, which
includes an equity risk premium over the risk free rate. A minimum threshold on the performance scale for ROCE is set as equalling the cost
of equity, Ke, which would lead to 0% for the ROCE performance condition. Delivering a return that exceeds Ke by 6% or more would be
regarded as a superior return representing the maximum 100% on the performance scale and full vesting in respect of the ROCE element.
The performance curve governing vesting is linear between these limits as follows:
Vesting percentage relative to ROCE outcomes
ROCE element of performance condition (30%) Annual ROCE
≤Ke
Ke + 1%
Ke + 2%
Ke + 3%
Ke + 4%
Ke + 5%
Ke + 6%
% vesting
0
16.7
33.3
50.0
66.7
83.3
100
ESG over-ride condition
The Board, at its sole discretion may determine that, if there is evidence of material and significant environmental, social and governance (ESG)
malpractice during the vesting period applicable to Conditional shares, up to 20% of the Conditional shares that would otherwise vest may
be forfeited. In exercising its discretion, the Board may consider level 4 and higher environmental incidents, level 4 and higher social incidents,
negligence with respect to occupational health and safety management, material breaches of good corporate governance, and other relevant
issues impacting Sibanye-Stillwater’s ESG performance and track record. The forfeiture may be applied to specific areas of the business or to the
Group as a whole depending on the malpractices identified.
2017 Share Plan limit
Following shareholder approval at last year’s AGM, the share capital approved for issue under the 2017 Share Plan is 4% of the company’s
issued share capital at the time, being a total of 86,748,850 shares.
MINIMUM SHAREHOLDING REQUIREMENT PLAN
On a supplemental basis to the Remuneration Policy and in order to encourage executive leadership of the Group to take on personal exposure
to the Sibanye-Stillwater share price thereby increasing the extent of alignment with shareholder interests, the Remuneration Committee has
approved a MSR plan for implementation with effect from March 2019.
In terms of this plan, executives will be expected to build personal holdings in Sibanye-Stillwater shares in excess of threshold levels over
the five years from 2019 to 2023. Matching awards will be granted at the end of each year in the cycle based on the holdings achieved
representing satisfactory progress towards the thresholds. The first matching awards will only be made in March 2020 depending on
progress made during 2019.
Matching awards will be capped at a maximum of double the minimum shareholding requirement, will be subject to performance conditions
and a vesting period of three years, and will be forfeited should the minimum shareholding requirement not be met. A claw-back provision will
also be applied in respect of matching awards that have already vested by the end of the minimum shareholding build-up period should the
minimum holding not be met. The holding may be satisfied through a combination of pledging of unvested Forfeitable shares, commitment
of Forfeitable or Conditional shares on vesting and commitment of personal holdings, all converted to a pre-taxed equivalent value. These
parameters, on which we have received independent third party review from PwC, are considered consistent with parallel plans that have been
introduced by comparable South African mining companies.
Minimum shareholding requirement as a percentage of annual GRP at the start of the build up period
200%
150%
100%
Level
CEO
CFO and other executive directors
Other prescribed officers
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INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION The matching shares ratio and performance conditions applicable to the matching share awards are still under consideration and will be finalised
during the course of 2019 in conjunction with the review of performance conditions applicable to the long-term incentive share awards. That
determination will be guided by comparable custom and practice in this regard so as to be aligned with appropriate industry standards.
NON-EXECUTIVE DIRECTOR FEES
In terms of Sibanye-Stillwater’s Memorandum of Incorporation, fees for the services of non-executive directors are determined by the Company’s
shareholders at annual general meetings under the oversight of the Remuneration Committee as from the current cycle.
The appropriate level of fees and increases thereon are determined in a similar manner to assessing executive remuneration. Accordingly, we
review the relevant fees for board and committee membership with comparable governance responsibilities for companies with characteristics in
terms of operational size, complexity, regional spread and listing locations similar to Sibanye-Stillwater.
No provision is made for travel allowances, however, directors may claim for a refund of reasonable expenses if they incur these directly as
opposed to having the company make the travel arrangements on their behalf. These figures are disclosed in the relevant table on fees in Part 3
of this report.
EXECUTIVE DIRECTORS’ CONTRACTS OF EMPLOYMENT
The employment of an Executive Director will continue until terminated upon (i) 24 or 12 months’ notice by either party for the CEO and CFO,
respectively, or (ii) retirement of the relevant executive director (currently provided for at age 65 in the contract). Sibanye-Stillwater can also
terminate an executive director’s employment summarily for any reason recognised by law as justifying summary termination.
Except for the two current executive directors, none of the Prescribed Officers have employment contracts that provide for any compensation for
severance because of change of control.
The service agreements of the two executive directors contain “change of control” conditions, which are set out for information below. These
contracts and conditions will be honoured until they terminate. However, any future appointments of Executive Directors will be made without
provision for any compensation for severance because of ‘change of control’.
The employment contracts for the current two executive directors provide that, in the event of the relevant executive director’s employment
being terminated solely as a result of a ‘change of control’ as defined below, within 12 months of the ‘change of control’, the executive director
is entitled to:
• in respect of the CEO, payment of an amount equal to two and a half times GRP and in respect of the CFO payment of an amount equal to
twice the GRP
• payment of an amount equal to the average of the incentive bonuses paid to the executive director during the previous two completed
financial years
• any other payments and/or benefits due under the contracts
• payment of any annual incentive bonus he has earned during the financial year notwithstanding that the financial year is incomplete
• an entitlement to awards, in terms of the Sibanye-Stillwater Incentive Scheme, shall accelerate on the date of termination of employment and
settle with the full number of shares previously awarded.
The employment contracts further provide that payments will also cover any compensation or damages the executive director may have under
any applicable employment legislation
‘Change of control’ in terms of the above is defined as the acquisition by a third party or concerned parties of 30% or more of Sibanye-
Stillwater ordinary shares. In the event of the consummation of an acquisition, merger, consolidation, scheme of arrangement or other
reorganisation, whether or not there is a change of control, if the Executive Director’s services are terminated, the ‘change of control’ provisions
summarised above also apply.
Going forward, we will not include any contractual provisions in any employment contracts or variable pay contracts allowing for accelerated
vesting without the testing of performance conditions.
Sibanye-Stillwater Integrated Report 2018 191
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
NON-BINDING VOTE ON REMUNERATION POLICY
The Remuneration Policy, as set out here in Part 2 of this report, will be tabled for a separate non-binding advisory vote at the AGM.
PART 3: IMPLEMENTATION OF THE REMUNERATION POLICY – 2018
EXECUTIVE DIRECTORS’ AND PRESCRIBED OFFICERS’ SINGLE FIGURE OF REMUNERATION
The remuneration outcomes for executive directors and prescribed officers (who constitute executive management as per King IV) for 2018 are
set below. We have included comparative tables for 2017.
As introduced last year, these tables have been compiled in a manner that improves clarity and transparency and aligns with the expected
principles and practices of King IV.
Two perspectives are provided, the first being a Single Total Figure of Remuneration that reflects earnings attributable to the performance
delivered during the relevant cycle and the second, Total Cash Remuneration, reflecting earnings received by each executive director and
prescribed officer during the cycle. This should be considered in conjunction with the table of unvested awards, which provides a view of the
‘inflight’ LTI share awards for each executive during the cycle.
In this report, as for last year, both the short-term cash incentive and Forfeitable share awards, which are in proportion to the cash incentive
with deferred vesting, are reported on an accrued basis in the Single Total Figure of Remuneration. Conditional shares, as before, continue to
be reported on at vesting. To determine cash earnings in the cycle, amounts of shares that accrued in 2018 but were not settled are subtracted
while shares accrued in previous years and which were settled in 2018 are added back in. Finally, adjustments are added on to take account of
market movements on shares that were settled in 2018.
