Ni
C u
Pd
Ru
R h
Ir
Au
P t
C r
INTEGRATED
REPORT
9
1
0
2
OUR 2019 REPORTS
These reports cover the financial
year from 1 January 2019 to
31 December 2019.
D
E
T
A
R
G
E
T
N
I
9
1
0
2
T
R
O
P
E
R
S
E
V
R
E
S
E
R
L
A
R
E
N
M
D
N
A
I
S
E
C
R
U
O
S
E
R
L
A
R
E
N
M
I
9
1
0
2
T
R
O
P
E
R
L
A
U
N
N
A
F
O
E
C
I
T
O
N
D
N
A
9
1
0
2
G
N
I
T
E
E
M
L
A
R
E
N
E
G
T
R
O
P
E
R
D
E
S
I
R
A
M
M
U
S
L
A
I
C
N
A
N
I
F
L
A
U
N
N
A
9
1
0
2
T
R
O
P
E
R
L
A
I
C
N
A
N
I
F
Y
N
A
P
M
O
C
9
1
0
2
S
T
N
E
M
E
T
A
T
S
Sibanye Stillwater Limited
(Sibanye-Stillwater), a leading
international precious metals
producer, mining and processing
platinum group metals
(PGMs) and gold. We have a
geographically diverse portfolio
of operations and projects in
the United States (US) and
southern Africa (SA). The Group is
domiciled and headquartered in
South Africa.
USING THIS INTEGRATED REPORT
This report, produced primarily for shareholders
and investors, as well as for other stakeholders,
aims to describe Sibanye-Stillwater’s progress in
delivering on our strategy and its related strategic
focus areas, and on our purpose and vision to
create value, responsibly and sustainably, over the
short, medium and long term.
In compiling this report, we considered and/
or complied with the following frameworks,
standards, and guidelines:
International
Integrated
Reporting
Framework
International
Council on
Mining and
Metals (ICMM)
United Nations
Global Compact
(UNGC)
Sustainable
Development
Goals (SDGs)
Global Reporting
Initiative (GRI)
Standards
The
Johannesburg
Stock Exchange
(JSE) Listings
Requirements
Mining Charter
and related
social and
labour plans
World Gold
Council’s
Responsible
Mining
Principles
King Report
on Corporate
Governance for
SA, 2016 (King IV)
Companies Act
South Africa
71 of 2008, as
amended
International
Financial
Reporting
Standards (IFRS)
Task Force on
Climate-Related
Financial
Disclosures
LEGEND OF ICONS USED IN
THIS REPORT
LINKS TO SUPPLEMENTARY INFORMATION
Refers to related information elsewhere in
the Integrated Report
Refers to related information available
online at the url provided
Refers to a related fact sheet
available online
STRATEGIC FOCUS AREAS
Building a
values-based culture
Focusing on safe production
and operational excellence
Deleveraging our balance
sheet
Addressing our
South African discount
Pursuing value-accretive
growth
Environmental, social and
governance (ESG)
CAPITAL RESOURCES
HUMAN
CAPITAL
FINANCIAL
CAPITAL
NATURAL
CAPITAL
SOCIAL AND
RELATIONSHIP
CAPITAL
MANUFACTURED
CAPITAL
INTELLECTUAL
CAPITAL
SUPPORTING FACT SHEETS AND DOCUMENTS
AVAILABLE ONLINE INCLUDE:
• Care for iMali: Taking care of personal finance
• Biomonitoring of rivers and biodiversity
• Working together: Good Neighbor Agreement (GNA)
• Generating clean energy: Beatrix methane capture and
destruction project
• Combatting illegal mining
• Social and labour plans: Summary of projects in South Africa
• Environmental incidents in 2019: Level 3 and higher
• GRI Content Index 2019
• King IV Disclosure 2019
• Definitions of sustainability/ESG indicators
Online
All of our 2019 reports, together with supporting
information, are available on our website at:
www.sibanyestillwater.com
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENESibanye-Stillwater Integrated Report 20183AuPdNi2019IrINTEGRATED REPORTCuRhCrPtRuOUR MINING IMPROVES LIVESSibanye-Stillwater Integrated Report 20186AuPdNiIrCuRhCrPtRu2019MINERAL RESOURCES AND MINERAL RESERVES REPORT OUR MINING IMPROVES LIVESSibanye-Stillwater Integrated Report 201815AuPdNiIrCuRhCrPtRuSUMMARISED REPORT AND NOTICE OF ANNUAL GENERAL MEETING2019OUR MINING IMPROVES LIVESAuPdNiIrCuRhCrPtRuANNUAL FINANCIAL REPORT2019OUR MINING IMPROVES LIVESAuPdNiIrCuRhCrPtRuCOMPANY FINANCIAL STATEMENTS2019OUR MINING IMPROVES LIVES
DIRECTORS’ STATEMENT
OF 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 Group. Value
creation is an integrated, sophisticated 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, balance and completeness of the
information presented.
Having applied its collective mind and expertise, the Board
believes that the information presented in this report provides
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 22 April 2020 and
signed on its behalf by:
Dr Vincent Maphai
Chairman
Neal Froneman
CEO
Charl Keyter
CFO
Timothy Cumming
Remuneration Committee: Chairman
Harry Kenyon-Slaney
Safety and Health Committee: Chairman
Richard Menell
Risk Committee: Chairman
Keith Rayner
Audit Committee: Chairman
SETTING THE SCENE
About this report
Corporate profile
Our leadership
History – our value creation journey
3
4
6
9
How we performed – a summary 10
section
1
0
WHAT DRIVES US
section
Delivering on our strategy 13
Our external business and operating environment 17
Engaging with stakeholders 24
Pursuing opportunities and managing risk 31
How we create value – our business model 48
Key impacts and capital trade-offs 50
2
0
LEADERSHIP
section
Leadership point of view 57
Chief Financial Officer’s report 60
Social, Ethics and Sustainability Committee:
Chairman’s report 68
Corporate governance 70
Remuneration report 90
3
0
section
4
0
DELIVERING ON OUR STRATEGY AND OUTLOOK
Delivering value from our operations and projects 127
Empowering our workforce 138
Commitment towards safe production 164
Health and well-being and occupational hygiene 174
Social upliftment and community development 190
Minimising our environmental impact 202
Harnessing technology 226
Mineral resources and reserves – a summary 232
Four-year statistical review 246
S
T
N
E
T
N
O
C
Jerry Vilakazi
Social, Ethics and Sustainability Committee: Chairman
ANCILLARY INFORMATION
section
Shareholder information 258
5Statement of assurance 255
0
Forward-looking statements 260
Administrative and corporate information 261
We welcome your feedback
Your feedback, comments and suggestions help ensure that we cover the
issues that matter to you. Please direct your suggestions and comments to:
James Wellsted, Head of Investor Relations at:
ir@sibanyestillwater.com
www.sibanyestillwater.com
Sibanye-Stillwater Integrated Report 2019 1
SECTION
01
SETTING THE SCENE
A leading international
precious metals mining
company
3 About this report
4 Corporate profile
6 Our leadership
9 History – our value creation journey
10 How we performed – a summary
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
I
S
U
S
E
V
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
2
Sibanye-Stillwater Integrated Report 2019
ABOUT THIS REPORT
APPROACH AND PHILOSOPHY
This integrated report, our primary annual report, describes the
operational, financial and sustainable development performance
and activities of Sibanye Stillwater Limited (Sibanye-Stillwater,
before 24 February 2020 Sibanye Gold Limited) for the 12 months
from 1 January 2019 to 31 December 2019.
In this report, we provide insight into our strategy, management
of our risks and opportunities, our leadership and governance
structures, our business and performance, and on progress made
in delivering on our strategic objectives and in creating and
sharing value over the past year. We report on those matters,
which after considered review, we believe to have been most
material to Sibanye-Stillwater.
This integrated report complies with the International Integrated
Reporting Council’s (IIRC’s) Integrated Reporting Framework, the
King IV Report on Corporate Governance for South Africa, 2016
(King IV), the JSE listing requirements, and the South African
Companies Act 71 of 2008, as amended (Companies Act). Our
King IV disclosure report is available online.
As we do not produce a separate sustainable development report,
this integrated report is also aligned with the Global Reporting
Initiative (GRI) Standards, the content index for which is available
www.sibanyestillwater.com. All non-financial reporting
at
is either included in this integrated report or is available on the
website, where referenced. Similarly, we do not produce separate
governance and remuneration reports. Rather this information is
integrated into the content of this report.
Having recently completed the International Council on Mining
and Metals (ICMM) comprehensive audits throughout our
operations and been accepted as an ICMM member, every care
has been taken to ensure that this year’s report complies with
the ICMM’s principles. We have also taken into account the Ten
Principles of the United Nations Global Compact.
In addition, we produce a Form 20-F that is filed with the United
States Securities and Exchange Commission (SEC).
MATERIALITY
Material issues are those issues most material to the business and
stakeholders, and which fundamentally influence stakeholders’
assessments of and decisions about our business. We identify our
material issues through workshop analysis of our internal and
external environments, from information contained in our Board
reports, from stakeholder feedback and with the help of related
international guidelines, including GRI, King IV and the IIRC’s
Integrated Reporting Framework. Our material issues are reviewed
by management on an ongoing basis.
AUDIENCE
The principal audiences for this report are investors and
shareholders. However, we recognise that there are other
stakeholders who have varied and specific information
requirements which are addressed in this report. This report aims
to enable all 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.
DETAIL AND INCLUSIVITY
The comprehensive nature of this report reflects the Group’s aim
to provide sufficient, material information for the various users
of the report. It is also a function of the Group not producing a
separate sustainable development report, and 2019 reporting
including the newly-acquired Marikana operations (previously
Lonmin Plc).
SCOPE AND BOUNDARY
(see Corporate profile) implemented
The scope and boundary of this report considers the Group’s
organisational structure
to enhance and ensure delivery on our strategic operating
objectives. Annual comparative data is provided where applicable.
For the 2019 financial year, annual data is provided where
possible by region, type of operation and at Group level. Where
data for previous years has been restated, this is indicated.
Given the acquisition of Lonmin effective June 2019, renamed the
Marikana operations, data for these is for the seven months to
December 2019, unless otherwise stated.
Any material events occurring post year-end and before the date
of Board approval of this report are also mentioned.
Given that our operations in southern Africa account for 83%
of ounces produced, account for 97% of the workforce and the
majority of the material ESG related activities occur in SA (due
to the extent and nature of the operating environment in the
country), the major emphasis of this report is on our activities there.
ASSURANCE
Sibanye-Stillwater’s internal audit function monitors and provides
an objective assessment of internal controls, processes and systems
for financial, operating, compliance and risk management, and has
ensured the accuracy of the information presented.
Internal audit is a management function and is overseen by the
Chief Financial Officer and the Audit Committee and the Risk
Committee. These committees, in turn, report to the Board.
Independent external assurance provider, PwC, provided limited
assurance on selected sustainable development performance
indicators in accordance with the International Standards on
Assurance Engagements (ISAE) 3000 (revised) and International
Standard on Assurance Engagements (ISAE) 3410. PwC’s
Statement of Assurance can be found on
financial information in this report has been extracted or
derived from the annual financial statements which have been
independently audited by EY, who have not specifically audited
or reviewed this report.
page 255. The
Sibanye-Stillwater Integrated Report 2019 3
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE PROFILE
AMERICAS ASSETS
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
I
S
U
S
E
V
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
Sibanye-Stillwater’s diverse portfolio includes:
Various copper,
gold and PGM
exploration
properties in
North and
South America
Two PGM mining
operations and a PGM
recycling business and
metallurgical facility in
the United States,
and five PGM mining
operations in southern
Africa with associated
infrastructure, plant,
equipment and smelting
and refining capacity
Four gold
operations
and several gold
projects in South
Africa
Several PGM
projects in South
Africa
SALIENT FEATURES
Top tier gold
producer,
ranking third
globally, on a
gold-equivalent
basis
We also
produce iridium,
ruthenium,
chrome, copper
and nickel as
co-products and
by-products
World’s largest
primary
producer of
platinum and
rhodium, and the
second largest
producer of
palladium 3
Listed on the
Johannesburg
and New York
stock exchanges
IN 2019
Leading global
recycler and
processor
of spent PGM
catalytic converter
materials
PRODUCED
2.2Moz
of PGMs and 0.9Moz of gold
LEVERAGE REDUCED TO
1.25X
net debt adjusted: EBITDA 1
EMPLOYED
84,521
people
11 million
fatality free shifts 2
MARKET CAPITALISATION OF
R96 billion
(US$6.6 billion) 4 at 31 December 2019
1 The Group reports adjusted earnings before interest, taxes,
depreciation and amortisation (EBITDA) based on the formula included
in the facility agreements for compliance with the debt covenant
formula. For a reconciliation please refer to the consolidated financial
statements, note 26.9: capital management, available on
https://www.sibanyestillwater.com/news-investors/. The 1.25x
includes Marikana for 12 months as per the covenant definition
2 Achieved on 11 March 2020 at the SA gold operations
3 Statistics as per 2018 4 Exchange rate at US$/14.00
4
Sibanye-Stillwater Integrated Report 2019
S
N
O
I
T
A
R
E
P
O
R
U
O
F
O
N
O
I
T
A
C
O
L
East Boulder
(100%)
Reserves: 10.2Moz 2E
Stillwater
(100%)
Reserves: 16.7Moz 2E
Marathon project
(49%) with Generation
Mining
Denison project (80%)
with Wallbridge Mining
Altar project (100%)
with Aldebaran (in
Argentina)
US PGM OPERATIONS
Our Columbus Metallurgical Complex smelts material mined
to produce PGM-rich filter cake and recycles autocatalysts to
recover PGMs.
Reserves split
2019
Production split
(oz) H2 2019
Adjusted EBITDA (Rm)
H2 2019
22
17
38 %
40
%
52
31
15
33 %
52
SA gold (oz%)
SA PGMs (4E%)
US PGMs (2E%)
OUR ESG CREDENTIALS
The indices in which we are currently included:
FTSE/JSE
Responsible
Investment
Bloomberg
Gender-Equity
Index
SOUTHERN AFRICAN ASSETS
OUR PURPOSE, VISION AND STRATEGY
OUR PURPOSE
Our mining improves lives
OUR VISION
Superior value creation for all our stakeholders through
the responsible mining of our mineral resources
OUR STRATEGY
To deliver on our vision and purpose, we aim to
consolidate and strengthen our competitive position as
a leading international precious metals company
Our CARES values – commitment,
accountability, respect, enabling and
safety – are the foundation of all
that we do, the decisions we make
and how we conduct our business.