Remuneration paid to Sibanye-Stillwater executive directors and prescribed officers for the year ended 31 December 2018
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Neal Froneman ¹
Rand
equivalent
2,783
–
1,890
1,260
8,939
993
6, 729
4,486
Charl Keyter
Prescribed officers
Hartley Dikgale
Dawie Mostert
Themba Nkosi
Wayne Robinson
Richard Stewart
Robert van Niekerk
Shadwick Bessit ²
Chris Bateman ³
Total
11,722
6,033
3,560
3,674
3,648
4,330
3,774
4,868
336
993
862
260
501
269
351
419
541
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8,619
5,746
4 237
2,824
2,022
2,352
2,009
2,440
1,348
1,568
1,339
1,626
2,500
1,667
3,221
2,147
176
117
Rand
equivalent
7,944
291
4,160
2,773
4 1,717
2018 (R000)
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–
8,431
3,697
1,571
2,017
–
2,178
4,626
2,731
–
–
–
249
44
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29,827
(11,215)
19,691
(1,559)
36,744
5,933
(3,150)
–
–
2,783
35,760
(14,365)
19,691
(1,559)
39,527
17,697
(7,061)
10,009
(773)
19,872
8,761
(3,370)
3,470
(429)
8,432
10,112
(3,920)
3,866
(458)
9,600
7,265
(3,348)
3,572
10,925
(4,066)
3,559
(431)
(458)
7,058
9,960
12,986
(4,167)
6,319
(490)
14,648
13,508
(5,368)
6,532
(663)
14,009
688
(293)
–
–
395
16,885
(8,650)
3,498
(229)
11,504
–
–
–
–
–
–
–
–
–
–
–
Total
49,889
4,546 31,736
21,155
1,717
25,251
293
– 134,587
(54,608)
60,516
(5,490) 135,005
¹ Entered into a dual service contract with effect 1 May 2018, remuneration paid in US$ was converted at an average exchange rate of R13.87/US$
applicable for the eight month period ending 31 December 2018
² Appointed a prescribed officer on 1 December 2018
³ Remuneration paid in US$ was converted at the average exchange rate of R13.24/US$ applicable for the twelve month period ending
31 December 2018
4 The other cash payment represents the contracted payout of benefits arising from the treatment of unvested share based remuneration in respect of
the Stillwater Mining Company share plan, which comprised shares granted in the form of RSUs (retention based) and PSUs (performance based). In
accordance with the change of control provisions of the Stillwater Mining Company share plan, on the acquisition of Stillwater by Sibanye-Stillwater all
shares (RSUs and PSUs) were converted to a cash settlement with phased payments at US$18/share. No further performance criteria were to be applied
with settlement subject to the prescribed officer remaining in the employment of Sibanye-Stillwater at 31 December of the year in question to qualify for
the payment. The final tranche is payable at 31 December 2019.
192
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
The corresponding information for the period ended 31 December 2017 is presented in the table below:
Remuneration paid to Sibanye-Stillwater executive directors and prescribed officers for the year ended 31 December 2017
2017 (R000)
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Executive directors
Neal Froneman
10,265
1,103
9,418
6,278
5,741 22,775
Charl Keyter
5,501
758
4,614
3,076
3,160
7,834
Prescribed officers
Hartley Dikgale
Dawie Mostert
Themba Nkosi
Wayne Robinson
Richard Stewart
Robert van Niekerk
John Wallington 1
Chris Bateman 2
3,749
3,634
3,509
4,287
3,731
4,517
1,772
4,023
258
496
276
348
414
489
313
148
2,291
1,528
2,578
1,718
2,372
1,582
2,328
1,552
–
–
–
–
4,455
4,495
–
1,295
2,829
1,886
2,096
1,045
4,492
2,995
1,309
872
2,628
1,743
–
–
–
6,540
–
–
Total
44,988
4,603 34,859 23,230 10,997 48,439
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55,754 (21,437)
7,460 (1,809)
39,968
24,978 (10,850)
3,753
(919)
16,962
12,281
(3,819)
2,130
(480)
10,112
12,921
(4,296)
2,242
(521)
10,346
7,739
(3,954)
1,636
(180)
5,241
9,810
(3,880)
2,474
(602)
7,802
12,001
(6,811)
2,360
(551)
6,999
19,033
(7,487)
2,875
(686)
13,735
4,266
(2,181)
1,264
9,025
(4,372)
–
–
–
3,349
4,653
– 167,808 (69,087) 26,194 (5,748) 119,167
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–
–
–
–
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483
692
1 Ceased being a Prescribed Officer on 30 June 2017
2 Became a Prescribed Officer on 1 July 2017. Remuneration paid in US dollars was converted at the average exchange rate of R13.41/US$ for the
six-month period ending 31 December 2017
GRP ADJUSTMENTS DURING 2018
Our remuneration practice makes provision for annual salary increases typically taking effect from March of each year. As has been set out in
Part 2 of this report, when reviewing base pay, whether for senior executives or for lower levels of employees, the increase in cost of living is
one of the key factors taken into account, with comparative ‘market positioning’ and benchmarked remuneration for similar roles in peer group
companies and individual performance also influencing the increase granted.
As stated in Part 1 of this report, the Executive Group leadership team waived remuneration increases in the 2018 increase cycle as a result of
the tight economic climate at the time of the review – the US dollar gold and PGM basket prices were languishing, compounded by a relatively
strong South African rand (relative to the US dollar) in the earlier part of 2018, and escalating input costs.
Nonetheless, despite this, the total salary earned in 2018 was still higher than the total salary earned in 2017, due to the level and timing of the
increases in GRP granted during 2017 and accounted for in 2018.
While the annual inflationary adjustments and other increases that were made in March 2017 represent a modest contribution to this difference,
much of the difference arises from the review of Executive remuneration undertaken in the middle of 2017. Peer remuneration comparisons, on
which the Remuneration Committee received independent expert inputs from Mercer and PwC, were updated to take account of the expanded
size and diversified operating footprint of the group with the associated increased complexity of organisational oversight arising from the very
substantial transformation of the Group into a multi-jurisdictional operator with the expansion into PGM mining in the United States. The large
increases in executive remuneration granted in July 2017 as a result of this review were deemed appropriate and market-related in recognition
of this organisational transformation.
Sibanye-Stillwater Integrated Report 2018 193
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
REMUNERATION REPORT CONTINUED
REMUNERATION FAIRNESS
Part 2 of this report addressed our policy and the principles applied in relation to Fair and Responsible Remuneration. This section sets out some
commentary and analysis undertaken to assess our progress in this regard.
The Group in South Africa has implemented a deliberate and integrated program since 2013 to facilitate the decline in the Gini co-efficient
(when applied to income inequalities), whilst retaining a competitive total reward construct at management levels.
The result is that at the operator level (i.e.: lowest levels of pay) the average level of base salaries since 2013 has increased by approximately
65% compared to 35% for supervisory employees and 30% for management over the same time period.
In addition to the deliberate action to implement higher salary increases over time at the lower employee levels, there have been deliberate
efforts to also focus on job enlargement and job enrichment wherever practically possible in order to try and stimulate employee mobility and
job re-grading.
Over this period the Group has extended a variety of ‘Total Reward’ elements to the lower level employees which had traditionally been
earmarked for supervisory and management levels such as:
• improved healthcare benefits
• better retirement benefits
• paid Family-Responsibility leave
• debt consolidation and work/life balance programmes
• career enhancement development aimed at improved career progression in support of our “Employment brand and value” proposition
focusing on pay, benefits and careers
By way of illustration, the table below demonstrates the progress that Sibanye-Stillwater has made using the Palma ratio as an indicator when
comparing differences in levels of base pay at the top and bottom of the Group in South Africa.
The Palma ratio represents the amount earned by the top 10% of a group of employees divided by the amount earned by the bottom 40% of
that group. The trend over the last five years is illustrated below. This measure demonstrates a steady decline in this ratio over the past five years
among Sibanye-Stillwater’s South African-domiciled employees. People in the top 10% at the SA operations were earning guaranteed pay on
average about 5.8 times what people in the bottom 40% were earning in 2018 compared to 7.2 times in 2014. Over the period the differential
in GRP has declined by just short of 20%.
Trends in remuneration fairness
1.9
1.8
1.7
1.6
1.5
1.4
Palma ratio (left axis)
Gini coefficient (right axis)
0.40
0.38
0.36
0.34
0.32
0.30
A declining trend is also observed when assessing remuneration data using the Gini co-efficient, which is an internationally accepted measure
of the distribution of income within a society or even within a group, with a value of 0 indicating complete equality, and 1 meaning that one
person receives all the income. This measure also demonstrates declining differentials in GRP. While not directly comparable it is interesting to
note by way of contrast, that South Africa’s Gini co-efficient, currently reported by the World Bank to be 0.65, is one of the highest, or most
unequal, in the world, although this is primarily due to the high levels of unemployment in the country.
194
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION GRP ADJUSTMENTS EFFECTIVE FROM MARCH 2019
The following increases were granted to executive directors and prescribed Officers (who comprise the Group Exco) with effect from March 2019:
Executive
Neal Froneman 1
Charl Keyter
Chris Bateman 2
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit 3
Themba Nkosi
Wayne Robinson
2017/2018 GRP
(R000/US$000)
Increase %
2018/2019 GRP
(R000/US$000)
12,500
6,895
US$600
4,175
3,819
4,193
5,409
4,747
3,918
4,682
5.3%
5.2%
2.8%
5.2%
5.1%
5.5%
5.3%
4.5%
4.9%
5.0%
13,163
7,254
US$617
4,393
4,014
4,424
5,696
4,961
4,110
4,916
1 Neal Froneman’s approved GRP is maintained in South African rands with a portion covering the time spent in the provision of strategic and
technical leadership to the Sibanye-Stillwater operations based in the United States to be paid under the dual services contract converted into US
dollars at a 12-month trailing exchange rate
2 Chris Bateman’s salary is reflected in US dollars
3 Cost-of-living increase only based on a default performance rating applicable to newly promoted employees
Base pay increases at operator levels of the organisation in South Africa averaged 6.7%. Cost-of-living increases at the level of traditional
officials, union members and the artisans group were 5.2% before taking into account any additional promotional or performance adjustments.
Non-executive directors, Susan van der Merwe and Nkosemntu Nika, during an underground mine visit at one of the SA gold operations
Sibanye-Stillwater Integrated Report 2018 195
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
STI OUTCOMES
As set out in Part 2 of this report, the STI bonus payments are based on measuring and rating the performance of the Group Exco against
operational measures, as itemised in the Group Performance scorecard and Personal performance of each executive based on their personal KPIs.
Operational performance outcomes during 2018
The table below shows the outcomes on the Group scorecard for 2018 relative to approved targets, which represents the largest element of
each executive’s assessment for bonus determination for the year (along with the assessment of their Personal Scorecards).
Addressing safety in the 2018 Group Scorecard
As mentioned in Part 1 of this report, in mid-2018, the Remuneration Committee chose to grant more weight to safety in the scorecard
applicable to the SA gold operations after the increased number of fatalities in comparison with previous years as a result of the two anomalous
safety incidents at these operations in the first half of 2018. It should be noted that, even before doing so, the weighting applicable to safety
had already been increased from 21% in the 2017 scorecard to 25% in the 2018 scorecard for all operating segments.
Nonetheless, the weighting of the fatalities element of safety performance for the South African gold operations was further increased and
the FIFR achieved during H2 was included as a specific additional measure with a weighting of 20% on its own in addition to the existing
Safety measures (which still included FIFR for the full year along with the SIFR component). Furthermore, this additional FIFR metric was set at
a more stretching target requiring a 30% improvement in the FIFR to the existing baseline. Until then (mid-2018), the safety score had carried
a weighting of 25% of the total Group performance score, split equally between the measurement of the FIFR and the SIFR. However, this
increased weighting for the FIFR measure for H2 2018 for the SA gold operations raised the FIFR weighting from the original 12.5% to 30% in
the final scorecard used for evaluation of performance.
This decision is considered to have been a contributing factor to the SA gold operations being fatality-free since August 2018, and in the
process, achieving an exceptional milestone in deep-level mining of more than three million fatality-free shifts.
It should be noted that, having not only substantially increased the weighting of the fatalities factor in the scorecard but also lifting the
‘height of the hurdle’ by adding more stretch to the targeted FIFR in the second half, the gold operations managed to not only exceed the
‘on target’ measure but to also nearly reach the ‘stretch’ target, which was for a 50% improvement to the baseline, during H2. Accordingly
this resulted in a ‘tale of two halves’ with a zero score for the FIFR for the full year against the original target and, as it turned out, a strong
result for the second half following the substantial increase in weighting of the FIFR. That may seem counterintuitive when you look at the
overall result for the year but if one is setting targets to drive particular behaviours and they are achieved then that would be deemed to be
an appropriate outcome.
OTHER CONSIDERATIONS
As has been indicated before, there are circumstances in which significant anomalous events arise that are beyond management’s control and
for which reasonable risk mitigation was unable to predict or diminish the impact. The Remuneration Committee is prepared to consider altering
the relevant scorecard KPI targets to allow for these. An example would be a major seismic event that renders an entire section of a mine
inaccessible or no longer possible to mine.
During the review of performance for 2018, the Remuneration Committee considered several justifiable cases in which some moderation of
particular KPI targets (such as development metres, metal production relative to target, etc.) might have been applicable. However, besides the
Safety metric already discussed and given the relative materiality of the possible resulting impact on performance and the experience of the year
as a whole, the Remuneration Committee decided not to allow any adjustments to any of the KPI targets on the scorecards for the executive
directors and prescribed officers.
The table below presents the applicable operational KPIs, threshold, on-target and maximum target levels, and actual achievement relating
thereto.
The overall score for the Group as a whole for 2018 was 80.68%. However, there were significantly different outcomes for each of the three main
operating units namely: 34.35% for the SA gold operations; 131.13% for the SA PGM operations and 76.01% for the US PGM operations.
196
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Sibanye-Stillwater short term incentive scorecard evaluation 2018
Contribution KPI
Weight Parameter
Sub-
weight
Threshold
On Target Maximum
0%
100%
200%
Actual
Rating
SA operations (81% contribution to Group)
SA gold operations (51% contribution to SA operations)
20% H2 Fatalities
100% FIFR during H2 (per million hours)
Safety
25%
FIFR (per million hours)
SIFR (per million hours)
100%
50%
50%
0.086
0.086
4.12
0.060
0.077
3.88
0.043
0.073
3.75
0.048
0.237
4.53
Production
30% Gold produced (kg)
100%
36 767
40 852
43 002
34 620
171.76%
0.00%
0.00%
0.00%
Cost
80%
30%
Operating cost per underground tonne
milled (R/tonne)
100%
2 266
2 060
1 957
2 528
0.00%
Sustainability
15%
Primary on-reef development
(including Burnstone) (m)
Primary off-reef development
(including Burnstone) (m)
50%
12 292
13 658
14 377
11 113
0.00%
50%
35 013
38 903
40 950
31 182
0.00%
SA gold operations overall
34.35%
SA PGM operations (49% contribution to SA operations)
Safety
Fatal injuries
25%
SIFR
(per million hours)
50%
50%
3
2.59
2
2.47
1
2.39
3
0.00%
2.09
200.00%
Production
30% Ounces produced (‘000 4E oz)
100%
1 147
1 275
1 307
1 305
192.63%
100%
Cost
30%
Operating cost including Ore Reserve
development before credits and direct
costs of by-product per 4E ounce
produced (R/4E oz)
100%
12 235
11 123
10 845
11 242
89.26%
Sustainability
15%
Primary on-reef development (m)
Primary off-reef development (m)
50%
50%
19 627
10 949
21 808
12 165
22 367
12 477
21 537
14 395
87.57%
200.00%
SA PGM operations overall
131.13%
SA operations overall
81.78%
US PGM operations (19% contribution to Group)
Safety
25% AIFR* per 200,000 hours
Production
Cost
100%
25%
25%
Returnable 2E PGM produced (‘000 oz)
Tonnes milled (‘000)
All-in sustaining cost ($/2E oz)
Recycling operations EBITDA ($ million)
Linear development (incl. Blitz capital
development) (‘000 ft)
Diamond drilling (‘000 ft)
100%
50%
50%
75%
25%
25%
25%
2.68
537.7
1326
717.9
10
64
760
2.42
597.4
1473
677.3
20
72
800
2.30
627.3
1547
656.9
27
76
2.79
592.6
1474
677.1
24.6
0.00%
91.97%
101.35%
100.72%
165.73%
71.2
90.30%
820
834.7
200.00%
Sustainability
25%
Blitz ventilation raise completion date
25% 31 Dec 2018
31 Oct 2018
30 Sep 2018 18 Dec 2018
21.31%
Blitz TBM/Benbow/56E combined linear
development (‘000 ft)
Stillwater Water Treatment Project
completion date
12.5%
9.20
10.20
10.70
7.03
0.00%
12.5%
September
July
May
July
100.00%
US PGM operations overall
Group
76.01%
80.68%
* All injury frequency rate
Sibanye-Stillwater Integrated Report 2018 197
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Personal performance outcomes for executive directors during 2018
As set out in Part 2 of this report, a rating scale of 1-5 is used for each factor and then a weighted average score is determined based on the outcomes
for each factor. A rating of 3 corresponds to an ‘on target’ score and equates to 100% whereas a rating of 5 is afforded a score of 200%.