These values (the roots of our tree) support safe
operations, enable growth, underpin our business strategy,
promote competitiveness and success, and guide our
stakeholder engagement. Embedded in all that we do,
our values are continuously reinforced, by communication,
education and training.
Our vision is represented by the indigenous South African
umdoni tree, where the trunk of the tree (our workforce)
denotes the strength of the Group and the leaves on the
branches our stakeholders. The tree’s seeds and fruits
signify the value that our success will bring to stakeholders.
SA GOLD
Cooke surface (100%)
Reserves: 0.1Moz Au
Kloof (100%)
Reserves: 4.5Moz Au
Driefontein (100%)
Reserves: 2.6Moz Au
DRDGOLD (50.1%)
Reserves: 2.2Moz Au
(38.05%)*
Beatrix (100%)
Reserves: 1.5Moz Au
Various projects
Resources: 44.3Moz Au;
Reserves: 4.5Moz Au
SA PGM
Mimosa (50%)
Reserves: 1.7Moz 4E*
Marikana (95.25%)
Reserves: 9.2Moz 4E
Rustenburg (100%):
Reserves: 16.1Moz 4E
Kroondal (50%)
Reserves: 1.2Moz 4E*
Various projects
Resources: 86.8Moz 4E
* Attributable
SA PGM OPERATIONS
Our processing facilities include concentrators, and following the
Lonmin acquisition, a smelter complex together with base and
precious metals refineries.
We also have a 91.7% share in Platinum Mile, a retreatment
facility that processes tailings to recover residual PGMs
SA GOLD OPERATIONS
Our processing facilities include six metallurgical gold plants.
Post year-end, Sibanye-Stillwater increased its interest in
DRDGOLD Limited, a leader in the retreatment of gold
tailings, from 38.05% to 50.1%.
Membership
Better
lives
EMPLOYEES
Fair
market
access
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
Sibanye-Stillwater Integrated Report 2019 5
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
OUR LEADERSHIP
OUR BOARD
CHAIRMAN
1
DR VINCENT MAPHAI (68)
BA (Hons), BPhil (cum laude), MAPhil, PhD, Advanced Management
Programme, Finance Certificate
Appointed non-executive chairman of the Board on 1 June 2019
Chairman: Nominating and Governance Committee
Member:
• Remuneration Committee
• Safety and Health Committee
• Social, Ethics and Sustainability Committee
EXECUTIVE DIRECTORS
2
NEAL FRONEMAN (60), Chief Executive Officer
BSc Mech Eng (Ind Opt), BCompt, Pr Eng
Appointed 1 January 2013
Chairman: Executive Committee
Member:
• Risk Committee
• Safety and Health Committee
CHARL KEYTER (46), Chief Financial Officer
BCom, MBA, ACMA and CGMA
Appointed 9 November 2012
Member: Executive Committee
INDEPENDENT NON-EXECUTIVE DIRECTORS
TIMOTHY CUMMING (62)
BSc (Hons) (Engineering), BA (PPE), MA
4
Appointed 21 February 2013
Chairman: Remuneration Committee
Member:
• Audit Committee
• Risk Committee
• Social, Ethics and Sustainability Committee
SAVANNAH DANSON (51)
BA (Hons) Communication Science and Finance, MBA,
Strategic Planning and Finance
Appointed 23 May 2017
Member:
• Audit Committee
• Risk Committee
• Remuneration Committee
• Safety and Health Committee
HARRY KENYON-SLANEY (59)
BSc (Hons) (Geology), International Executive Programme
6
Appointed 16 January 2019
Chairman: Safety and Health Committee
Member:
• Risk Committee
• Social, Ethics and Sustainability Committee
• Remuneration Committee
3
5
6
Sibanye-Stillwater Integrated Report 2019
1
3
5
2
4
6
As at 31 December 2019, our 11-member
Board was led by an independent non-
executive chairman.
Post year-end*:
• Rick Menell was appointed lead
independent director
• Dr Elaine Dorward-King was appointed as
independent non-executive director on
27 March 2020
* Two non-independent non-executive directors were
appointed on 1 January 2020, representing Gold One
Group Limited, but resigned on 27 March 2020
Note: For full profiles of the directors, please go to
https://www.sibanyestillwater.com/about-us/leadership/
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE OUR BOARD CONTINUED
7
9
11
Detailed curriculum
vitae of Board members
are available on the
corporate website at
www.sibanyestillwater.com
18%
of Board members
are female*
45%
of Board members
are historically disadvantaged
persons (HDPs)*
* Information represented as at 31 December 2019.
Female representation will be higher in 2020 at 25%
as a female director was appointed on 27 March 2020
8
10
INDEPENDENT NON-EXECUTIVE DIRECTORS (continued)
RICHARD MENELL (64)
MA (Natural Sciences, Geology),
MSc (Mineral Exploration and Management)
Appointed 1 January 2013.
Chairman: Risk Committee
Member:
• Audit Committee
• Nominating and Governance Committee
• Safety and Health Committee
• Social, Ethics and Sustainability Committee
NKOSEMNTU NIKA (61)
BCom, BCompt (Hons), Advanced Management Programme,
CA (SA)
Appointed 21 February 2013.
Member:
• Audit Committee
• Nominating and Governance Committee
• Remuneration Committee
• Social, Ethics and Sustainability Committee
KEITH RAYNER (63)
BCom, CTA, CA (SA)
Appointed 1 January 2013.
Chairman: Audit Committee
Member:
• Remuneration Committee
• Risk Committee
• Social, Ethics and Sustainability Committee
SUSAN VAN DER MERWE (65)
BA
Appointed 21 February 2013.
Member:
• Audit Committee
• Nominating and Governance Committee
• Risk Committee
• Safety and Health Committee
JERRY VILAKAZI (59)
BA, MA, MBA
Appointed 1 January 2013.
Chairman: Social, Ethics and Sustainability Committee
Member:
• Nominating and Governance Committee
DR ELAINE DORWARD-KING (62)
BSc, PhD
Appointed 27 March 2020.
7
9
11
8
10
Sibanye-Stillwater Integrated Report 2019 7
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
OUR LEADERSHIP CONTINUED
EXECUTIVE MANAGEMENT
The executive committee (our prescribed
officers), meets regularly to discuss, plan
and make decisions on the strategic and
operating issues facing Sibanye-Stillwater.
As at 22 April 2020, the committee was
made up as follows:
3
7
4
8
1
5
9
2
6
10
1
4
7
NEAL FRONEMAN (60)
Chief Executive Officer
2
CHARL KEYTER (46)
Chief Financial Officer
3
ROBERT VAN NIEKERK (55)
EVP: SA PGM operations
CHRIS BATEMAN (56)
EVP: US PGM operations
5
SHADWICK BESSIT (57)
EVP: SA gold operations
6
HARTLEY DIKGALE (60)
EVP: Legal and compliance
DAWIE MOSTERT (50)
EVP: Organisational growth
8
THEMBA NKOSI (46)
EVP: Corporate affairs
9
WAYNE ROBINSON (57)
EVP: Group technical
EVP: Executive vice president
10
RICHARD STEWART (44)
EVP: Business development
Detailed curriculum vitae of members of executive management are available
https://www.sibanyestillwater.com/about-us/leadership/
on our website at
8
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE HISTORY – OUR VALUE CREATION JOURNEY
Since its initial establishment in 2013, Sibanye-Stillwater has diversified – geographically and by metal produced – from a single commodity,
South African gold mining company to become an internationally competitive, diversified precious metals producer of gold and the full
suite of PGMs.
Y
E
N
R
U
O
J
N
O
I
T
A
E
R
C
E
U
L
A
V
R
U
O
2013
2014-
2015
• Sibanye Gold Limited established when Gold Fields Limited unbundled
its South African gold assets – Kloof, Driefontein and Beatrix
• Listed on the Johannesburg and New York stock exchanges
• In August 2013, the Cooke operations were acquired from Gold One
• Wits Gold acquired, which included the Burnstone project and other
projects in the Free State province of South Africa
• Implemented our unique cost optimisation and operating model to:
– improve mining flexibility, quality of mining, reserves and mine life
– reduce debt/gearing
– deliver consistent, industry-leading returns
MARKET CAP*
R10 billion
(US$1.2 billion)
R21 billion
(US$1.3 billion)
• Initial entry into the PGM sector – acquired the following assets in SA:
2016
– Kroondal, Mimosa and Platinum Mile (April)
– Rustenburg operations (November)
R24 billion
(US$1.2 billion)
• In May 2017, acquired the Stillwater Mining Company and its assets in
2017
Montana, in the US
• Rebranded as Sibanye-Stillwater
R34 billion
(US$2.8 billion)
2018
• Acquired a 38.05% stake in DRDGOLD, a world leader in the
retreatment of gold tailings – entailed the vending of certain surface
gold tailings facilities and processing assets into that company
R23 billion
(US$1.6 billion)
2019
2020
Acquired:
• SFA Oxford, a leading metal market analytical consulting company and
globally recognised authority on PGMs (February)
• Full ownership of Lonmin’s assets – the Marikana operations, associated
processing and smelter plants, and the base and precious metals refineries
in South Africa
• Increased holding in DRDGOLD from 38.1% to 50.1% on 22 January
R96 billion
(US$6.6 billion)
• Completed an internal restructuring resulting in Sibanye Gold Limited becoming a subsidiary of the new holding
and listed company, Sibanye Stillwater Limited. Ticker codes on the JSE changed from SGL to SSW and the ADRs on
the NYSE changed from ticker SBGL to SBSW
• In March 2020, the impact of COVID-19 on global markets also impacted the Sibanye-Stillwater operations and
share price
* Source: IRESS, with numbers quoted at the end of each year except for 2013, which represents the market cap on the day of listing
Sibanye-Stillwater Integrated Report 2019 9
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
HOW WE PERFORMED – A SUMMARY
FINANCIAL
PERFORMANCE
ENVIRONMENTAL
FACTORS
SOCIAL
FACTORS
GOVERNANCE
FACTORS
44% increase in revenue to R73bn (US$5bn)
MINIMISING THE ENVIRONMENTAL IMPACT
Group Scope
1 and 2 carbon
emissions
declined
by 3.5% from
2018 to 2019*
‘A’ CDP score
achieved for
climate change,
one of only
179 companies
globally and the
only SA company
Zero Level 4
and above
environmental
incidents
22%
DECREASE IN
CONSUMPTION
OF PURCHASED
WATER*
* Excluding Marikana operations
See pages 202-225
D
E
M
R
O
F
R
E
P
E
W
W
O
H
R433m (US$30m) profit for 2019
(2018: loss of R2.5 bn/US$191m)
79% year-on-year increase in adjusted EBITDA to
record R15bn (US$1bn)
R6 billion revolving credit facility (RCF) refinanced
in October 2019 through new R5.5 billion RCF
See pages 60-67
DELIVERING VALUE FROM
OPERATIONS, PROJECTS
AND TECHNOLOGY
2.2Moz 4E and 2E PGMs mined production
(2018: 1.8Moz)
Gold produced: 0.9Moz (2018: 1.2Moz)
R50m (US$3.44m) spend on research and
development (2018: R19m/US$1.44m)
Optimising processes to ensure cost-efficient
operations
See pages 127-137
MINERAL RESOURCES
AND MINERAL
RESERVES – SUMMARY
84.2Moz 2E and 304.8 4E PGM
Mineral Resources (2018: 83.8Moz; 120.5)
98Moz Gold Mineral Resources (2018: 97.7Moz)
26.9Moz 2E and 28.1 4E PGM Mineral Reserves
(2018: 25.6 Moz; 20.4)
15.4Moz Gold Mineral Reserves (2018: 16.6Moz)
18,712Mlb Copper Mineral Resources (2018: 18,796Mlb)
78.7Mlb Uranium Mineral Resources (2018: 78.7Mlb)
See pages 232-244
Tailings storage facility at the SA PGM operations
10
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
ENVIRONMENTAL
FACTORS
SOCIAL
FACTORS
GOVERNANCE
FACTORS
S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
I
D
E
L
I
V
E
R
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
SUPERIOR VALUE FOR THE WORKFORCE
Workforce of
69,450 permanent
employees and
15,071 contractors
SA operations
invested
R744 million and
US operations,
US$333,000, in
HR training and
development
Launched the
culture growth
programme to
unite all on a
shared values-
based culture
See pages 138-163
ENSURING SAFE PRODUCTION
FIFR 0.04
(2018: 0.16)
LTIFR 5.23
(2018: 5.89)
SIFR 3.03
(2018: 3.70)
TRIFR 3.17
(2018: 2.69)
An ESG
sub-committee
of the Group
Executive
Committee was
appointed
Successful growth
of acquisitions;
R1.2 billion
of annualised
synergies by end
2020 from Marikana
integration
Sibanye-
Stillwater
gained
membership of
the ICMM 1 in
February 2020
BOARD CHARACTERISTICS
Ongoing focus on safe production resulted in a marked
improvement in safety performance – zero fatalities at the SA
gold operations
See pages 164-173
18%
82%
Independent non-
executive directors
Executive directors
OCCUPATIONAL HEALTH AND WELL-BEING
131 silicosis
cases reported
(2018: 165)
553 tuberculosis
cases reported
(2018: 539)
355 noise-
induced
hearing loss
cases reported
(2018: 243)
A health system based on the World Health Organization’s
guidelines
See pages 174-188
SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT
SA operations
spent R14.5 billion
(74% of total
discretionary
spend) with HDP 2
businesses
A socio-
economic impact
evaluation of the
US operations
showed positive
results; a parallel
study in SA is
underway
SA operations
invested
R1.6 billion in
socio-economic
development, while
US operations
spent US$398,567
on philanthropic
activities
See pages 190-201
1 International Council on Mining and Metals
2 Historically disadvantaged persons
Board and Exco visit DigiMine at Wits
GOVERNANCE AND RESPONSIBLE LEADERSHIP
• An automated
governance
framework
is being
developed
• Dr Vincent
• Sustaining an
Maphai joined
as the new
Chairman of
the Board
ethical culture:
two board
sub-committees
oversee
compliance of
ethical practices
Sibanye-Stillwater Integrated Report 2019 11
SECTION
02
WHAT DRIVES US
Superior value creation for
all our stakeholders through
the responsible mining of
our mineral resources
13 Delivering on our strategy
17 Our external business and operating environment
24 Engaging with stakeholders
31 Pursuing opportunities and managing risk
48 How we create value – our business model
50 Key impacts and capital trade-offs
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
S
U
S
E
V
I
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
12
Sibanye-Stillwater Integrated Report 2019
DELIVERING ON OUR STRATEGY
Our fundamental strategic goal is to ensure that we
consistently deliver on our purpose to
‘improve lives through our mining’ while strengthening our position as a leading
international precious metal mining company and ensuring we are true to our vision
‘to create superior value for all our stakeholders’.