CEO: Achieved a score of 140% for the personal performance component of his STI payment. During the year, the CEO continued to lead
the strategic transformation of Sibanye-Stillwater into a leading international precious metals producer through the acquisitive growth that is
strongly value accretive in the medium term. Among the notable performance highlights for the year were:
• Leadership that was instrumental in maintaining the positive safe production momentum at all of the PGM operations acquired during the
previous two years, with the production ramp up from the Blitz project at the United States operations initiated on the planned time scale
• Cemented Sibanye-Stillwater’s strategic position in the global PGM sector through preparatory work to secure a full mine to market value
chain for the SA PGM operations
• Delivered effective deleveraging through the successful conclusion of the bespoke streaming transaction with Wheaton Precious Metals,
complemented by additional commercial transactions
• Conclusion of the DRDGOLD and Aldebaran transactions to secure meaningful financial participation in non-core activities through business
ventures that will afford dedicated focus
While the regrettable and tragic safety incidents at the South African gold operations detracted from the overall performance (which is reflected
in the Group scorecard as opposed to the Personal scorecard), these are regarded as anomalous and not reflective of the values-based leadership
culture that is generally practised at Sibanye-Stillwater or the quality of the safe production management systems that are in place. Management
of the crisis that arose from these safety incidents was conducted in an exemplary manner through intensive and transparent interactions led
personally by the CEO.
CFO: Achieved a personal performance score of 135% for the personal performance component of his STI payment. The notable performance
highlights for the year were:
• Focused on the deleveraging of the balance sheet
• Concluded the gold and palladium streaming transaction with Wheaton Precious Metals
• Executed a US$395 million bond buy-back resulting in annual interest commitments reducing by US$25 million and by US$137 million over
the remaining life of these instruments
• Executed a gold hedging programme of ~25% of annual planned production providing downside protection at ~R558,000/kg which was well
above the realised average gold price of R535,929/kg
• Successfully executed the statutory audit tender process to appoint a new audit firm from commencement of the 2019 financial year, subject
to shareholder approval at the Annual General Meeting
• Maintained a high level of governance and internal control over financial reporting
Overall STI outcomes for executive directors and prescribed officers for 2018
The following table represents the 2018 individual performance assessments made for STI award purposes, together with the applicable cash
and Forfeitable (Bonus) shares allocated to the Executive Directors and the Prescribed Officers.
198
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION Executive STI incentives and bonus share value
Executive
Jan-Apr
Organisation
performance
Individual
Balanced
Scorecard
Overall
performance
Approved
annual GRP*
Cash
incentive*
R12,500
R8,649
R2,789
R3,940
Value of
Bonus
Shares*
R1,859
R2,627
Neal Froneman
May-Dec (RSA)
80.68%
140.0%
104.41%
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit 1
Themba Nkosi
Wayne Robinson
May-Dec (USA)
US$299.1
US$136.3
US$90.8
80.68%
76.01%
80.68%
81.78%
80.68%
81.78%
81.78%
81.78%
81.78%
135.0%
102.41%
R6,895
R4,237
R2,824
140.0%
95.21%
US$600.0
US$314.2
US$209.5
135.0%
102.41%
130.0%
96.24%
150.0%
108.41%
140.0%
100.0%
120.0%
125.0%
99.24%
87.24%
93.24%
94.74%
R4,175
R3,819
R4,193
R5,409
R4,316
R3,918
R4,682
R2,352
R2,022
R2,500
R3,221
R176
R2,009
R2,440
R1,568
R1,348
R1,667
R2,147
R117
R1,339
R1,626
* The financial figures in the table are in R000 or US$000 as the case may be
1 The amounts due to Shadwick Bessit are in respect of the period during the year for which he was appointed as a member of the Group Executive
Committee and a Prescribed Officer at the beginning of December 2018
LTI CONDITIONAL SHARE AWARDS MADE DURING 2018
The details for the determination of the Conditional (Performance) share awards made to Executive Directors and Prescribed Officers on
1 March 2018 are shown below. The basis on which these share awards were determined is explained in Part 2 of this report.
It is important to bear in mind that the value shown here represents the amount that was used to determine the actual number of shares to be
awarded using the applicable pricing formula at the time (March 2018). However, the number of shares that will finally vest in March 2021 at
the end of this three-year cycle will vary between 0% and 100%, depending on how well the performance conditions have been met by then.
Executive LTI and performance share value 2018
Executive
Neal Froneman
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Themba Nkosi
Wayne Robinson
* The financial figures in the table are in R000 or US$000 as the case may be
Award for on
target BSC
rating
% of on
target award
based on BSC
rating
% of annual
GRP awarded
Value of
Performance
Share award*
195%
180%
165%
165%
165%
165%
180%
165%
165%
200%
200%
175%
175%
150%
200%
200%
150%
150%
390%
360%
289%
289%
248%
330%
360%
248%
248%
R51,919
R26,361
US$1,784
R12,780
R9,982
R14,722
R20,661
R10,239
R12,236
Sibanye-Stillwater Integrated Report 2018 199
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
LTI CONDITIONAL SHARE AWARDS TO BE MADE DURING 2019
The details for the determination of the Conditional (Performance) share awards made to executive directors and prescribed officers on
1 March 2019 are shown below.
While the actual number of shares that will finally vest in March 2022 will vary, the value shown here applies to the maximum value at the time
of the granting of the award.
Executive LTI and bonus share value 2019
Executive
Neal Froneman
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit 1
Themba Nkosi
Wayne Robinson
Award for on
target BSC
rating
% of on
target award
based on BSC
rating
% of annual
GRP awarded
Value of
Performance
Share award*
195%
180%
165%
165%
165%
165%
180%
165%
165%
165%
175%
150%
175%
150%
150%
175%
175%
100%
150%
150%
341%
270%
289%
248%
248%
289%
315%
165%
248%
248%
R44,917
R19,585
US$1,781
R10,871
R9,934
R12,773
R17,942
R8,185
R10,171
R12,166
* The financial figures in the table are in R000 or US$000 as the case may be
1 The amounts due to Shadwick Bessit are in respect of the period during the year for which he was appointed as a member of the Group Executive
Committee and a Prescribed Officer at the beginning of December 2018
VESTING OUTCOMES FOR THE 2015 CONDITIONAL SHARE AWARDS VESTING IN 2018
For the Conditional shares awarded on 2 March 2015, the performance condition applied differed from those applicable to awards made since 2016.
The applicable conditions for these share awards only had one criterion, which was based on the change in the average daily closing Sibanye-
Stillwater share price over the three-year performance period as compared to two peer companies, Harmony and Pan African, as follows:
Sibanye-Stillwater rank
1
2
3
Performance condition
200%
Linear interpolation between first and third ranked companies
100%
The average daily share price appreciation achieved by the three companies was as follows over the vesting period.
Company
Harmony Gold Mining Co. Ltd
Sibanye-Stillwater
Pan African Resources
Average daily share price appreciation
0.0568%
(0.0110%)
(0.0396%)
On this basis, Sibanye-Stillwater was the second ranked company in the peer group, and the resultant vesting percentage applied to the awards
was 129.59%.
200
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION As a result, the number of shares that vested in 2018 for each of the relevant executives was as follows:
Executive
Hartley Dikgale
Neal Froneman
Charl Keyter
Dawie Mostert
Wayne Robinson
Richard Stewart
Robert Van Niekerk
Number of shares vesting
134,883
696,047
317,476
173,202
186,988
156,246
234,514
VESTING OUTCOMES FOR 2016 CONDITIONAL (PERFORMANCE) SHARE AWARDS VESTING IN MARCH 2019
The vesting conditions for the Conditional shares awarded in 2016 onwards have changed considerably from the above performance conditions.
These performance conditions are the same as those currently applicable to the awards made in 2018 and 2019 and can be referenced in Part 2
of this report.
In summary, they depend on the relative performance of Sibanye-Stillwater as measured on a TSR basis against a comparator group and on a
determination of the Group’s ROCE relative to the required return on equity.
The share awards granted in March 2016 will now vest in March 2019 following the application of these new performance conditions.
When assessing the TSR factor, which is applicable to 70% of the shares awarded, Sibanye-Stillwater’s performance was the lowest of the
comparator group over the three-year assessment period. Accordingly this factor achieved a vesting percentage score of 0%. While still
subject to audit review, indications are that the ROCE exceeded the threshold Return on Equity for the period by 2.07% resulting in a vesting
percentage score of 34.4%.
Since the ROCE condition is applicable to 30% of the shares awarded then, before the consideration of any discretion by the Remuneration
Committee, 10.3% of the Conditional shares awarded in March 2016 would vest in 2019.
However, given the increased number of fatalities in comparison with previous years as a result of the two anomalous safety incidents during the
first half of 2018, the Remuneration Committee considered this to be a significant negative impact on Sibanye-Stillwater’s ESG performance and
thus exercised its discretion to reduce the vesting outcome by 20%. Consequently, subject to final audit review, only 8.24% of the Conditional
shares awarded in March 2016 will vest in March 2019.
EXECUTIVE DIRECTORS AND PRESCRIBED OFFICERS’ EQUITY-SETTLED INSTRUMENTS
The tables below present the details of the awards made under share-based incentive schemes in 2018 and in prior years that have not yet
vested and the income received for awards settled during the 2018 financial year.
CFO and executive director, Charl Keyter during a mine visit at the US PGM operations
Sibanye-Stillwater Integrated Report 2018 201
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Share equity summary
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EXECUTIVE DIRECTORS
Neal Froneman
Conditional Share Awards
PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
537,115
910,086
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
2,011,752
186,772
36,403
80,470
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
4,440,824
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
51,716
BS - 1 March 2018 3 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 2 Mar 2018
R0.00 2 Sep 2019
–
–
2,069
285,957
285,959
Total
Charl Keyter
Conditional Share Awards
3,510,669
5,318,454
PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
244,985
413,540
PS - 1 March 2017 2 Mar 2017
R0.00 2 Mar 2020
1,019,482
72,491
16,542
40,779
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
2,261,131
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
25,861
BS - 1 March 2018 3 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 2 Mar 2018
R0.00 2 Sep 2019
–
–
1,034
140,114
140,114
Total
1,703,868
2,672,205
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
723,887
–
–
–
–
946,489
2,092,222
4,440,824
53,785
285,957
–
–
–
285,959
10,400
33,166
35,716
48,750
1,393
3,139
3,139
12,983
12,540
31,280
29,292
1,224
3,143
3,143
1,063,629
7,765,494
135,703
93,605
317,476
–
–
–
–
430,082
1,060,261
2,261,131
26,895
140,114
–
–
–
140,114
4,744
15,070
18,099
24,822
697
1,538
1,538
5,922
5,698
15,851
14,915
612
1,540
1,540
484,485
3,891,588
66,508
46,078
)
0
0
0
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b
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2,849
7,616
25,890
–
–
2,865
39,220
–
1,295
3,859
13,182
–
–
1,404
19,740
202
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
Share equity summary continued
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PRESCRIBED OFFICERS
Hartley Dikgale
Conditional Share Awards
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PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
104,084
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
192,536
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
580,521
30,799
7,701
23,221
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
861,041
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
15,404
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
–
–
616
69,579
69,579
Total
892,545
1,062,536
Dawie Mostert
Conditional Share Awards
PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
133,653
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
247,938
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
581,610
39,549
9,918
23,264
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
1,098,264
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
15,938
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
–
–
638
78,266
78,266
Total
Themba Nkosi
Conditional Share Awards
979,139
1,328,165
PS - 1 Sep 2016
1 Sep 2016
R0.00 2 Sep 2019
104,751
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
520,136
4,190
20,805
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
883,240
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
15,185
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
–
–
607
72,034
72,035
Total
Wayne Robinson
Conditional Share Awards
640,072
1,052,911
PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
144,292
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
267,170
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
652,656
42,696
10,687
26,106
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
1,055,500
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
16,890
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
–
–
676
70,691
70,692
Total
1,081,008
1,277,048
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
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0
0
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b
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c
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D
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u
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i
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F
–
603
2,198
5,020
–
–
697
8,517
–
776
2,202
6,403
–
–
784
134,883
–
–
–
16,020
69,579
–
200,237
603,742
861,041
–
–
–
69,579
2,015
7,016
10,306
9,452
415
764
764
2,516
2,653
9,026
5,680
365
765
765
220,482
1,734,599
30,733
21,769
173,202
–
–
–
–
257,856
604,874
1,098,264
16,576
78,266
–
–
–
78,266
2,588
9,035
10,326
12,056
429
859
859
3,231
3,416
9,043
7,244
377
860
860
268,044
2,039,260
36,153
25,032
10,165
–
–
–
108,941
540,941
883,240
15,792
72,034
–
–
–
72,035
3,850
9,234
9,696
409
791
791
1,443
8,087
5,826
359
792
792
87,826
1,605,157
24,770
17,299
186,988
–
–
–
–
277,857
678,762
1055,500
17,566
70,691
–
–
–
70,692
2,794
9,736
11,587
11,587
455
776
776
3,488
3,681
10,148
6,962
400
777
777
742
1,969
5,149
–
–
722
8,582
–
836
2,471
6,154
–
–
708
275,245
2,082,811
37,711
26,233
10,169
Sibanye-Stillwater Integrated Report 2018 203
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
REMUNERATION REPORT CONTINUED
Share equity summary continued
e
t
a
d
d
r
a
w
A
e
c
i
r
p
d
r
a
w
A
e
t
a
d
g
n
i
t
s
e
V
d
r
a
w
A
PRESCRIBED OFFICERS continued
Richard Stewart
Conditional Share Awards
f
o
e
v
i
s
u
l
c
n
i
d
e
d
r
a
w
a
s
e
r
a
h
s
f
o
r
e
b
m
u
N
d
r
a
w
a
n
o
i
t
i
d
n
o
c
e
c
n
a
m
r
o
f
r
e
p
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
7
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
120,569
PS - 3 Nov 2015
3 Nov 2015
R0.00 3 Nov 2018
291,336
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
261,437
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
779,114
35,677
11,653
10,457
31,165
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
1,260,423
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
16,733
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
–
–
669
85,900
85,900
d
e
t
i
e
f
r
o
f
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
–
–
–
–
–
–
–
–
d
e
s
i
c
r
e
x
e
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
r
a
e
y
e
h
t
g
n
i
r
u
d
156,246
302,989
r
a
e
y
e
h
t
g
n
i
r
u
d
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
8
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
–
–
–
–
–
271,894
810,279
1260,423
17,402
85,900
–
–
–
85,900
)
0
0
0
R
(
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
e
c
a
F
2,335
3,113
9,527
13,832
13,837
451
943
943
)
0
0
0
R
(
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
r
i
a
F
2,914
7,042
3,602
12,114
8,314
396
944
944
)
0
0
0
R
(
8
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
u
l
a
v
r
i
a
F
–
–
818
2,949
7,348
–
–
861
Total
Robert van Niekerk Conditional Share Awards
1,469,189
1,521,844
–
562,537
2,428,496
44,980
36,271
11,977
PS - 2 March 2015 2 Mar 2015
R0.00 2 Mar 2018
180,966
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
287,477
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
765,144
PS - 1 Sep 2017
1 Sep 2017
R0.00 1 Sep 2020
111,676
53,548
11,499
30,606
4,467
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
–
1,773,860
Forfeitable Share Awards
BS - 1 March 2017 1 Mar 2017
R0.00 1 Sep 2018
20,120
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
–
–
805
136,408
136,410
Total
Chris Bateman
Conditional Share Awards
1,365,383
2,147,603
PS - 1 Sep 2017
1 Sep 2017
R0.00 1 Sep 2020
413,920
16,557
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
Forfeitable Share Awards
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
Total
Shadwick Bessit ¹ Conditional Share Awards
–
–
–
1,810,808
136,632
136,632
413,920
2,100,629
PS - 1 March 2016 1 Mar 2016
R0.00 1 Mar 2019
259,954
PS - 1 March 2017 1 Mar 2017
R0.00 2 Mar 2020
568,821
PS - 1 March 2018 1 Mar 2018
R0.00 1 Mar 2021
737,114
–
–
–
PS - 3 Dec 2018
3 Dec 2018
R0.00 3 Dec 2021
-
49,288
Forfeitable Share Awards
BS - 1 March 2018 1 Mar 2018
R0.00 3 Dec 2018
BS - 1 March 2018 1 Mar 2018
R0.00 2 Sep 2019
98,619
98,620
–
–
1,763,128
49,288
Total
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
234,514
–
–
–
–
–
298,976
795,750
116,143
1,773,860
20,925
136,408
–
–
–
136,410
3,504
10,476
13,584
2,303
19,473
542
1,497
1,497
4,374
3,961
11,897
2,635
11,701
476
1,499
1,499
–
900
2,897
423
10,342
–
–
1,367
391,847
3,121,139
52,877
38,043
15,928
–
–
430,477
1,810,808
8,537
19,878
9,768
11,944
1,584
10,557
136,632
–
–
136,632
1,500
1,500
1,502
1,502
–
1,369
136,632
2,377,917
31,415
24,715
13,510
–
–
–
–
259,954
568,821
737,114
49,288
98,619
–
–
98,620
9,109
9,710
8,092
425
1,083
1,083
3,444
8,504
4,862
336
1,084
1,084
782
2 071
4,297
336
–
988
98,619
1,713,797
29,501
19,314
8,474
¹ Became a prescribed officer on 1 December 2018. The initial holdings reflect all awards made but not settled as at the date he assumed the role of
prescribed officer, with awards, forfeitures and exercises only provided for the period for which he was a prescribed officer.