Our strategic focus areas for 2019 were largely unchanged from the year before, with the
focus on the same five strategic focus areas as for 2018. These were further strengthened
by a sixth strategic focus area, embedding environmental, social and governance (ESG),
underpinning the way we do business and deliver on our overall strategy.
1
Building a
values-based
culture
6
Embedding
environmental, social
and governance (ESG)
excellence as the way
we do business
5
Pursuing
value-accretive
growth based on
a strengthened
equity rating
4
Addressing our
South African
discount
2
Ensuring safe
production and
operational
excellence
3
Deleveraging
our balance sheet
Sibanye-Stillwater Integrated Report 2019 13
Sibanye-Stillwater Integrated Report 2019 13
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION DELIVERING ON OUR STRATEGY CONTINUED
Strategic focus areas – rationale, delivery and intent
Contribution to our success
Strategic delivery 2019
Performance
rating
Strategic
focus area –
description
1. Building a
values-based
culture
2. Safe
production and
operational
excellence
• Instilling a values-based, ethical
organisational culture to provide
a solid foundation to enable
appropriate values-based decision
making and conduct of our
business
• Establishing our values as the
primary driver of our decisions
and actions creates our distinctive
identity as an organisation,
facilitating cohesion and unity of
purpose under the banner of ‘We
are one’
• A strong values-based culture
is the foundation on which a
high-performance organisation is
constructed
• Safe production and operational
excellence (improved efficiencies
and productivity) are essential
to the cost-effectiveness and
sustained viability of our business
• Maintaining continuous
improvement in safety while
maintaining a competitive position
on the global cost curves for the
commodities we mine, is the
engine room that delivers superior
operational and financial results on
a sustainable basis and drives our
business strategy
• Updated Group leadership
architecture delivering dedicated
focus on operating segment
strategies structured to optimise
value creation
• Programme launched to strengthen
future ready leadership capability
• Roadmap prepared for roll out of a
values-based organisational culture
• Inclusive process launched to define
behaviours that will be encouraged
or discouraged to support the
desired values-based culture
Future focus*
• Strengthen the future ready
leadership capability of the Group
in line with our values
• Advance the culture growth
programme to position our values
as central to our decisions and
behaviour
• Develop leadership capacity and
capability to set an example and
motivate
• Health and safety strategy
• Effectively execute Group safety
continuing to sustain overall
improvement with exceptional
performance from the SA gold
operations including a fatality free
year and 11 million fatality free
shifts on 11 March 2020
• SA gold operations restructured
for financial viability providing
2020 window to address non-value
adding costs for longer term
sustainability
• Ongoing steady production delivery
sustained from founding SA PGM
operations (Rustenburg and
Kroondal)
• Marikana (previously Lonmin)
integration substantially complete
with operations restructured for
financial sustainability
• Operational and technical
challenges that have affected the
safe production build up at the US
PGM operations being addressed
improvement plan in each
operating segment
• Maintain safe production
effectiveness improvements,
including digitalisation, at each
operating segment and SA
integrated services
• Configure SA gold operations
for safe delivery of profitability,
conducive to sustainable operations
from 2021 onwards
• SA PGM Marikana operations
delivering safe production and cost
effectively in line with expectations
of synergies arising from the
restructured district footprint
• Realise enhanced value through
optionality available in our SA PGM
processing, smelting and refining
assets
• Enhance safe production delivery
following establishment of SA
Integrated Services established for
cost effective delivery of services
• Safely deliver Blitz production ramp
up according to revised target at US
PGM operations
above target
in line with expectations
more work to be done
* Future focus areas may be impacted by the global impact of Coronavirus (COVID-19)
14
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Strategic focus areas – rationale, delivery and intent continued
Strategic
focus area –
description
3. Deleveraging
our balance
sheet
4. Addressing our
South African
discount
Contribution to our success
Strategic delivery 2019
Performance
rating
• Temporarily elevated leverage was
consciously assumed to secure a
high-quality international presence
in the PGM industry during a low
phase of the commodity price cycles
• A short-term focus on deleveraging
our balance sheet to a target level
of less than 1x net debt:adjusted
EBITDA was virtually concluded by
end of 2019
• While ongoing servicing and
reduction of debt remains a
priority, the focus is expected to
shift to apportioning cash flows
from operations to deliver value
to shareholders and support the
strategic growth and sustainability
of the business
• With a substantial South African
operating footprint and primary
listing on the JSE, concerns on
South Africa’s fiscal and political
stability and the factors that inhibit
business effectiveness, result in
a substantial risk discount being
assigned to our company
• Securing a more conducive policy
and regulatory environment
for effective business and safe
production operations represents
a critical imperative to enhance
global competitiveness of our
company and our country with
resultant social and economic
benefits for all stakeholders
• Elevated palladium and rhodium
prices with a constructive gold price
supported by improved production
delivery in H2 2019 enabled
deleveraging ahead of the expected
trajectory to 1.25x 1 by year end
from 2.5x the previous year
• Covenant ratios retained within
levels agreed with lenders
• Settlement of the US$169m Lonmin
prepayment arrangement in July 2019
resulting in a saving of approximately
US$15m (R210m) per year
• Marathon sale agreement with
Generation Mining Ltd concluded
with meaningful economic
participation retained in the
resource
• Concerted advocacy by organised
business launched in support of
decisive adoption of economic
policy to promote competitiveness
and growth starting to yield
constructive indications
• Increasing evidence of collective will
to address South Africa’s electricity
supply crisis and adopt responsible
fiscal policy
• Legal processes pursued successfully
to prevent imposition of irregular
value-destructive regulation
• Traction being secured on
collaborative social partnerships
in support of socio-economic
development of our host
communities
• Strategy defined to address critical
factors that affect our company’s
global investment and credit rating
above target
in line with expectations
more work to be done
* Future focus areas may be impacted by the global impact of Coronavirus (COVID-19)
1 Calculated based on the covenant definition whereby 12 months of Marikana has been included
Future focus*
• Given robust commodity prices and
a more stable operating outlook
at the start of 2020, accelerated
deleveraging was expected but
lockdown in SA due to COVID-19
will adversely impact expectations
• Target of US$1 billion gross debt
• Play a lead role in business
advocacy to influence government
towards adoption of policy,
regulation and state services that
promotes business confidence,
competitiveness and growth
• Social compacts or formalised
cooperative relationships in place
supported by trust building with
stakeholders in our major mining
districts
Sibanye-Stillwater Integrated Report 2019 15
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
DELIVERING ON OUR STRATEGY CONTINUED
Strategic focus areas – rationale, delivery and intent continued
Strategic
focus area –
description
Contribution to our success
Strategic delivery 2019
Performance
rating
Future focus*
5. Pursuing
• To sustain competitiveness in the
value-accretive
growth
based on
strengthened
equity rating
longer term in dynamic commodity
markets, continuing strategic
growth of the company is essential
to enhance the balance and quality
of our diversified geographic
and commodity footprint and to
maintain optimal relevance to the
evolving market requirements for
precious and industrial metals
6. Embedding
ESG excellence
in the way we
do business
ESG aspects of our performance
are becoming increasingly critical
in how companies are evaluated
by all stakeholders. Exemplary ESG
credentials are necessary to sustain
a licence to operate as well as to
maintain a strong investability
rating
• Finalised acquisition of Lonmin
and its integration into Sibanye-
Stillwater as the Marikana operation
– together with the transition of
the Rustenburg operation to toll
processing, this established our
mine-to-market PGM presence in
South Africa
• Leverage position sufficiently
robust to enable exercise of option
to increase stake in DRDGOLD to
50.1% through use of cash
• Ongoing work being performed on
market dynamics relating to battery
and technology metals
• Corporate structure rationalised
to create optionality for strategic
growth
• Supportive relationships sustained
with institutional lenders, investors
and offtakers among other
stakeholders, through confidence in
our ESG credentials
• Positive findings obtained through
assurance under responsible mining
codes and standards including the
ICMM principles and the World Gold
Council Responsible Gold Mining
Principles (RGMPs)
above target
in line with expectations
more work to be done
* Future focus areas may be impacted by the global impact of Coronavirus (COVID-19)
• Define strategy to grow our
international gold portfolio
• Crystallise a roadmap for entry
into those battery and technology
metals that are of highest strategic
relevance
• Effective delivery of the strategy for
ESG performance enhancement
• Meet the phased accreditation and
certification requirements of ICMM,
WGC and Together for sustainability
(TfS)
• Assurance of the SA gold
operations of the WGC’s RGMPs
• Effectively engage with
stakeholders around our ESG
strategy and performance
16
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
OUR EXTERNAL BUSINESS AND OPERATING ENVIRONMENT
Our ability to create value depends on how
well we navigate the strategic landscape in
which we conduct our business.
There are a broad range of factors – political, economic, social,
technological, legal and environmental that are frequently referred to
as the PESTLE framework – in our global, national and local external
environment that shape our strategy and influence our success. These
factors continually present new opportunities to grow the impact
of our business, while requiring us to adapt with agility in order to
remain relevant to stakeholder requirements. Our strategy is geared
to capitalise on opportunities that present themselves while managing
the strategic risks to our business.
In the following sections, we have isolated some of the main factors
that are relevant to our business and inform our strategy. We have
also linked the impact to specific opportunities and risks which are
disclosed on
pages 31 and 32.
GLOBAL MACRO-ECONOMY AND COMMODITY
MARKETS
The global economy and geo-political factors have a marked influence
on the supply and demand fundamentals of the commodities we
produce and consequently, their prices. While strong global economic
growth boosts automotive, industrial and jewellery demand for the
PGMs that we produce as consumer confidence increases, gold is
to some extent countercyclical finding favour as a safe haven asset
during periods of economic distress and geopolitical volatility.
Prospects for a slowdown in global economic growth in 2020
have increased due to various factors, including, most recently, the
COVID-19 pandemic. During March 2020, the Organisation for
Economic Co-operation and Development (OECD) projected that
global growth could decrease to 1.5% in 2020 due to the COVID-19
pandemic, with recent developments indicating that the effects on
global economic activity may be more substantial. Other factors
affecting this forecast included trade-related political tension between
the United States and China, increasing political tensions in the
Middle East and continuing uncertainty over the long-term impact of
Brexit, although it should be noted that several of these issues appear
to be approaching resolution.
As many countries continue to pursue interest rate tightening cycles,
the Federal Reserve in the United States cut interest rates three
times in 2019 to counter the effects of the trade war with China
and slowing domestic growth and, in March 2020, cut rates by
0.5% to counter the negative impact of COVID-19 on growth. This
increases the relative attractiveness of gold as a traditional safe haven
investment, which is a positive factor for the US dollar price of gold.
On 27 March 2020, Moody’s rating agency downgraded South
Africa’s rating from Baa3 to Ba1, with a negative outlook. Moody’s
cited the unprecedented deterioration in the global economic
outlook caused by the rapid spread of COVID-19, which is expected
to exacerbate South Africa’s economic and fiscal challenges and will
complicate the emergence of effective policy responses.
Impact (Related risk: 3; Related opportunities: 1 and 2)*
While slower economic growth implies a more subdued to
negative outlook for global automobile demand, an increase in
autocatalyst loadings is expected in order to meet tightening
global emissions regulations. This is projected to result in
continued demand for PGMs (refer to graphs below).
Tightening emission standards underpinning demand to offset reduced vehicle production*
Average PGM loadings per vehicle,
change in 2019 (%)
Expected increase in palladium loadings in 2019 due to
stricter emission regulations and introduction of real
driving emissions (RDE) despite engine downsizing
15-20%
5-10%
3-5%
China
India
Western
Europe
1-3%
USA
China palladium demand (koz)
China rhodium demand (koz)
1,200
800
400
0
(400)
150
100
50
0
(50)
2018
2019
2020E
2021E
2022E
2023E
2018
2019
2020E
2021E
2022E
2023E
Loss in demand (lower vehicle production)
Gain in demand (higher loadings)
Loss in demand (lower vehicle production)
Gain in demand (higher loadings)
Source: LMCA, IHS, Marklines, BASF Company data
Notes: Light duty vehicles (up to 6 tons)
Source: SFA Oxford
Source: SFA Oxford
* Before the impact of COVID-19
Sibanye-Stillwater Integrated Report 2019 17
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION OUR EXTERNAL BUSINESS AND OPERATING ENVIRONMENT CONTINUED
Group 3E PGM production
H2 2019
7
%
42
51
Platinum
Palladium
Rhodium
2019 platinum supply
US PGM operations
2019 palladium supply
US PGM operations
2019 platinum supply
US PGM operations
65
% 35
54
% 46
65
% 35
Primary supply (mined)
Secondary supply (recycled)
Primary supply (mined)
Secondary supply (recycled)
Primary supply (mined)
Secondary supply (recycled)
A platinum ingot produced at our Precious Metals Refinery in SA
Furthermore, a further deterioration in global growth and
demand for PGMs due to COVID-19 is likely to be offset by
supply disruption from SA, resulting from processing issues from
March 2020 at Anglo American Platinum and the subsequent
lockdown in SA. While substitution of palladium by platinum
could potentially assist in better matching the PGM demand
profile with production ratios, autocatalyst formulations must
meet a complex set of technical testing and certification
requirements, resulting in a relatively longer time to market.
BASF’s tri-metal catalyst, the development of which was co-
funded by Sibanye-Stillwater, will fulfil an important role in
managed substitution with initial impact expected from 2022
(for more information, refer to the joint media release issued on
2019 palladium supply
(https://www.sibanyestillwater.
10 March 2020 available on
US PGM operations
com/news-investors/news/news-releases/).