204
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
NON-EXECUTIVE DIRECTOR FEES
Fees and reimbursements paid in respect of Directors’ 2018 Board and Committee duties are presented in the table below exclusive of the VAT
component that is included in the fees schedule as approved by shareholders.
Non-executive director*
Directors Fees
Committee Fees
Tim Cumming
Savannah Danson
Barry Davison
Rick Menell
Sello Moloko
Nkosemntu Nika
Keith Rayner
Sue van der Merwe
Jerry Vilakazi
Grand Total
* Financial figures in table are in R000
954
953
953
954
1,802
922
954
954
945
589
528
696
742
_
513
695
536
344
Expense
allowance
155
_
_
27
_
_
74
_
_
Total
1,698
1,480
1,649
1,723
1,802
1,435
1,723
1,491
1,289
9,392
4,643
257
14,291
In reviewing the fees for non-executive directors, the Remuneration Committee considered a detailed report and comparative analysis of the
level of fees paid relative to other comparator companies.
The various level of fees – for Board members, committee members, chairs of boards / committees – were compared against 12 comparator
companies. Only three of those 12 companies were dual listed with the remainder having only a South African listing.
Against this group, all categories of Sibanye-Stillwater’s board fees, with the exception of the ‘main board membership’ fee, were at, or just
above, the median of the comparator group (using the compa-ratio approach). However, when the ‘main board membership’ fee for Sibanye-
Stillwater was compared to the three dual listed companies (considered fair comparisons to Sibanye-Stillwater) the Group’s fees were lower than
all three of the comparators and about 30% below the median of that group of three.
In summary, if Sibanye-Stillwater was only listed in South Africa and had pre-dominantly local operations then its Non-Executive Director fees –
bar the main board fee – would be appropriate. However, as the Group is both dual-listed and multinational, with exception of the main board
fees, all the fees appear to be well below appropriate levels.
The Remuneration Committee has had insufficient time to gather further information after their initial deliberation on this matter in February
2019, but will do so and will reconsider the matter further during the course of 2019.
Accordingly, it is proposed to apply a nominal 5% cost-of-living increase across the board to all fee categories for Non-Executive Directors.
The proposed fees, set out in Special resolution number 1 in the Notice of AGM and cited on a VAT inclusive basis, reflect this 5% adjustment,
which is slightly lower than the expected change in the South African CPI over the coming year and in line with the increase approved in the
previous year.
Per annum (Rand)
The Chair of the Board
The Chair of the Audit Committee
The Chairs of the Nominating and Governance Committee, Risk Committee,
Remuneration Committee, Social and Ethics Committee, and Safety and Health
Committee (excluding the Chairman of the Board)
Members of the Board (excluding the Chairman of the Board)
Members of the Audit Committee (excluding the Chairman of the Board)
Members of the Nominating and Governance Committee, Risk Committee,
Remuneration Committee, Social and Ethics Committee, and Safety and Health
Committee (excluding the Chairman of the Board)
NON-BINDING VOTE ON IMPLEMENTATION REPORT
2019
2,215,697
423,938
2018
5% increase
2,110,188
403,750
105,509
20,188
261,453
249,003
1,171,366
1,115, 587
220,094
209,613
12,450
55,779
10,481
165,439
157,561
7,878
The Remuneration Implementation report, as set out here in Part 3 of this report, will be tabled for a separate non-binding advisory vote at
the AGM. (See Ordinary resolution number 15 in the Notice of AGM).
Sibanye-Stillwater Integrated Report 2018 205
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION INTRODUCTION
VIEW FROM THE TOP
HOW WE PERFORMED
GOVERNANCE
ANCILLARY INFORMATION
05
FEEDBACK
We would appreciate your feedback on this
report. Please send any comments and questions
you might have on the usefulness and relevance
of the information presented in this report to:
James Wellsted
Senior Vice President: Investor Relations
Email: james.wellsted@sibanyestillwater.com
Henrika Ninham
Manager: Investor Relations
Email: henrika.ninham@sibanyestillwater.com
207 Statement of assurance
210 Shareholder information
212 Foward-looking statements
213 Administrative and corporate information
206
Sibanye-Stillwater Integrated Report 2018
sectionancillary information STATEMENT OF ASSURANCE
To the Directors of Sibanye-Stillwater Limited
We have undertaken a limited assurance engagement on selected sustainability key performance indicators (“selected sustainability KPIs”), as
described below, and presented in the Sibanye Gold Limited, trading as Sibanye-Stillwater (“Sibanye-Stillwater”), Integrated Annual Report for
the year ended 31 December 2018 (“the Report”). This engagement was conducted by a multi-disciplinary team including health, safety, social,
environmental and assurance specialists with relevant experience in sustainability reporting.
SUBJECT MATTER
We have been engaged to provide a limited assurance conclusion in our report on the following selected sustainability KPIs, referenced by
foonote 5 in the Five-year Statistical Review on pages 12 to 17 of the Report. The selected sustainability KPIs described below have been
prepared in accordance with the criteria set out in (a), (b) and (c) of the table below, which is collectively referred to as Sibanye-Stillwater’s
reporting criteria.
Selected sustainability KPIs
Unit of measurement
Scope of coverage
(a) Prepared in accordance with the Global Reporting Initiative Sustainability Reporting Standards (“GRI Standards”)
Environment
Total CO2 equivalent emissions, Scope 1-2
Total CO2 equivalent emissions, Scope 3
Electricity consumed
Number of environmental incidents – level 3 and higher
Total water withdrawn
Diesel
SO2 emissions
Health
Tonnes
Tonnes
MWh
Number
ML
TJ
Tonnes
Number of cases of silicosis reported
Number of cases of noise induced hearing loss (NIHL) reported
Number of cases
Number of cases
Number of cases of chronic obstructive airways diseases (COAD) reported
Number of cases
Cardiorespiratory tuberculosis (TB) – new and retreatment cases
TB incidence (new and relapse cases)
Highly-active antiretroviral treatment (HAART) patients on treatment
and active employment
Number of cases
Number of cases
Number of patients
Sibanye-Stillwater Group
US PGM operations
Sibanye-Stillwater Group
HIV prevalence of employees
Safety
Lost time injury frequency rate (LTIFR)
Medically treated injury frequency rate (MTIFR)
Number of fatalities
Social
% of HIV Prevalence in employees
Rate
Rate
Number
Sibanye-Stillwater Group
Total socio-economic development (SED) spend in rands
R million
Sibanye-Stillwater Group
(b) Prepared in compliance with the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and
Minerals Industry (“BBSEEC”) (2002) and related scorecard (2004)
Approved social and labour plan (SLP) projects
R million
SA operations only
(c) Prepared in compliance with the Amendment to the BBSEEC (2010) and related scorecard (2010)
Employment equity
Percentage HDSAs in management who are classified as designated
groups and who are employed at management levels (excluding foreign
nationals and white males)
Procurement and enterprise development
Total procurement spend from BEE entities
BEE procurement spend: capital goods
BEE procurement spend: services
BEE procurement spend: consumables
Total Percentage at
• Top Management (Board)
• Senior (Executives)
SA operations only
• Middle (E Band)
• Junior (D Band)
R million
Percentage (%)
Percentage (%)
Percentage (%)
SA operations only
Sibanye-Stillwater Integrated Report 2018 207
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION STATEMENT OF ASSURANCE CONTINUED
DIRECTORS’ RESPONSIBILITIES
The Directors are responsible for the selection, preparation and presentation of the selected sustainability KPIs in accordance with Sibanye-
Stillwater’s reporting criteria. This responsibility includes the identification of stakeholders and stakeholder requirements, material issues,
commitments with respect to sustainability performance and design, implementation and maintenance of internal control relevant to the
preparation of the Report that is free from material misstatement, whether due to fraud or error.
The Directors are also responsible for determining the appropriateness of the measurement and reporting criteria in view of the intended users
of the selected sustainability KPIs and for ensuring that those criteria are publicly available to the Report users.