Overall, we are confident that, despite a slowdown in global
economic growth, demand fundamentals remain intact to
support robust pricing for the basket of commodities that we
mine, although an expected recovery in the platinum price may
be delayed. Palladium and rhodium are used almost exclusively in
autocatalysts for the purposes of emissions control. Their price is
therefore underpinned by robust demand.
% 46
54
Primary supply (mined)
Secondary supply (recycled)
Strategic response
Our diversified production profile with strong exposure to metals
in structural deficit and the countercyclical market fundamentals
for the basket of metals we produce provide stability that
is expected to mitigate the risks associated with a potential
slowdown in global economic growth. We remain cognisant
of the imperative to secure a healthy match between the PGM
supply and demand baskets to the extent that we are sponsoring
activities that aims at enabling partial substitution of palladium
by platinum in gasoline autocatalysts and supporting the work of
the Platinum Guild International (PGI) to restore the market for
platinum jewellery. We continue to be an active member of the
World Gold Council, supporting its initiatives where required.
Relative to its peers, Sibanye-Stillwater has a production prill
split (refer to graph on top right of the page) that best reflects
global demand. In addition, Sibanye-Stillwater is one of the
world’s leading recyclers of PGMs. Recycling plays an increasingly
important role in ESG.
Our understanding of the PGM fundamentals led to
transformational, apposite PGM acquisitions to establish a
sustainable mining company, with a unique commodity mix and
global geographic presence.
18
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE MARKET FUNDAMENTALS BY METAL*
Platinum – preparing for a recovery
• Despite a surplus in the platinum market in 2019, the platinum price was largely range bound between US$800/oz and US$900/oz.
The average platinum price for the year was US$869/oz versus US$884/oz in 2018, a year-on-year decline of 2%. Increased investment
demand in late 2019 and early 2020 saw the platinum price increasing to over US$1,000/oz, although the increasing risk of a global
economic slowdown has resulted in the price pulling back.
Demand
• Gross autocatalytic demand is well supported at 2.9Moz
• Demand was boosted by record ETF purchases (investment demand) which increased by around 1Moz in 2019
• Challenges being experienced in the Chinese jewellery market, the largest platinum jewellery market, with economic growth in China
forecast to continue to decline to lowest levels in many years
• Initial indications of a slowing in the decline of diesel vehicles sales in Europe
• Use of platinum in heavy duty diesel vehicles continues to rise on introduction of stricter emissions legislation
• The price differential between platinum for palladium is likely to incentivise substitution in autocatalysts in coming years
Supply
• In the absence of significant capital investment, supply from South Africa is likely to decline gradually. With limited growth expected
in primary and secondary supply, the surplus is likely to decline in coming years reaching balance and marginal deficits from
approximately 2023
• Longer-term, supply is forecast to decline by 1Moz by 2028, should no new production from significant projects/mines come on line, as
mature shafts in South Africa reach the end of their operating lives
Palladium – to remain in sustained deficit
• The average palladium price for 2019 was US$1,546/oz versus US$1,036/oz in 2018 – an increase of 49% year-on-year
• The price was driven by an ongoing fundamental market deficit. Market features include high lease rates, backwardation in the price of
palladium futures and lower-than-normal inventory stocks, all indicating a sustained shortage with the price expected to continue to be
well supported
Demand
• The market deficit is expected to continue until 2025
• Automotive demand in 2019 was boosted by relatively stable gasoline vehicle demand and higher autocat loadings. Declining auto sales
in China have been offset by the introduction of the more stringent China 6 standards for vehicle emissions
• A slowdown in global economic growth could dampen demand, but a sustained deficit will provide price support
Supply
• In the long term, it is likely that platinum will partially substitute palladium in autocatalysts, resulting in demand moderating and the
market deficit narrowing
• New primary supply, largely from Russia is long dated, building up from 2023 to 2027
• Increasing secondary supply is not sufficient to fill the deficit
* Before impact of COVID-19
Sibanye-Stillwater Integrated Report 2019 19
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION OUR EXTERNAL BUSINESS AND OPERATING ENVIRONMENT CONTINUED
MARKET FUNDAMENTALS BY METAL* CONTINUED
Rhodium – the most precious of them all
• The rhodium price has outperformed all commodities over the past 12 months – the average price for 2019 was US$3,709/oz, up 67%
from US$2,218/oz in 2018
• The elevated rhodium price has been a critical component of the increase in the rand PGM basket price, which has restored profitability
to the industry
Demand
• Gross automotive demand for rhodium expected to remain robust, boosted by more stringent nitrogen oxides (NOx) emission standards
in Europe and in China, resulting in a sharp increase in rhodium autocat loadings
• Consequently, the outlook for rhodium remains positive with demand forecast to increase to more than 1Moz in the next five years
• Technically more difficult to substitute rhodium with other PGMs, requiring significant loadings of palladium which is also in deficit
Supply
• Ongoing deficit forecast – primary supply pressure given chronic underinvestment in rhodium-rich deposits in favour of palladium-rich
deposits in South Africa (the northern limb) and in Russia
• Sibanye-Stillwater is the largest producer of rhodium in the world, with our PGM production basket having a relatively high rhodium
content relative to our peers
• Rhodium supply is forecast to decline at a faster rate than other metals due to lack of capital investment on rhodium rich (UG2) projects
Gold
• The average gold price for the year was US$1,393/oz, the highest since 2013, and close on 10% higher than the US$1,268/oz recorded
for 2018
Demand
• Supporting demand has been robust central bank demand, with Russia, Turkey and Kazakhstan being the largest purchasers. According
to the WGC, central banks purchased 374.2t of gold, 57% more year-on-year and the highest since 2014
• Financial market uncertainty, a low-interest rate environment in the global economy, and increased speculation will boost investment
demand
• This should more than compensate for declines in consumer demand for gold as a result of weaker economic growth and price volatility
• Structural reforms in India and China are expected to support long-term demand
• Increasing geo-political concerns will boost demand for gold as a safe-haven asset
Supply
• Mine production accounts for the largest part of gold supply – typically 75% each year. However, annual demand requires more
gold than is newly mined and the shortfall is made up from recycling. Recycling is the source of gold supply that is most immediately
responsive to the gold price and economic shocks. Most of the recycled gold – around 90% – comes from jewellery, with gold extracted
from technology providing the remaining 10%
• Total supply was slightly higher in 2019 – up 2% year on year to 4,776t. This growth was attributable to the price performance of gold over
the year, primarily through its impact on recycling, but also on net hedging to a certain extent. Mine production fell by 1% year on year to
3,464t the first year on year decline in output since 2008. A sharp increase in gold recycling to 1,304t, its highest level since 2012 (+11%
year on year), helped boost higher total supply. Modest net producer hedging – the first year of net hedging since 2016 – also contributed
to overall supply
• Gold mining and its associated activities do not respond to price changes quickly. There is usually a very long lead time between
exploring and finding new gold deposits and mines entering into production. As such, supply is not anticipated to increase in 2020
despite the improved price outlook
* Before impact of COVID-19
20
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE ESG – AN INCREASINGLY CRITICAL STAKEHOLDER
IMPERATIVE
Related risks 2, 4, 5 and 10; related opportunity: 5
Sustaining our licence to operate is increasingly dependent on meeting
stakeholder expectations for responsible operations that is typically
captured in an environmental, social and governance (ESG) framework.
Increasing pressure is being experienced from investors, lenders, the
commodity markets, governments, and social and environmental
activist groupings to meet expected standards. This has progressed
to the extent that, in August 2019, a declaration was issued by the
Business Round Table (an association of CEOs of nearly 200 of top
companies in the United States) which affirmed that recognising the
expectations of all stakeholders now outweighs shareholder primacy
as a business ethos. It is being increasingly recognised that sustainable
delivery of strong financial returns to shareholders is dependent on
companies securing legitimacy through meeting the expectations of
all stakeholders and aligns with Sibanye-Stillwater’s intended business
ethos as expressed through our Umdoni Tree
(refer to page 5).
This approach echoes the undeniable increase in the strategic
relevance of appropriate ESG for the sustainability of most global
industries. While institutional investors and lenders have thus far
predominantly practised responsible investment on an exclusionary
basis whereby companies with poor ESG become ineligible for
investment, ESG rankings are starting to emerge that evaluate a
company’s ESG standing. Although ESG ranking systems remain
disparate, they are starting to attract increasing attention as the basis
for responsible investment and are expected to normalise to reflect
dominant stakeholder priorities over time.
To the mining industry, the concepts of sustainable development
and responsible mining are not new, partly due to heightened
consciousness about the impacts of mining on the environment and
society around mining operations – impacts which may occur while
recognising the benefits that accrue from stimulating economic growth
in host communities and supplying the world with minerals that are
instrumental for the global economy and human well-being. Several
codes for responsible mining are in routine use and are continuously
developed to manage the impact of mining on stakeholders in societies
where mining takes place. Accreditation under these responsible mining
codes provides an excellent foundation for meeting the broader ESG
expectations that are a business imperative.
There is no doubt that ESG represents an increasingly critical
stakeholder imperative in the global mining industry and for business
generally, and will shape the way we operate over the foreseeable
future. For that reason, ESG has been incorporated as the sixth, and
central strategic focus area across the Group and we will aim to meet
the ESG performance standards expected by our stakeholders.
SOUTH AFRICAN SOCIO-POLITICAL CONTEXT
The fragile socio-economic outlook and troubled political environment
for South Africa, has consistently been recognised and flagged as a
persistent risk for our company due to the significant operational and
financial footprint of the South African operations. South Africa is
unlikely to be immune to global economic trends and is structurally
vulnerable due to unsustainable national debt levels resulting in a
deepening fiscal crisis, the continued deferral of necessary investment
linked to ongoing policy uncertainty, a trust deficit fuelled by increasing
evidence of widespread corruption, and unsustainable state-owned
enterprises
(Eskom in particular – refer to pages 22 and 23). The
credit ratings downgrade by Moody’s, on 27 March 2020, to below
investment grade is likely to result in significant capital outflows and
further currency weakness to the extent that it is not already priced in.
While our SA operations will most likely benefit from a weaker rand in
the near term, over the longer term, a less favourable operating climate
and related cost inflation will erode margins.
South Africa has been ranked poorly as an attractive mining
investment destination for many years, with decisive and clear policy
a clear prerequisite for capital investment. Furthermore, a focus on
competitiveness and regulatory certainty is essential to make South
Africa an attractive destination for investment. The government’s stated
commitment to rooting out corruption, and the transparent way in
which various commissions of inquiry have progressed, represent positive
developments. While positive developments in key areas of mining policy
such as the Mining Charter, and the regulations pertaining to financial
provisions for rehabilitation and the housing and living standards are
welcome, areas of dispute remain inhibiting the confidence required to
promote investment in sustainability and growth.
The economic outlook for South Africa is poor and continues to
deteriorate. GDP is currently forecast to grow at less than 1% per
annum by the IMF and the Moody’s ratings agency in 2020. The
COVID-19 pandemic and the response in the form of a lockdown for
more than 20 days will inevitably further reduce these projects. This
is insufficient to address the current debt burden and socio-economic
concerns resulting from elevated and rising unemployment levels,
especially among the youth. Poor service delivery, corruption and the
failure of state-owned enterprises mean that societal expectations
are increasingly unmet, with social protest and unrest increasing and
causing significant disruption. The poor track record of the government
in service delivery results in ever more strident calls for business to
contribute beyond reasonable capability towards civic infrastructure
and promotion of local economic growth through procurement and
local employment. As a result, relations with communities are strained
with regular protest action disrupting operations. The social context
also provides fertile ground for syndicates engaged in illegal mining and
other forms of criminal activity to thrive, in some instances aided by
employees of the company who are in collusion.
Impact (related risk: 2; related opportunities 3 and 4)
Social disruption combined with escalating lawlessness and criminal
activity are an ongoing threat for our operations in South Africa
and contribute to an increasing cost burden. The proximity of local
communities to our operations in South Africa, particularly our SA
PGM operations, is an additional complexity. Operational disruption
resulting from social instability may affect the sustainability of our
operations and in extreme instances may lead to premature cessation
of mining operations, negatively impacting regional economies due
to consequent job losses and supplier businesses closing.
In SA, the impact of the initial 21-day lockdown and its subsequent
extension due to COVID-19 will adversely affect the SA operations
and their stakeholders.
Uncertainty with respect to the potential that onerous regulation
will be introduced in the minerals sector coupled with indecisiveness
around the policy interventions required to stimulate economic
growth and avert the looming national fiscal crisis continues to
erode investor sentiment. Although a weaker rand may be positive
for rand commodity prices in the shorter term, it will inevitably
result in higher input cost escalation ultimately compromising the
sustainability of our more marginal operations.
Sibanye-Stillwater Integrated Report 2019 21
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION OUR EXTERNAL BUSINESS AND OPERATING ENVIRONMENT CONTINUED
Strategic response
The acquisition of the Stillwater operations in early 2017 was
well timed, with the inherent value proposition significantly
enhanced by the 170% increase in the 2E PGM basket price
from the date of the transaction announcement in December
2016 to end December 2019. In addition to the obvious value
rationale, the acquisition of Stillwater offered clear strategic
benefits – commodity and geographic diversification.
In South Africa, a concerted effort has been made to establish
credible relationships and address community concerns through
Community Engagement Forums that include legitimate
representatives of the communities surrounding our mining
operations (see Engaging with stakeholders and Social upliftment
and community development). We see these as critical forums
in which the contribution of our operations to the strategic
development plan for the district will be understood and
appreciated. We intend to work with stakeholders to normalise
roles in support of establishing viable and sustainable post-
mining economies in our host communities both during and after
the phase of active mining.
We remain committed to engage constructively with the South
African government and regulators in respect of shaping an
enabling climate for inclusive growth. Through the Minerals
Council, we engage regularly with government on the
strategic direction for minerals policy, with intent to structure a
meaningful compact founded on shared purpose and enhanced
trust, and supported by a credible regulatory framework. These
interactions extend to consideration of the support required
from government and state owned enterprises around provision
of key national services, most importantly electricity supply (see
below), security and policing and water, that are essential for a
competitive mining industry. We have also initiated engagement
with the government jointly along with other organised business
associations around the economic policy interventions that are
required to resolve the issues of competitiveness and growth in
the South African economy.