INHERENT LIMITATIONS
Greenhouse gas emissions quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine
emissions factors and the values needed to combine emissions of different gases.
OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with the independence and all other ethical requirements of the Code of Ethics for Professional Accountants issued by
the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional
competence and due care, confidentiality and professional behaviour.
KPMG Services Proprietary Limited applies the International Standard on Quality Control 1 and accordingly maintains a comprehensive system
of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements.
PRACTITIONER’S RESPONSIBILITY
Our responsibility is to express a limited assurance conclusion on the selected sustainability KPIs based on the procedures we have performed
and the evidence we have obtained. We conducted our assurance engagement in accordance with the International Standard on Assurance
Engagements (“ISAE”) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information, issued by the
International Auditing and Assurance Standards Board. That Standard requires that we plan and perform our engagement to obtain limited
assurance about whether the selected sustainability KPIs are free from material misstatement.
A limited assurance engagement undertaken in accordance with ISAE 3000 (Revised) involves assessing the suitability in the circumstances of
Sibanye-Stillwater’s use of its reporting criteria as the basis of preparation for the selected sustainability KPIs, assessing the risks of material
misstatement of the selected sustainability KPIs whether due to fraud or error, responding to the assessed risks as necessary in the circumstances,
and evaluating the overall presentation of the selected sustainability KPIs.
A limited assurance engagement is substantially less in scope than a reasonable assurance engagement in relation to both risk assessment
procedures, including an understanding of internal control, and the procedures performed in response to the assessed risks. The procedures
we performed were based on our professional judgement and included inquiries, observation of processes followed, inspection of documents,
analytical procedures, evaluating the appropriateness of quantification methods and reporting policies, and agreeing or reconciling with
underlying records.
Given the circumstances of the engagement, in performing the procedures listed above we:
• Interviewed management and data owners to obtain an understanding of the internal control environment, risk assessment process and
information systems relevant to the sustainability reporting process
• Inspected documentation to corroborate the statements of management and data owners in our interviews
• Enquired about and inspected the processes and systems to generate, collate, aggregate, monitor and report the selected sustainability KPIs
• Inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting
processes against the reporting criteria
• Performed a controls walkthrough of identified key controls for selected sustainability KPIs
• Evaluated the reasonableness and appropriateness of significant estimates and judgements made by the Directors in the preparation of the
selected sustainability KPIs
• Undertook a selection of site visits and desktop reviews of the selected sustainability KPIs at the Sibanye-Stillwater operations in South Africa
and the United States
• Evaluated whether the selected sustainability KPIs presented in the Report are consistent with our overall knowledge and experience of
sustainability management and performance at Sibanye-Stillwater
208
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable
assurance engagement. As a result, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had we performed a reasonable assurance engagement. Accordingly, we do not express a reasonable assurance
opinion about whether Sibanye-Stillwater’s selected sustainability KPIs have been prepared, in all material respects, in accordance with the
Sibanye-Stillwater’s reporting criteria.
LIMITED ASSURANCE CONCLUSION
Based on the procedures we have performed and evidence we have obtained, nothing has come to our attention that causes us to believe that
the selected sustainability KPIs, as set out in the table, included in the Subject Matter paragraph above, for the year ended 31 December 2018,
are not prepared, in all material respects, in accordance with Sibanye-Stillwater’s reporting criteria.
OTHER MATTER
The maintenance and integrity of Sibanye-Stillwater’s website is the responsibility of Sibanye-Stillwater management. Our procedures did not
involve consideration of these matters and, accordingly, we accept no responsibility for any changes to either the information in the Report or
our independent limited assurance report that may have occurred since the initial date of its presentation on the Sibanye-Stillwater website.
RESTRICTION OF LIABILITY
Our work has been undertaken to enable us to express a limited assurance conclusion on the selected sustainability KPIs to the Directors of
Sibanye-Stillwater in accordance with the terms of our engagement and for no other purpose. We do not accept or assume liability to any party,
other than Sibanye-Stillwater, for our work, for this report or for the conclusion we have reached.
KPMG Services Proprietary Limited
Per PD Naidoo
Director
KPMG Crescent
85 Empire Road
Parktown
Johannesburg 2193
29 March 2019
Sibanye-Stillwater Integrated Report 2018 209
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION SHAREHOLDER INFORMATION
SHAREHOLDER INFORMATION
Share information
Sector
Issued share capital
JSE
Ticker: SGL
Market capitalisation
at 31 December 2018
at 31 December 2017
at 31 December 2018
at 31 December 2017
12-month average daily share trading volumes
year ended 31 December 2018
year ended 31 December 2017
Resources
2,266,260,491
2,168,721,220
R22.7 billion
R34.3 billion
10,567,124
9,080,455
Share price statistics
12-month low and high for 2018
Low: R7.08 High: R16.64
12-month low and high for 2017
Low: R14.15 High: R35.40
closing price as at 31 December 2018
R10.02
NYSE
Ticker: SBGL
Market capitalisation
at 31 December 2018
at 31 December 2017
12-month average daily share trading volumes
on the NYSE and other US platforms
year ended 31 December 2018
year ended 31 December 2017
US$1.6 billion
US$2.8 billion
3,874,676
4,145,245
Share price statistics
12-month low and high for 2018
Low: US$2.05 High: US$5.27
12-month low and high for 2017
Low: US$4.14 High: US$6.65
Free float
ADR ratio
ADRs outstanding
closing price as at 31 December 2018
31 December 2018
31 December 2017
US$2.83
80%
1 ADR:4 ordinary shares
222,762,141
138,926,006
Ownership summary at 31 December 2018 – top 10 shareholders
Rank
Investor
Current combined holding of shares in issue
% of shares in issue
1
2
3
4
5
6
7
8
9
Gold One International Limited
Government Employees Pension Fund (PIC)
Exor Investments UK
Investec Asset Management
Van Eck Associates Corporation
Hosking Partners
Dimensional Fund Advisors
Vanguard Group
BlackRock Inc
10
Majedie Asset Management (UK)
454,608,714
223,673,695
184,601,372
113,304,131
122,809,448
86,245,293
71,657,654
61,276,405
37,035,123
27,584,364
20.06
9.87
8.15
5.00
4.98
3.81
3.16
2.70
1.63
1.22
210
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION
Registered shareholder spread at 31 December 2018
Number of
holders
% of total
shareholders
1-1,000 shares
1,001-10,000 shares
10,001-100,000 shares
100,001-1,000,000 shares
1,000,001 shares and above
Total
Public and non-public shareholdings
Shareholder type
Non-public shareholders
Directors
Share trust
Own holding
Public shareholders
Total
0.56 2,137,762,297
18,329
100 2,266,260,491
Number of
holders
% of total
shareholders
Number of
shares
1,987,547
12,337,289
35,042,377
79,130,981
Number of
shares
29,451,655
7,944,067
19,233,755
2,273,833
72.10
19.72
6.19
1.43
0.05
0.04
0.00
0.01
100 2,236,808,836
100 2,266,260,491
% of issued
capital
0.09
0.54
1.55
3.49
94.33
100
% of issued
capital
1.30
0.35
0.85
0.10
98.70
100
13, 216
3,614
1, 134
263
102
10
8
1
1
18,319
18,329
Foreign custodian holdings of more than 3% at 31 December 2018
Bank of New York Depositary Receipts
State Street Bank and Trust Company
Citibank
JP Morgan Chase Bank
Investment management shareholdings of more than 3% at 31 December
Number of
shares
% of issued
capital
566,937,909
176,103,999
78,318,008
67,039,472
26.14
8.12
3.61
3.09
2018
2017
2016
Number of
shares
% of shares in
issue
Number of
shares
% of shares in
issue
Number of
shares
Number of
shares
Beneficial shareholdings
Government Employees Pension
Fund (PIC)
Exor Investments
Investec Asset Management
223,673,695
184,601,372
113,304,131
Van Eck Associates Corporation
122,809,448
Hosking Partners LLP
Dimensional Fund Advisors
86,245,293
71,657,654
Figures may not add due to rounding
9.87
8.15
5.00
4.98
3.81
3.16
190,930,628
NA
145,619,201
232,647,340
47,388,289
60,314,329
8.80
NA
6.71
76,941,387
NA
9,026,558
10.73
53,555,603
2.19
2.78
9,998,424
22,462,462
8.28
NA
0.97
5.76
1.08
2.42
Sibanye-Stillwater Integrated Report 2018 211
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION DISCLAIMER AND FORWARD-LOOKING STATEMENTS
DISCLAIMER
This Integrated Annual Report (“Report”) is for informational purposes only and does not constitute or form a part of any offer or solicitation
to purchase or subscribe for securities in the United States or any other jurisdiction nor a solicitation of any vote of approval, nor shall there be
any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The shares to be issued in connection with the offer for Lonmin plc (“Lonmin” and the “New Sibanye
Shares”, respectively) have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”) and, accordingly, may
not be offered or sold or otherwise transferred in or into the United States except pursuant to an exemption from the registration requirements
of the Securities Act. The New Sibanye Shares are expected to be issued in reliance upon the exemption from the registration requirements of the
Securities Act provided by Section 3(a)(10) thereof.
This Report is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality,
state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would
require any registration or licensing within such jurisdiction.
No statement in this Report should be construed as a profit forecast.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the “safe harbour” provisions of the United States Private Securities
Litigation Reform Act of 1995.
These forward-looking statements, including, among others, those relating to Sibanye-Stillwater’s future business prospects, revenues and income,
the potential benefits of past, ongoing and future acquisitions (including statements regarding growth, cost savings, benefits from and access
to international financing and financial re-ratings), PGM pricing expectations, levels of output, supply and demand, information relating to the
Sibanye-Stillwater’s underground Blitz PGM project adjacent to the east of the existing Stillwater Mine designed to explore, define and extract the
PGM resource along the far eastern extent of the J-M Reef (Blitz Project), and estimations or expectations of enterprise value, adjusted EBITDA and
net asset values wherever they may occur in this annual report, are necessarily estimates reflecting the best judgement of the senior management
and directors of Sibanye-Stillwater.
All statements other than statements of historical facts included in this report may be forward-looking statements. Forward-looking statements
also often use words such as “will”, “forecast”, “potential”, “estimate”, “expect” and words of similar meaning. By their nature, forward-
looking statements involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of
various important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on such statements.
The important factors that could cause Sibanye-Stillwater’s actual results, performance or achievements to differ materially from those in the
forward-looking statements include, among others, changes in the market price of gold, PGMs and/or uranium; fluctuations in exchange rates,
currency devaluations, inflation and other macro-economic monetary policies; the occurrence of labour disruptions and industrial action; changes
in relevant government regulations, particularly environmental, tax, health and safety regulations and new legislation affecting water, mining,
mineral rights and business ownership, including any interpretations thereof which may be subject to dispute; power disruptions, constraints and
cost increases; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health
and safety issues; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; the occurrence of hazards
associated with underground and surface gold, PGMs and uranium mining; failure of Sibanye-Stillwater to comply with various lender covenants
and restrictions and difficulties in obtaining additional financing or refinancing; Sibanye-Stillwater’s ability to service its bond instruments (including
high yield bonds and convertible bonds); plans and objectives of management for future operations; the ability to achieve anticipated efficiencies
and other cost savings in connection with, and the ability to successfully integrate, past, ongoing and future acquisitions, as well as at existing
operations; Sibanye-Stillwater’s ability to achieve steady state production at the Blitz project; the ability of Sibanye-Stillwater to complete any
ongoing or future acquisitions; Sibanye-Stillwater’s ability to obtain the benefits of any streaming arrangements or pipeline financing; operating in
new geographies and regulatory environments where Sibanye-Stillwater had no previous experience; Sibanye-Stillwater’s ability to implement its
strategy and any changes thereto; the success of Sibanye-Stillwater’s business strategy, exploration and development activities; Sibanye-Stillwater’s
future financial position, plans, strategies, objectives, capital expenditures, projected costs and anticipated cost savings, financing plans, debt
position and its ability to reduce debt leverage; the availability, terms and deployment of capital or credit; changes in assumptions underlying
Sibanye-Stillwater’s estimation of their current mineral reserves and resources; supply chain shortages and increases in the price of production
inputs; economic, business, political and social conditions in South Africa, Zimbabwe, the United States, the United Kingdom and elsewhere;
the ability of Sibanye-Stillwater to comply with requirements that it operate in a sustainable manner; failure of information technology and
communications systems; Sibanye-Stillwater’s ability to hire and retain senior management or sufficient technically skilled employees, as well as
their ability to achieve sufficient representation of historically disadvantaged South Africans’ in management positions; the adequacy of insurance
coverage; uncertainty regarding the title to Sibanye-Stillwater’s properties; any social unrest, sickness or natural or man-made disaster at informal
settlements in the vicinity of some of Sibanye-Stillwater’s operations; and the impact of HIV, tuberculosis and other contagious diseases. These
forward-looking statements speak only as of the date of this report. Sibanye-Stillwater expressly disclaims any obligation or undertaking to update
or revise any forward-looking statement (except to the extent legally required).
212
Sibanye-Stillwater Integrated Report 2018
INTRODUCTIONVIEW FROM THE TOPPERFORMANCE REVIEWGOVERNANCEANCILLARY INFORMATION ADMINISTRATION AND CORPORATE INFORMATION
SIBANYE GOLD LIMITED
TRADING AS SIBANYE-STILLWATER
Incorporated in the Republic of
South Africa
Registration number 2002/031431/06
Share code: SGL
Issuer code: SGL
ISIN: ZAE E000173951
LISTINGS
JSE: SGL
NYSE: SBGL
WEBSITE
www.sibanyestillwater.com
REGISTERED AND
CORPORATE OFFICE
Constantia Office Park
Cnr 14th Avenue & Hendrik Potgieter Road
Bridgeview House
Ground floor
Weltevreden Park 1709
South Africa
Private Bag X5
Westonaria 1780
South Africa
Tel: +27 11 278 9600
Fax: +27 11 278 9863
COMPANY SECRETARY
Lerato Matlosa
Tel: +27 10 493 6921
Email:
lerato.matlosa@sibanyestillwater.com
DIRECTORS
Sello Moloko* (Chairman)
Neal Froneman (CEO)
Charl Keyter (CFO)
Savannah Danson*
Timothy Cumming*
Barry Davison*#
Rick Menell*
Nkosemntu Nika*
Keith Rayner*
Susan van der Merwe*
Jerry Vilakazi*
Harry Kenyon-Slaney*
* Independent non-executive
# Retiring on 28 May 2019
INVESTOR ENQUIRIES
James Wellsted
Senior Vice President: Investor Relations
Cell: +27 83 453 4014
Tel: +27 10 493 6923
Email:
james.wellsted@sibanyestillwater.com or
ir@sibanyestillwater.com
JSE SPONSOR
JP Morgan Equities South Africa
Proprietary Limited
Registration number 1995/011815/07
1 Fricker Road
Illovo
Johannesburg 2196
South Africa
Private Bag X9936
Sandton 2196
South Africa
OFFICE OF THE UNITED KINGDOM
SECRETARIES – LONDON
St James’s Corporate Services Limited
Suite 31
Second floor
107 Cheapside
London EC2V 6DN
United Kingdom
Tel: +44 20 7796 8644
Fax: +44 20 7796 8645
AUDITORS
For the year ended 31 December 2018
KPMG Inc.
KPMG Crescent
85 Empire Road
Parktown 2193
Johannesburg
South Africa
Tel: +27 11 647 7111
For the year ended 31 December 2019
Ernst & Young Inc (EY)
102 Rivonia Road
Sandton
Private Bag X14
Sandton
South Africa
Tel: +27 11 772 3000
AMERICAN DEPOSITARY RECEIPTS
TRANSFER AGENT
BNY Mellon Shareowner Services
PO Box 358516
Pittsburgh
PA 15252-8516
US toll free: +1 888 269 2377
+1 201 680 6825
Tel:
Email:
shrrelations@bnymellon.com
Tatyana Vesselovskaya
Relationship Manager
BNY Mellon
Depositary Receipts
Direct line: +1 212 815 2867
+1 203 609 5159
Mobile:
Fax:
+1 212 571 3050
Email:
tatyana.vesselovskaya@bnymellon.com
TRANSFER SECRETARIES
SOUTH AFRICA
Computershare Investor Services
Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank 2196
PO Box 61051
Marshalltown 2107
South Africa
Tel: +27 11 370 5000
Fax: +27 11 688 5248
TRANSFER SECRETARIES
UNITED KINGDOM
Link Asset Services
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
England
Tel: 0871 664 0300 (calls cost 10p a
minute plus network extras, lines are
open 8:30am – 5:00pm Mon – Fri) or
+44 20 8639 3399 (overseas)
Fax: +44 20 8658 3430
Email:
ssd@capitaregistrars.com
Sibanye-Stillwater Integrated Report 2018 213
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W W W . S I B A N Y E S T I L L W AT E R . C O M