SOUTH AFRICA’S ELECTRICITY SUPPLY – INSECURE
AND COSTLY
South Africa’s electricity supply, provided in the main by the State-
owned enterprise, Eskom, is increasingly falling short of providing
the affordable and reliable electricity required to promote the
competitiveness of industry and stimulate economic growth. Ageing
power plants combined with a substantial maintenance backlog are
resulting in a low equipment availability factor and the need to make
extended use of high cost generating plant to attempt to service
national electricity demand. These measures exacerbate the tarrif cost
escalation and episodes of load curtailment continue to compromise
the continuity of our operations. Under-recovery of operating costs
combined with capital overruns and delays at the newly-built Medupi
and Kusile power stations are further compromising Eskom’s solvency
with the increasing debt levels representing a major overhang on
South Africa’s national debt and credit ratings.
22
Sibanye-Stillwater Integrated Report 2019
Eskom is cause for deep concern both in terms of its capacity to generate
power, and financially, owing to the unaffordability of above inflation
tariff increases that lead to an ever-rising debt burden. Dependency on
a sole third party-power supply and related infrastructure elevates the
risk created for our business. This together with the rising cost of power
poses serious challenges to the country. Furthermore, the magnitude of
Eskom’s debt has had a negative impact on South Africa’s investment
ratings and threatens the economy as a whole.
Several interim measures to secure relief in addressing the electricity
generation crisis are being contemplated by government. These
include accelerated procurement of supplementary generation
capacity, that may assist in terms of assuring sufficient generating
capacity although it is likely this can only be implemented at
significant cost. While the more sustainable approach has been
mooted by government that includes reform of the electricity supply
industry commencing with the unbundling of Eskom into separate
generation, transmission and distribution divisions, this is recognised
as a protracted initiative that, while being accelerated, can only be
expected to yield improvements in the reliability and affordability of
electricity supply in the longer term.
Impact (related risks: 6 and 10; related opportunities:
4 and 7)
Escalation in electricity tariffs at above inflation rates substantially
elevates our operating cost structures, particularly at our energy-
intensive SA gold operations where electricity now represents
more than 20% of our operating costs. The operational
disruptions arising from load curtailment that may occur at
relatively short notice also have a substantial disruptive impact
on production. While effective controls are in place to assure the
safety of our employees, which is our foremost priority, the impact
on the competitiveness of our operations is substantial, creating
a real risk that the lives of the more marginal operations could be
foreshortened.
Strategic response
The safety of our employees is of paramount concern and we have
established clear protocols and implemented measures to ensure
employee safety in the event that there is a national power supply
failure, and together with Eskom agreed on specific protocols to
mitigate the impact of load curtailment at our operations. The
availability of emergency generators at our mines caters for the
risk of unplanned localised power disruptions that are mostly
unrelated to pre-warned load curtailment. The protocols agreed
with Eskom enable our operations to reduce demand as required
through specific, agreed measures to assure the stability of the
national grid while minimising disruption to our operations. Typical
measures include switching off non-critical electrical loads and
rescheduling these activities to periods when national electricity
demand is lower. Unless load curtailment extends to severe phases
or for a protracted duration, load curtailment requirements can
be met substantially through management of electrical loads that
can be scheduled limiting the impact on operations and ensuring
employees safety by retaining the ability to continue ventilating
workings and hoisting employees to surface.
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Our mature, deep level underground mining operations are
inherently energy intensive, due to the cooling, pumping and
equipment powering requirements necessary to provide an
enabling and safe working environment for employees and
to support ongoing production. We continue to implement a
programme of continuous improvement to reduce our electricity
consumption in order to offset tariff increases albeit partially
thus far, and at the same time reduce the carbon footprint of
our operations. To secure further clean and affordable power,
we have confirmed the feasibility and concluded the design of a
150MW solar photovoltaic generating plant located between our
Driefontein and Kloof operations, although implementation is on
hold pending securement of certain regulatory approvals on terms
that do not inhibit the commercial attractiveness of the project.
In terms of electricity pricing, we continue to engage with the
regulators on the impact of onerous above inflation tariffs
increases on the financial sustainability of our business. Since the
framework for determining allowed tariffs provides for recovery
of costs prudently incurred by Eskom, we advocate reform of the
electricity supply industry to secure the levels of competitiveness
that can deliver affordable and reliable electricity that will serve as
a catalyst for economic stability and growth.
CLIMATE CHANGE
Climate change is increasingly being recognised as one of the most
profound issues affecting our planet. A critical factor in addressing
climate change is the management and reduction of carbon emissions
from our operations, which are relatively carbon intensive due to
the dominance of coal-fired electricity generation in South Africa.
While this represents an important contribution, the global response
to climate change extends to strategic considerations regarding
future technological developments and the potential impact on
the market fundamentals for the commodities that we produce.
Increasingly stringent limits on automotive emissions per kilometre
travelled are prompting ever more exacting design specifications
for internal combustion engines and are already beginning to
stimulate a technological evolution in automotive powertrains. This
will be complemented in the longer term by a steady trend towards
renewable energy generation supported by various forms of energy
storage including batteries and hydrogen in the quest to achieve net
zero carbon emissions by 2050. While autocatalysts with increasing
PGM loadings will remain relevant over the foreseeable future, newly
introduced powertrain technologies are expected to start creating
new applications for PGMs, including fuel cells, that take advantage
of their unique properties.
We are also cognisant that climate change is impacting on
environmental conditions at our operating sites to an increasingly
greater extent due to change in weather patterns. Water scarcity
may have a more substantial effect on our South African operations
while extreme weather and more intense winter storms may be
experienced at our United States operations. The expected changes
in environmental conditions also factor in to post closure planning to
establish economic activities that will ultimately substitute mining in
our local economies. This is particularly critical for agriculture that is
a natural successor to mining capitalising on the use of available land
and resources.
Impact (related risk: 1 and 3; related opportunities:
1 and 7)
The most significant impact of climate change is on the markets
we serve through the supply of commodities from our operations.
As the world’s energy and transportation systems evolve at
an unprecedented pace to support a credible climate change
response in line with developing regulation, the application
of minerals will evolve creating substantial new demand
opportunities as well as in some instances threats to demand.
The escalating urgency to reduce global carbon emissions, with
the European Union aiming for a net zero emissions target by
2050, imposes the imperative of intensifying our work to reduce
the emissions of carbon and other contributors to global warming
related to our operations.
The most visible consequences of climate change that may affect
the environment we operate in are changes in local weather
patterns with increasing occurrence of extreme weather, including
drought, floods and storms. This may exacerbate water scarcity,
especially at our SA PGM operations, with extreme winter storm
conditions potentially affecting our Montana operations to a
greater extent.
Strategic response
While we are confident that PGMs will continue to occupy a
significant position, albeit through different applications of their
unique properties in the longer term, our strategic intelligence
extends to other minerals that are expected to be instrumental in
future technologies. We will continue to position our business as a
supplier of minerals that are critical to support the global challenge
of mitigating climate change. This will include a continuing focus
on our recycling operations to enable production of minerals with
a lower carbon footprint.
Our mature South African mines are by nature energy intensive and
without any reasonable alternatives, are dependent on carbon-
intensive power from Eskom. Implementation of South Africa’s
integrated resource plan for electricity generation should reduce the
carbon intensity of national electricity supply from Eskom as more
efficient coal-fired generating plant replaces older facilities with a
steady transition to renewable energy generation. Development of a
150MW solar photovoltaic plant for private generation that is already
at an advanced stage of permitting will make a further contribution
in reducing the carbon intensity of the electricity that we consume.
We have also implemented initiatives to limit and mitigate our
environmental impacts with targets set for reduced emissions of CO2
and SO2 (see Minimising our environmental impact).
To prepare our operations for the impact of climate change on the
operating environment, we have an active programme to reduce
water consumption that will allow us to continue operating in a
more water scarce environment. Consideration is being given to
a broader water management strategy across our South African
operations that would enable water deficits to be offset by water
surpluses in other districts. We are also taking into account the
implications of potential variations in environmental conditions for
post-closure economic activity in the areas where we operate.
Sibanye-Stillwater Integrated Report 2019 23
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION ENGAGING WITH STAKEHOLDERS
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
CHALLENGES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
Clarification of the respective
roles of the SA labour unions
and the Group, and of the
Group’s right to manage its
operations
Complexity of integrating the
Marikana operations into the
Group
The Good Neighbor
Agreement at our US PGM
operations is unparalleled
Continuously balancing
the expectations of all
stakeholders
Addressing the need to
grow the local economy
by providing procurement
opportunities in the supply of
goods and services
APPROACH
Open and constructive stakeholder relations
are critical to the success and long-term
sustainability of our business. Ultimately,
our social licence to operate depends on the
quality of our stakeholder relationships.
IDENTIFYING STAKEHOLDERS AND BUILDING CONSTRUCTIVE
RELATIONSHIPS
Stakeholders are those who are interested and affected parties to our
business and its activities and are integral to our business. They include
those who have the potential to materially influence our ability to create
value and deliver on our strategy.
Our CARES values guide our approach to
stakeholder engagement. To be effective and
productive, it is important that engagement
is a two-way process, based on trust, mutual
respect and transparency. In our engagement, we
consider the concerns and views of stakeholders
so as to better understand their expectations,
permitting us to provide considered, timely and
professional responses.
This engagement enables informed decision
making, by balancing stakeholders’ interests,
needs and expectations with the Group’s ability
to operate on a financially sustainable basis, and
focus on securing effective alignment through
shared purpose. Our approach to engagement is
structured but flexible, enabling us to deal with
requests for engagement by interest groups and
stakeholders who either elect to or fall outside of
the broader representative structures..
The stakeholders with whom we engage and have partnerships include
employees, unions, communities in host and labour-sending areas, various
levels of government (national, state, provincial, local and municipal),
customers, investors, non-governmental organisations (NGOs), suppliers,
business and joint venture partners, and the media, among others.
A Stakeholder Perception Index, intended to measure and monitor
stakeholder perceptions and the quality of relationships, in line with King IV
and our approach to shared value was concluded at our SA gold operations
in 2018. The index was tested among community leaders and local
government in host communities around our gold operations in the West
Rand and the Free State. The results have been used to establish a baseline
for the review of our stakeholder engagement processes at our SA gold
operations and to ensure that they serve the interests of the organisation
and stakeholders. Biennial studies will review the status and the strength of
our stakeholder relationships against this baseline. The next review will be
conducted later in 2020.
This section should be read in conjunction with that on Social upliftment
and community development.
24
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Status of key stakeholder relationships – 2019
Stakeholder, nature of relationship
and link to material risk
Form and frequency of
engagement
• All five community
COMMUNITIES
In South Africa: Cordial
Understanding the needs of our
communities and the challenges
they face is key in enabling us to
deliver on our purpose, ensuring
that our mining improves lives.
Although interactions and
relationships are generally
cordial, they are dynamic and
depend on the socio-economic
and political context that drives
issues in local communities.
engagement forums meet
quarterly, or as required
• Community complaints
hotline
• Workshops
• Open days
• Written communication
(reports and letters)
Material topics for engagement
• Perceived lack of engagement by
Sibanye-Stillwater and a failure to
respond to community grievances
• Specifically, misperceptions relate
to procurement, recruitment,
environmental issues, care and
maintenance, and socio-economic
development programmes
Our strategy to enhance the quality of our relationship
• We are working to establish and maintain open and reliable
channels of communication
• An issues resolution framework has been created, aimed at
ensuring communities are easily able to contact Sibanye-
Stillwater and report their concerns and that these concerns
are resolved speedily. The framework includes a complaints
procedure, a hotline, a complaints register to capture every issue
or complaint received, and to record its resolution (within a
stipulated turnaround time) and feedback provided.
• Employment, enterprise and
• Engagement on local employment and procurement is a
procurement opportunities (access
to business opportunities)
• Life after mining – community
development, including education
and skills development
• Illegal mining and its effects on
employee health and safety
priority. Engagement covered explanations of medical fitness
requirements, among others, for successful job applications
• In line with our enterprise and supplier development strategy, we
conducted the following in 2019:
– In support of our inclusive procurement strategy, we have
introduced Coupa a procurement tool to improve the supplier
registration process and sourcing with our local suppliers.
Our tenders are also being advertised on our website to share
the opportunities
– There is also additional support provided by enterprise
development centres in Welkom, Westonaria, Carletonville and
Rustenburg. We also have two satellite centers in Theunissen
and Mooinooi
• Social closure framework and socio-economic programme plans
were finalised in 2019 and planning for the related stakeholder
engagement began. This framework and the related plans go
beyond mining
• In developing these plans, we will collaborate and strategise with
municipalities, district and local, to identify economic activities
that will endure post-mining. The plans, which align with regional
Integrated Development Plans (IDPs), will be driven and owned
by the municipalities
• The community development projects detailed in our SLPs,
together with education and skills development, are agreed
in consultation with communities and local and district
municipalities. These projects aim to reduce communities’
dependency on mining operations and to create alternative
sustainable economic activity
• Regular engagement with government and community leaders
addresses the impact of illegal mining. In addition, we have
conducted extensive awareness campaigns internally. For more
on our efforts to combat illegal mining,
see the fact sheet:
Combatting illegal mining at the SA operations
• Land required for housing and
alternative, sustainable economic
activities
• Land has been donated for agricultural and other purposes. We
are also in discussions with several municipalities on possible
land donations
• Marikana community issues
• A committee has been set up to identify and manage issues
reported by the Marikana community. Given the complexity
of issues and sensitivities, continued, respectful and honest
engagement will be critical
Marikana)
(see Stakeholder engagement at
Sibanye-Stillwater Integrated Report 2019 25
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION ENGAGING WITH STAKEHOLDERS CONTINUED
Status of key stakeholder relationships – 2019
Stakeholder, nature of relationship
and link to material risk
COMMUNITIES continued
In the United States:
Constructive
Form and frequency of
engagement
• Good Neighbor Agreement
community organisations
Material topics for engagement
• Independent water monitoring
Our strategy to enhance the quality of our relationship
• We are amending our Good Neighbor Agreement with the
and assurance plan
• Proposed expansion of future
waste rock and tailings storage
capacity at Stillwater and East
Boulder
addition of an Adaptive Management Plan, which will trigger
Company actions in response to water quality metrics that
are more stringent than required by state and federal law.
Mitigation activities will be triggered even when levels of water
contaminants are well below state and federal trigger limits. It
provides a proactive method for catching potentially impacted
areas much earlier than under state and federal law
• All related planning, design and permitting is being undertaken
in collaboration with concerned stakeholders and our Good
Neighbor partners
At our US PGM operations,
community engagement
is governed by the Good
Neighbor Agreement (GNA),
which provides an innovative
framework for the protection
of the natural environment
and social co-existence while
encouraging responsible
economic development.
Related risk: 2
Related strategic focus area: 6
For further detail on community
engagement and community-
related activities,
upliftment and community
development.
see Social
EMPLOYEES
Constructive/Cordial
Constructive engagement with
employees ensures their buy-in
to our purpose and values, and
that they are motivated and
committed to delivering on our
operational plans and strategy.
Related risks: 2, 4, 5
Related strategic focus areas: 1, 6
For more employee related
information,
Empowering our workforce
see
26
Sibanye-Stillwater Integrated Report 2019
• Face to face engagement/
meetings
• Company briefs
• Text messages
• Podcasts
Group-wide:
• Creating a values-based
organisational culture
In South Africa:
• Strike at gold operations
• Wage negotiations at SA PGM
operations
• A concerted effort at relationship
building with employees at
Marikana
In addition:
• Regular communication to explain
business plan, key decisions,
policies and procedures across
the Group
• Ongoing communication and
events around the importance of
safety in the workplace and safe
behaviour
Group-wide:
• The Group-wide cultural growth programme was launched in
November 2019. Its aim is to unite and align all people across all
operations and continents, our behaviours and actions behind a
shared, inclusive values-based culture. Such a culture will enable
us to better deliver on our purpose to improve lives
In South Africa:
• Extensive work was undertaken to rebuild relationships and
team spirit at the gold operations after the five-month strike.
Communication became more proactive, regular and open
focusing on safety, production and our people, with our values
as the common thread throughout. The number of senior
management visits to the operations increased, mass meetings
became regular events rather than ad hoc, and feedback
platforms were established. Our safety hotline became a feedback
mechanism for issues other than just safety
• Briefing sessions and several engagements on various aspects
of the Sibanye-Stillwater Group were held with the Marikana
employees after the acquisition became effective in June 2019
In the United States:
• Employee engagement survey
In the United States:
• An employee engagement survey was conducted in 2019. Each
• Employee appreciation days
leader will receive feedback on their area of responsibility to help
them assess what can be done better, what should be stopped
or continued. Leadership analysed survey results and held
collaborative sessions with a broad range of employee groups
• All employees and their families or guests were invited to
an open day at each of the three operating sites in August/
September. Employees were able to take their families to our
underground and surface operations. This event fostered great
employee pride and better understanding of employee work
environments for family and friends
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Status of key stakeholder relationships – 2019 continued
Stakeholder, nature of relationship
and link to material risk
ORGANISED LABOUR
(UNIONS)
In South Africa: Cordial
Unions are recognised as primary
stakeholders and our partnership
with them is critical to sustained
operations.
The National Union of
Mineworkers (NUM), the
Association of Mineworkers and
Construction Union (AMCU),
Solidarity and UASA
Form and frequency of
engagement
• Formal meetings take place
in terms of an agreed diary
• National Leadership Forum
and regional meetings
occur quarterly
• Monthly shaft and plant
meetings with the local
union branch are held
• Quarterly social and labour
plan forum; future forum
• Safety summits
In the United States:
Constructive
The US PGM union - United
Steelworkers (USW) are a key
part of the success to our
business, safe production and all
stakeholders.
Company and labour have a
strong partnership at all three
Montana operations sites
Related risks: 2, 4, 5
Related strategic focus areas: 1, 6
For more employee related
information,
Empowering our workforce
see
INVESTORS AND CAPITAL
PROVIDERS
Constructive
Related risks: 1, 3, 4, 6, 7, 8,10
Related strategic focus areas:
2, 3, 4, 5
• Monthly Union and
Company (MUC) meetings
are held with the union and
company representatives to
discuss business updates,
issues, concerns and other
items key to maintaining
open communications with
the union. These are held at
all three sites
• Monthly Joint Safety and
Health meetings (JHSC)
are held with union safety
representatives and
company representatives
to discuss safety updates,
strategy, concerns and
incidents. These are held at
all three sites
• Investor meetings – one-on-
one and group
• Telephone and conference
calls
• Conferences
• Formal, regular reporting
• Company and regulatory
announcements
Material topics for engagement
• Strike at gold operations
Our strategy to enhance the quality of our relationship
• Intensive negotiations involving open and robust engagement
were held with all unions and in particular with AMCU early in
2019. These negotiations aimed at bringing to an end the strike at
our gold operations and to resume normalised operations
• Following the strike, engagement aimed to restore cordial
employee relations and trust at the gold operations
• SLP Forum (unions reps and management) has been provided
with capacity building on legal requirements pertaining to
SLP and Mining Charter 2018, including associated risks on
contraventions
• Wage negotiations for the
• Three-year wage agreements were concluded following
constructive negotiations. The wage agreements, signed with the
representative unions – AMCU at Marikana and AMCU and UASA
at Rustenburg – cover the period to 30 June 2022
• Ongoing financial losses at Marikana combined with certain
shafts having reached the end of their economic reserve lives
resulted in the closure of three shafts. Following consultations
with affected stakeholders, a number of jobs were secured with
1,142 full-time employees ultimately retrenched and contractor
numbers reduced by 1,709
• The latest five-year wage contract was negotiated in a short
six-day window in April 2019. We have an agreement through to
31 May 2024
• A wage reopener was negotiated at East Boulder in December of
2017 and an extension of four years to the labour contract was
agreed to until 1 January 2022
• Continual training and education of top management through
front line supervision as to US labour laws and proper action and
response are ongoing at the Montana US operations
Rustenburg and Marikana PGM
operations
• Section 189A consultations
on restructuring and potential
retrenchment and loss of
5,270 jobs at Marikana. The
six-month moratorium on forced
retrenchments imposed by the
Competition Commission Appeal
Court lapsed on 7 December 2019
• Wage negotiations for Stillwater
and the Columbus Metallurgical
Complex
• Wage reopener at the East
Boulder in December 2017
• Other less critical risks include a
National Labor Relations (NLR)
Board charge, which could occur
if representatives of the company
violate a NLR federal law or act
on certain activities without
informing the union
• informing the union
• Investors received regular updates relating to the now resolved
gold strike and wage negotiations at the time. All other material
matters were also communicated, over and above results updates
• Deleveraging of the Group’s
balance sheet during 2019
• Safety and ESG performance
• Policy and political uncertainty in SA
• Resolving the gold strike and
settling wage agreements for
both SA gold and SA PGM
operations (Rustenburg and
Marikana during 2019)
• Views on sustainability of the
higher palladium and rhodium
prices – compared to our view on
PGM market fundamentals
• Understanding the dividend
policy and view on any future
acquisitions
Sibanye-Stillwater Integrated Report 2019 27
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION ENGAGING WITH STAKEHOLDERS CONTINUED
Status of key stakeholder relationships – 2019 continued
Stakeholder, nature of relationship
and link to material risk
SUPPLIERS
Constructive/cordial
Related risk: 1
Related strategic focus areas: 1, 2
Form and frequency of
engagement
Continuous engagements
through written media (email/
letters) as well as workshops
• Monthly and quarterly
meetings held with various
government departments
• Ad hoc meetings when the
need arises
• Written reports
• Engagement with
government is also
conducted through industry
bodies (see below)
GOVERNMENT AND
REGULATORS (including
environmental-related
engagements
(national, state and
provincial)
Constructive
South Africa: government
departments include the
Department of Mineral Resources
and Energy (DMRE), Department
of Water and Sanitation (DWS),
Department of Environment,
Forestry and Fisheries (DEFF),
Department of Labour (DOL),
among others
Related risks: 2,4, 5, 6
Related strategic focus area: 6
GOVERNMENT
(local municipality)
Cordial
Related risks: 2,4, 5, 6
Related strategic focus area: 6
NON-GOVERNMENTAL
ORGANISATIONS (NGOS),
COMMUNITY- AND FAITH-
BASED ORGANISATIONS
In South Africa: Cordial
In the United States:
Constructive
Related risk: 2
Related strategic focus area: 6
• Local government
participates in the community
engagement forums (see
Communities above)
• Direct engagement with local
and municipal government
via formal meetings
• Monthly and quarterly letters
and reports
• Ad hoc meetings when the
need arises
• Much of this engagement is
via meetings and letters
• Certain NGOs and
civil organisations are
members of the community
engagement forum which
meets quarterly
• Ad hoc meetings are held
when the need arises
28
Sibanye-Stillwater Integrated Report 2019
Material topics for engagement
In South Africa, engagement with
suppliers focuses on black economic
empowerment (BEE) credentials
Sibanye-Stillwater has requested our
non-compliant suppliers to share their
transformation plans and to include
our communities in their plans.
In the US, we continue to educate
contractors and suppliers on their
responsibility to comply with
provisions of the Good Neighbor
Agreement when doing business with
the Company.
• Main topics of discussion
with national and provincial
government relate to:
• SLPs and Mining Charter
implementation – directives
issued when SLP commitments
not met
• Pending environmental legislation
• Instability in mining communities
US PGM leadership meets
routinely with the Montana federal
congressional delegation, as well as
with state and local elected officials
and state and federal regulators
in a variety of capacities to ensure
our elected officials understand our
business direction, needs, and vision,
including our focus on environmental
collaboration
Our strategy to enhance the quality of our relationship
• We require our suppliers to honour our Code of Ethicts and
encourage them to improve their BEE credentials
• Internally, we conducted 10 capacity building workshops in SA at
the various operations on implementation and reporting on the
regulatory requirements relating to the Mining Charter 2018 and
related SLPs to create alignment across the company and with
the regulator
• Ongoing progress is being made to improve respectful
relationship with government
• In 2019, the US PGM operations worked with federal, state,
and local elected officials and regulators on a variety of topics,
including a new Montana rule on numeric nutrients standards,
changes to Montana law that would affect water discharge rules
and proposed changes to federal mining law, as well as a think-
tank discussion with environmental NGOs and other interested
parties
Key issues with municipalities relate
to service delivery, social and labour
plans, environmental and land issues
• Continuing engagement with municipalities in our operating
areas to co-ordinate and collaborate on local economic
development (LED) requirements and planning. The company
works with LED offices of all the municipalities on the delivery
of SLPs
• Tailings facilities management
• Health and safety support for
HIV screening and testing for our
workers and community members
• SLP delivery, human rights issues
and environmental issues
At the US PGM operations:
• Continued progress with the
Good Neighbor groups on
the company’s Emergency
preparedness plan
• A formal response submitted to the Church of England following
their request for information on our tailings management systems
and processes
• Engagement with local NGOs on socio-economic challenges in
mining communities with a view to collaborating on sustainable
solutions
• The relationship with international NGOs and lobby groups
that focus on historical issues in South Africa remains robust
on social and environmental issues. Engagements continue to
find common ground on social development and programmes
supporting social cohesion
• Collaborative discussions have led to a draft plan for
communicating the Emergency Preparedness Plan to potentially
affected parties and local communities
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Status of key stakeholder relationships – 2019 continued
Stakeholder, nature of relationship
and link to material risk
TRADITIONAL LEADERS
Constructive/cordial
Traditional leaders are part of
community leadership structures
and some have leased their land
to Sibanye-Stillwater to enable us
to conduct our business
Related risk: 2
Related strategic focus area: 1
Form and frequency of
engagement
• Annual meetings with
traditional leaders in
labour-sending area
• Quarterly meetings
with leaders in areas of
operation
• Ad hoc meetings when
required
• Local traditional leaders
participate in the
community engagement
forums which meet
quarterly
CUSTOMERS
Constructive
Related risk: 1
Related strategic focus areas: 2, 6
INDUSTRY BODIES AND
ASSOCIATIONS
Constructive
Related risk: 2, 5
Related strategic focus areas: 2, 6
• Regular emails, meetings
and telephonic engagements
on an ongoing basis
• Engagements with NGOs
(such as Drive Sustainability)
who are concerned with
responsible sourcing of
materials that are used
in cars
• Emails and meetings
on a scheduled basis
including Board or Council
representation
• Quarterly meetings with
the International Platinum
Association (IPA)
Material topics for engagement
• Social and labour plans
• Job security
• Health and social impacts of
mining on host communities in
relation to ex-miners
Our strategy to enhance the quality of our relationship
The company presented the operational issues to raise awareness of
business issues and challenges that impact jobs
An awareness programme to ameliorate these impacts in terms of
post-employment benefits will be rolled out in 2020
• Legacy social issues at the
Marikana operations
• A Together for Sustainability (TfS) external audit, witnessed by
BASF, was conducted in January 2020 at the Marikana operations
• Hosted customer visits to our mines and precious metals refinery
during 2019 and early 2020
• The business associations of which we are members regularly
receive strong mandates from their members with respect to
the handling of strategic issues. As a member, we participate in
endorsing the strategies and operational priorities addressed by
the respective business associations.
• Production and metal supply,
including any disruptions or
potential disruptions to supply
• Responsible sourcing of platinum
and palladium
In South Africa:
• The Minerals Council engages
in advocacy with national
government and other
stakeholders on behalf of its
members on pertinent issues such
as minerals regulation, legacy
matters and illegal mining
In the United States:
• the National Mining Association
and the Montana Mining
Association engage in advocacy
on behalf of their members
Internationally:
• Engage with the World Gold
Council, the ICMM, IPA, The
Global Authority for Precious
Metals (LBMA), International
Precious Metals Institute (IPMI)
(US PGM ops) and London
Platinum and Palladium Market
(LPPM) to promote the industry
and the market for precious
metals and to ensure we are
aligned with best ESG practice
globally
We also engage with other entities such as the media, on which we rely as a conduit for our messaging, and to amplify and support
engagement with other stakeholders.
Sibanye-Stillwater Integrated Report 2019 29
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION ENGAGING WITH STAKEHOLDERS CONTINUED
STAKEHOLDER ENGAGEMENT AROUND MARIKANA
Constructive, positive engagement with stakeholders related to the Marikana operations is crucial to the successful integration of the
Marikana operations (previously Lonmin). This is especially so as the shadow cast by the Marikana tragedy of 2012, remains. The complex
stakeholder environment has been compounded by previous poor operational performance (on the part of Lonmin) resulting in delays in
delivery on SLP commitments and non-delivery on unaffordable commitments. We are committed to building new or supplying existing
houses for the widows of employees who died during the Marikana tragedy.
There were several conditions to the Lonmin acquisition to which Sibanye-Stillwater has committed. These are to:
• establish a community engagement forum with the traditional authority and certain local NGOs – these are ongoing
• honour all existing contracts with community-based suppliers (see below)
• understand our delivery obligations on agreed SLP commitments (see below)
• conduct a feasibility study for a regional agri-industrial project
A dedicated stakeholder engagement model has been designed for and implemented at the Marikana operations. To support this model,
a stakeholder segmentation exercise was conducted to identify and categorise stakeholders. The Stakeholder Integration Sub-Committee
(a sub-committee of the PGM operations management committee) was formed in late July 2019 to ensure a thorough understanding of
the issues, and a considered and integrated approach was developed to address issues identified. The committee will manage and resolve
integration issues and provide a platform for developing clear, structured communication.
The most significant of these issues relates to procurement. Currently, around 900 commercial contracts with community-based suppliers
exist, some of which will soon either expire or come up for renewal. Sibanye-Stillwater is committed to honouring all existing contracts on
a commercial basis and an enterprise and supplier development (ESD) strategy that prioritises local procurement spend as approved by the
Executive Committee in November 2019.
However, certain high-value commercial contracts with community-based suppliers have been jeopardised by poor operating performance.
With the planned closure of non-performing shafts, even those community-based suppliers whose contracts are retained will experience
reduced demand for their services and a decline in income. We acknowledge the need to enhance and develop supplier capacity. To ensure
that a meaningful supplier development programme is in place, the business incubator programme provided by Black Umbrella in place in
Mooinooi will be maintained.
We expect the transition period around shaft closures to last around six months during which time the change and uncertainty may cause
some tension with stakeholders in a highly volatile environment. A carefully considered mitigation plan is being implemented to ensure that
stakeholders are engaged throughout the transition and to help them navigate, understand and tolerate the changes, and to develop trust in
Sibanye-Stillwater.
There are extensive SLP commitments to be delivered on by 2020 to meet stakeholder expectations and maintain the mining rights for the
Marikana operation. Delivering on these commitments will help to build on our credibility and trust with stakeholders, both regionally and
nationally. While plans are underway to fast track delivery, oversight and close management will be important to ensure implementation is
of the expected quality, and that there are no unforeseen delays or additional costs.
The high unemployment rate in the greater Rustenburg region, due in part to the decline in mining activity in the region, has been
exacerbated by a lack of economic diversification. There is significant pressure on operating mines to provide employment and procurement
opportunities. This makes management of planned shaft closures and associated retrenchments even more complex. A dedicated co-
ordinated plan has been compiled to communicate the business rationale for shaft closures and retrenchments, to engage with community
leaders on their fears and concerns, and to manage media and NGO responses.
A relationship agreement was entered into between the Marikana operations and the Bapo Ba Mogale traditional authority, which includes
the traditional council and other governing entities as well as the authority’s investment wing. The relationship with the Bapo Ba Mogale
requires significant investment to establish trust and build long-term stability. There are both formal and informal relationships, all of which
must be considered in the design and implementation of a stakeholder engagement strategy.
The proposed engagement strategy will address three key elements to inform stakeholder communication over the next year or so:
• gaining an understanding of stakeholder issues and building rapport, credibility and goodwill with stakeholders
• engaging and consulting with stakeholders on integration and transition issues and mitigating any fallout
• reviewing SLP projects as well as their estimated cost and impact, accompanied by key stakeholders messaging
30
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE PURSUING OPPORTUNITIES AND MANAGING RISK
OUR APPROACH
Sibanye-Stillwater’s profile of risks and opportunities has evolved
substantially following our entry into diversified commodity
markets and jurisdictions. This diversification has given us
exposure to global PGM markets where, in contrast to the
relatively stable gold market, the demand for commodities
may be subject to dynamic shifts in the medium term as the
application environment for the minerals that we produce
evolves. Linkages between the strategic growth trajectory of our
business and development of our strategic risk and opportunity
profiles have been reinforced by integrating our strategy
development and risk management processes. In deriving our
strategic risk profile, our risk management approach and related
systems and processes consider the risks and opportunities
arising from the internal and external environments within which
Sibanye-Stillwater operates and which can potentially impact our
ability to deliver on our strategy and related strategic objectives.
See Our external operating environment on
risks and opportunities are assessed, evaluated, controls identified,
and additional mitigating actions developed where required
to acceptably manage identified risks and to act on potential
opportunities. Identified risks are monitored and reviewed on a
continuous basis to address developments as they occur in either
the external or internal environment. This enables timeous and
appropriate decision making in an environment characterised
by an ever-increasing rate of innovation and developments
in response to internal and external risks and the pursuit of
opportunities. Our risk management process is based on the
ISO 31000 Risk Management: Principles and Guidelines, COSO
Enterprise Risk Management and King IV.
page 17. These
Risk management is a key governance functional area. The Risk
Committee, whose membership comprises a substantial majority
of independent non-executive directors, oversees risk management
on behalf of the Board, which has ultimate responsibility. The
committee evaluates and oversees the implementation of approved
risk management processes and controls to identify, monitor,
mitigate, report and escalate risks and to act on opportunities
identified. The committee formally reviews and approves the group
strategic risk register twice a year.
INCLUSION OF LONMIN
The integration of Lonmin (the Marikana operations) into
Sibanye-Stillwater’s SA PGM operations included the active
identification and management of possible related risks. The
due diligence conducted prior to its acquisition investigated
potential impacts and risks. A further process to identify
integration risks was implemented immediately after the
integration process began. An integration risk register
was maintained on an online portal and managed by the
Integration Steering Committee and various other teams
within the organisation on an ongoing basis.
IDENTIFYING AND MANAGING OUR MATERIAL
OPPORTUNITIES
In reviewing and developing our strategy and identifying
potential risks, we simultaneously consider and prioritise material
opportunities.
At an operating level, our strategy incorporates opportunities for
enhancing operational effectiveness and business improvements
to yield improved safe production results and reductions in
the unit costs of mining. At Group level, broader and longer-
term strategies are explored, including possible developments
relevant to the commodity markets in which we operate and
other opportunities which may result in the emergence of
attractive commodity segments as extensions of our business. Our
acquisition of SFA (Oxford) early in 2019 represents a strategic
decision to broaden our commodities intelligence platform.
Our top opportunities
1
2
3
4
5
6
7
Energy and transport, climate change and atmospheric
pollution – opportunities for PGMs
Commodities and the global economic outlook
Strategic partnerships
South Africa discount
ESG opportunity
Digitalisation and technological advances
Operating segment specific opportunities
1. Energy and transport, climate change and atmospheric
pollution – opportunities for PGMs
Meeting the world’s energy requirements and transportation
needs while simultaneously reducing carbon emissions and
other forms of atmospheric pollution has triggered a rapid
evolution in energy generation and power trains, with energy
storage expected to become an increasingly important feature of
renewable energy systems to support their increasing penetration
into the global energy generation mix. While conventionally
powered transportation based on internal combustion engines
with ever more exacting emissions specifications is expected to
sustain and increase demand for PGMs in the short to medium
term, the mineral requirements of emerging technologies will
not only create new applications for PGMs, many of which
will be linked with the hydrogen economy, but will also open
new opportunities for alternative minerals, particularly those
associated with battery technologies. Sibanye-Stillwater maintains
strategic intelligence on emerging developments to optimise our
position in relation to rapidly evolving commodity requirements
and associated opportunities expected to arise.
Sibanye-Stillwater Integrated Report 2019 31
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
2.Commodities and the global economic outlook
5. ESG opportunity
We are gaining increasing confidence in gold as a key commodity
in an interest rate tightening cycle coupled with an increasingly
turbulent geopolitical environment and threats to world economic
growth such as the outbreak of COVID-19. This creates potential
for the recent trend of global gold consolidation to continue in
the quest for further value creation. While increased economic
turbulence and a potential slowdown in global economic growth
may adversely affect demand for PGMs as a result of tighter global
emissions requirements requiring increased PGM loadings in the
absence of alternatives is expected to sustain strong demand.
Managed substitution of palladium by platinum may secure a
market demand balance more consistent with the supply ratios as
mined, promoting greater market stability and sustainability.
3. Strategic partnerships
Strategic partnerships to ensure the ongoing delivery of value from
non-core assets have advanced significantly. Partnerships with
DRDGOLD, Generation Mining and Aldebaran Resources afford
potential for Sibanye-Stillwater to retain a participation interest
in business opportunities that would be non-core if conducted
directly by our company, with a consequent failure to derive
the full commercial value that could be realised and to distract
management attention from our core operations. We will look to
expanding the scope covered by such associations and that would
allow us to participate in activities that rely on specialist competency
and are complementary to our own core operations. In particular,
the partnership with DRDGOLD has substantial scope to expand the
environmental clean-up conducted on a commercially smart basis
to remediate the legacy deposition practices that were prevalent in
South Africa’s mature mining industry. This would potentially allow
us to partner with other interested stakeholders in the remediation
of derelict and abandoned surface mine sites.
4. South Africa discount
Alleviating the South Africa discount that results in a substantial
overhang on our company valuation and detracts from the cost
and access to capital represents a substantial opportunity that we
seek to capitalise on. As one of the most substantial private sector
employers and the largest mining company in South Africa, we
continue to engage government in association with organised
business around the policy and regulatory framework that would
restore South Africa’s ability to attract investment as the catalyst
for economic growth. While the challenge of eradicating systemic
and entrenched corruption is progressing slowly and the social
and political dialogue continues to skirt around the imperative of
competitiveness in order to appease social partners, recognition of
a looming national fiscal cliff with the country’s credit rating being
downgraded to sub-investment grade and creates a compelling
context for review of economic policy direction. In parallel, we are
also exploring corporate structuring options that would alleviate the
impact of the South Africa discount on Sibanye-Stillwater’s credit
rating in the investment community.
32
Sibanye-Stillwater Integrated Report 2019
We recognise the ever more stringent standards for responsible
mining and business conduct to which stakeholders are holding
companies to account, and the trend in responsible investment
to prioritise investment based on a company position in ESG
indices rankings. In keeping with our purpose to improve
lives through our mining, we recognise the opportunity to
attract stronger support from stakeholders by demonstrating
exemplary ESG performance and an unequivocal commitment
to corporate responsibility. Our positioning is founded not only
on how we operate but also on the uniquely beneficial impact
of the commodities that we produce for society. By meeting
and exceeding stakeholder ESG expectations and distinctive
positioning, we aim to capitalise on the opportunity to strengthen
our brand and reputation and to tap into the growing spectrum
of responsible investment funds.
6. Digitalisation and technological advances
Digitalisation and the fourth industrial revolution provide a broad
range of opportunities to enhance our operating effectiveness,
safe production performance and to reduce operating costs. In
collaboration with the University of the Witwatersrand (Wits) and
through the DigiMine programme, we have piloted a range of
business improvement projects on robotic process automation,
advanced data analytics, management information systems
and automated process control. Substantial scope remains for
digitalisation to make considerably greater impact in improving
the safety, productivity and cost effectiveness of our operations.
7. Operating segment specific opportunities
At the SA PGM operations, further integrating the Marikana
operation by applying Sibanye-Stillwater’s operating and safety
systems and practices and realising further synergies across our
operations in the Rustenburg district following its operational
restructuring, and improve our position on the global PGM mining
cost curve. In addition, strong potential exists to optimise the use
of processing, smelting and refining capacity.
At our SA gold operations, we will focus on setting up the
operations for sustainable lower cost production through
continuous improvement, productivity reviews, footprint
optimisation and by reducing care and maintenance costs.
During 2020, we expect to implement several operational
reconfigurations intended to achieve a lower cost structure in
future planning cycles.
Operational issues at the US PGM operations have largely been
addressed with production from Blitz expected to build up
to approximately 300,000 2Eoz by 2022 and the Fill the Mill
project at East Boulder also on track to increase annual mined 2E
production by 40,000 2Eoz by 2021, yielding total annual steady-
state mined 2E production of 850,000oz at a reduced all-in cost
of approximately US$650/oz.
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE UNDERSTANDING OUR RISKS – OUR RISK MANAGEMENT PROCESS
Our risk management process is supported by the governance structure that comprises experienced and skilled teams who are
committed to the delivery of our strategic objectives.
• Provides risk oversight by understanding and approving the Enterprise Risk Management (ERM) process and overseeing
significant risks
Board
• Provides oversight of the strategy and oversees the achievement of the strategic objectives
• Committees report findings to the Board
• Top Group and segment strategic risks and their mitigating factors are reported to the Board twice a year
Audit
Committee
• Reviews assurances on the Group’s strategic risks
Risk
Committee
• Provides input, guidance and oversight to the ERM process
• Reviews the Group strategic risks twice a year
• Reviews the segments’ strategic risks twice a year
Executive
management
Risk
management
function
• Responsible for overall risk governance of the Group
• Provides leadership, sets the tone and influences approach to risk management
• Considers impact of external and internal environments and provides guidance on risk management
• Establishes and maintains a culture of risk awareness and commitment to Group values
• Sets strategic targets, makes key decisions and ensures ongoing measurement of progress made in achieving targets
• Defines the Group risk appetite and tolerance
• Conducts strength, weakness, opportunity and threat analyses
• Identifies risks through annual group risk workshops, risk register reviews
• Continuously reviews and monitors risks
• Designs and implements the ERM process
• Facilitates the Group strategic risk assessment that aligns to the critical risks to the achievement of Sibanye-Stillwater’s
strategic objectives
• Conducts annual risk workshops and risk register reviews for business units to identify risks and opportunities
• Co-ordinates and collaborates and reports on Group-wide risk management
• Provides training and education on risk management framework and process
• Conducts and oversees risk awareness activities
Operating units,
business units,
segments and
group level
• Implements and oversees daily risk management
• Assesses severity of risks identified for operating segments, other service departments and/or business units
• Conducts ongoing reviews and monitoring of risks
Sibanye-Stillwater Integrated Report 2019 33
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
RISK APPETITE AND TOLERANCE
Our Group risk appetite and tolerance levels are determined, reviewed and approved annually by the Board. Continuous monitoring and
assessments of their relevance are conducted, given the ever-changing economic environment in which we operate.
We define risk appetite as the extent of business risk we are willing to take to achieve our strategic objectives and attain certain financial
and commercial outcomes. In determining 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 tolerance is defined as Sibanye-Stillwater’s readiness to bear a risk in order to pursue its strategic objectives after the risk treatment
has been applied. Our strategic risks are continually monitored against the set appetite and tolerance levels to enable us to identify and
manage those risks that are material to the company.
The Risk Committee assesses and determines risk appetite and tolerance levels annually, in line with the guidelines of the risk
management framework, prior to their submission to the Board.
OUR TOP 10 MATERIAL RISKS
The top 10 strategic inherent and residual risk rankings are reflected in the heat map below
RISK MATRIX: HEAT MAP
Top 10 risks
9
4
9
7
8
10
1
6
1
5
3
8
4
5
2
7
3
10
2
6
T
C
A
P
M
I
5
4
3
2
1
1
2
3
4
5
LIKELIHOOD
Inherent risk rating
Residual risk rating
1.
2.
3.
4.
5.
6.
7.
8.
9.
Under-delivery on operational plans and market
guidance
Socio-political instability and social unrest in South
Africa
Adverse changes in commodity prices and exchange
rate versus projections
Declining health and safety performance
Deteriorating workforce relations and industrial unrest
in South Africa
Unreliable and unaffordable electricity in South Africa
Cyber and information technology (IT) related risks
Inability to deleverage
Inability to close operations
10. High cost of and restricted access to capital
Top material risks by segment
Operationally, risks vary by operating segments. The top five summarised
risks in each operating segment for 2019 were as follows:
SA PGM
operations
SA gold
operations
US PGM
operations
• Wage negotiations
• External social unrest or activism (community, civil
and social action)
• Failure to deliver on business plans
• Safety performance
• Fraud, corruption and unethical behaviour
• Fires in abandoned areas underground
• Seismicity
• Attracting and retaining scarce skills
• Failure to deliver on business plans
• Gold price volatility
• Failure to deliver on business plans
• Excessive debt and high interest rate burden
• Decline in PGM prices
• Significant global economic downturn
• Changes to environmental and mining legislation
and related compliance
34
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE HOW OUR STRATEGIC PILLARS INTERFACE WITH OUR RELATED RISKS AND OPPORTUNITIES
Strategic
focus area
Direct (primary risk)
Indirect
Opportunities
Related risks
1
2
3
4
5
6
2 – Socio-political instability in South
4 – Declining health and safety
Africa
5 – Deteriorating workforce relations
and industrial unrest in South
Africa
performance
7 – Cyber and IT risks
1 – Under-delivery on operational
plans and market guidance
2 – Socio-political instability and
social unrest in South Africa
4 – Declining health and safety
5 – Deteriorating workforce
performance
relations
7 – Cyber and IT risks
6 – Unreliable and unaffordable
electricity
3 – Adverse changes in commodity
1 – Under-delivery on plans and
prices and exchange rates versus
projections
market guidance
4 – Declining health and safety
6 – Unreliable and unaffordable
performance
electricity
8 – Inability to deleverage
9 – Inability to close operations
10 – High cost of and restricted
2 – Socio-political instability in
access to capital
South Africa
5 – Deteriorating workforce
relations and industrial unrest
in South Africa
6 – Unreliable and unaffordable
electricity
9 – Inability to close operations
Enhanced employee engagement contributing
towards a sustainable high performing company
founded on strong principles
Attraction of positive community and stakeholder
sentiment towards the company with strengthened
brand equity
Digitalisation and technological advances
Operating segment specific opportunities for
improving operating effectiveness
Rising commodity prices – palladium, rhodium and
gold – and the global economic outlook
Restoration of a strong dividend flow as the
imperative diminishes at reduced leverage for
capital allocation to reducing gross debt
Attraction of stakeholder support for progressive
businesses that are needed to address the
challenge of securing economic growth supported
by meaningful transformation
Reduced competition for South African mineral
resources as established operators pursue exit
strategies
3 – Adverse changes in commodity
prices and exchange rates versus
projections
1 – Under-delivery on plans and
Strategic partnerships
market guidance
4 – Declining health and safety
Changing energy and transport needs creating
alternative demand for minerals
8 – Inability to deleverage
performance
9 – Inability to close operations
10 – High cost of and restricted
access to capital
Attraction of responsible investment that
recognises ESG excellence
Credibility with all stakeholders attracting broad-
based support for the company’s operations
2 – Socio-political instability and
unrest in South Africa
4 – Declining health and safety
performance
5 – Deteriorating workforce relations
and industrial unrest in South
Africa
S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
I
V
E
S
U
S
L
E
A
D
E
R
S
H
I
P
I
D
E
L
I
V
E
R
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
Sibanye-Stillwater Integrated Report 2019 35
PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
SIGNIFICANT EMERGING RISKS
The evolution of possible key emerging triggers which that may cause a re-evaluation of the likelihood and consequence of the
risks that have been identified:
• Coronavirus (COVID-19) – contributes towards certain of the identified risks (1, 3 and 8 in particular) as a trigger for disruption to
operations (outbreak of disease within our operating footprints or disruption in our supply chain for critical resources) and global
economic slowdown
• Global recession - represents a key trigger for our commodity price and exchange rate risk (3) and has COVID-19 as a key element in its
own chain of causation
For full disclosure on our risks, please refer to the 2019 Form 20-F available on
investors/reports/annual/.
https://www.sibanyestillwater.com/news-
Employees working with preventative gas masks (normal practice) inside the Precious Metals Refinery in SA
36
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION
The top 10 group strategic risks have been ranked according to their residual risk and potential to negatively impact our ability to
deliver on our strategic objectives. The residual risk ranking is based on exposure levels after mitigating action and controls have been
applied, depending on the potential severity of impact and the potential likelihood of the risk occurring.
1 Under-delivery on plans and market guidance – delivery on production volumes and unit cost falling short of commitments
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• High fixed costs
• Organised labour disruptions
Directly: 2
Indirectly: 3,5
• Dependence on key infrastructure
• Disengaged employees
• Deterioration of cash flow
• Lack of mining flexibility and technical
• Cash flow generation from operations
• Highly leveraged and marginal due to
strong rand and or low commodity prices
• Volatile commodity pricing
complexity (e.g. seismicity)
• Stretched or ambitious planning required
to deliver profitable performance under
tight commodity economics
• Orebody information (mineable volume
and grade) subject to uncertainty
• Major critical infrastructure unavailability
• Electricity supply disruption
• Production interruptions arising from safety
incidents
• Additional operating segment specific
factors unpacked in operating segment risk
registers
Consequences
• Low morale
• Job losses
• Unable to retain key employees
• Loss of revenue
• Reduced cash flow
• Inability to repay debt and covenant breach
• Inability to raise equity capital
• Loss of investor confidence
Current controls
Planned control enhancement
• Operational monthly, quarterly and yearly
• Promotion of values-based decision making
planning process – realistic targets –
flexibility
• Detailed capital planning and scheduling
• Operational monthly business review
• Organisational culture growth
• Operating segment specific controls
to address factors causing production
interruptions
process
• Quarterly operating segment reviews
• Recovery planning to address production
shortfalls
• Downscaling and asset restructuring
• Quarterly Board reviews and oversight of
• Domino effect as downscaling passes fixed
operational performance
costs on to other operations
• Reputational impact
• Failure to meet stakeholder expectations
• Deterioration of stakeholder relationships
• Difficulty delivering on community
programmes
• Operating model
– Organisational structure strengthened
leadership capacity for focus on
operations management at segments,
business units and shafts
– Strong segment operational leadership
– Role clarity
– Competent people
• Change management capability
• Business interruption insurance
Legend
Operational
Economic
Financial
Social
Sibanye-Stillwater Integrated Report 2019 37
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
2 Socio-political instability and social unrest in South Africa causing business disruption
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• Historical area of exploitation by individuals
• Unrealistic community expectations from
Directly: 1
Indirectly: 2,4
and interest groups
business
• SA clash of vested interests
• SA high crime rates, rampant organised
criminal activities, Illegal and artisanal
mining
• Failures in municipal service delivery
• Prevailing community expectations not
aligned to current SLP delivery, and/or
Corporate Social Investment initiatives
- Inability to sustain local economic
development projects
• Perception that SLP requirements and
community spending not being met
• Social upliftment agenda hijacked by socio-
political interests
• Community activism
• Dysfunctional local government and
inability to deliver basic community services
• Dire poverty
• High unemployment in South Africa
• Traditional leadership inhibiting flow of
benefit to community members
Consequences
Current controls
Planned control enhancement
• Business and operational disruptions
resulting in inability to deliver on
operational plans
• Safety and security compromised
• Increased costs
• Negative impact on employee morale
• Reduced cash flow
• Stakeholder engagement
• Re-based relationships with local
• Security Interaction/Intelligence, and
Stabilising Plans and Protocols
• Public relations campaign
stakeholders
• Appropriate prioritisation of social
implications in business decisions
• Investment in local economic development
• Concentric Alliance Community Compact
• Influence and involvement in the Minerals
• Development of inclusive socio-economic
development strategies for the areas
where we operate subscribed to by all
stakeholders
• Mining licence uncertainty
Council
• Company expected to compensate
• Central engagement forum
for local government shortcomings by
providing social infrastructure
• SLP pressure and costs
• Reputational impact
• No cross-subsidisation
• Creation of deliverable SLPs Revised
procurement capacity
• Geographical and commodity
diversification
Legend
Operational
Economic
Financial
Social
38
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
3 Adverse changes in commodity prices and exchange rates versus projections
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
Directly: 3
Indirectly: 5
• Mature orebodies with limited flexibility to
adapt to a different economic context
• Difficult to plan confidently
• Short-term decisions may impact future
sustainability of operations
• Economic downturn (e.g. local, national,
global) affecting global automotive
demand
• Decreasing metals demand leading to
decreasing metal sales prices
• Aggressive competitor strategic actions
causing supply demand imbalances
• US/China trade wars – global evolution of
trade treaties – Brexit - escalating conflicts
• Demonisation of diesel power trains
resulting in platinum demand downturn -
anti-diesel movement
• Transport emission standards
• Policies across major economies on
hydrogen infrastructure and fuel cell
emergence
• Political direction of South Africa and
ability to recover from the downgrade to a
sub-investment credit rating
• Adverse exchange rate movements - false
sense of security of strong ZAR
Current controls
Planned control enhancement
• Operational planning optimised to sustain
profitability
• Specialised intelligence on commodity and
financial markets through SFA (Oxford)
• Capital project optimisation and scheduling
• Commodity and geography profile drawing
on individual commodity and currency
counter-cyclicity (though effectiveness not
ideal with SA and PGM dominant)
• Securing strong ESG credentials to sustain
global confidence in commodity supply
chains as a boost to demand
• Advocacy for PGM intensive technology
as the preferred pathway for addressing
priority global issues
• Securing position towards the lower
end of global cost curves (focus on safe
production) to weather period until
commodity supply demand balance
restored
Consequences
• Decrease in revenue
• Increase in unit costs
• Low/negative cashflow
• Decreased business unit profitability
resulting in potential
• Retrenchments - job losses, potential
layoffs
• Cessation or downscaling of mining
operations
• Elevated social instability in the areas
surrounding mining operations
• Lack of capital investment for organic
growth
• Increase in capital projects expenditure due
to stop/start decisions
• Inability to deleverage - increased leverage
• Covenant breach
• Equity issuance
• Reputational impact
• Decreased share valuation
• Inability to execute growth strategy
Legend
Operational
Economic
Financial
Social
Sibanye-Stillwater Integrated Report 2019 39
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
4 Declining health and/or safety performance – safety performance not meeting expectations or aligning with the Group’s safe
production approach
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• History of two anomalous multiple
• High risk behaviour by employees
Directly: 2
Indirectly: 1,3,5
fatality events in 2018 creates elevated
reputational consequences for any
perceived safety shortcomings
• Potential desensitisation to events may
influence attitudes to safety
• Disregard for rules and procedures by some
underground employees
• Non-alignment with values and culture for
health and safety by some employees
• Technical complexity and depth of
operations
• Labour intensive operations
• Narrow nature of the ore body
• Mature mines
Consequences
• Increase in fatalities
• Increase in serious injuries
• Negative reputational impacts
• Reduced employee morale and
engagement
Current controls
Planned control enhancement
• Mine health and safety management
• ISO 45001 Occupational Health and Safety
system
Standard implementation
• Safe operating standards and procedures
• Intensified behavioural intervention
• Appropriate safety function
• Board sub-committee providing oversight
• Operating segment specific controls to
address root causes of safety incidents
• Culture growth programme
• Values based decision making
• Critical controls implementation
• Enhanced risk management processes,
including the roll out of the bow-tie
methodology
• Adverse relationships with stakeholders
• Employee training and awareness
(customer, organised labour, shareholders,
community)
• Operational / business disruption resulting:
– in loss of production
– increased expense
• Behavioural intervention
• Appropriate appointments with specified
health and safety responsibility and
accountability
• Safety campaigns
– negative impact on sustainability of
operation
• Safety rewards and recognition (and
consequences for poor performance)
• Increased regulatory and stakeholder
• Participation in industry safety bodies
scrutiny
• Legal consequences
• Fines and penalties
Legend
Operational
Economic
Financial
Social
• Auditing for compliance to safety
standards
• Seismic monitoring systems
40
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
5 Deteriorating workforce relations causing industrial unrest and compromised employee engagement, strike or other
industrial action
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• Unionised workforces across all operations
• Unresolved grievances and disputes
Directly: 1
Indirectly: 2,6
• Inter-union rivalry and militancy
• Unrealistic demands and particularly wages
• Destructive nature of SA unions
• Major safety incident
• Politicisation of union activities
• Increasing negative safety performance
• Lack of alignment and mistrust between
• Inter-union rivalry and violence
the organisation and the unions
• Downscaling of operations
• Community unhappiness negatively impact
employee sentiment towards the company
• Societal inequality in SA and unmet
expectations of economic freedom under
democracy
• Large labour force (>80,000 people
and growing)
• Under delivery on SLPs
• High/excessive community expectations
• Legacy perspectives of business as
exploitive capital
Consequences
Current controls
Planned control enhancement
• Loss of production efficiency
• Employee relations structure providing for
• Re-based relationships with organised
• Negative impacts on employee
morale, engagement, productivity and
accountability
capacity to manager employee issues
labour
• Collective agreements
• People Advisory Committee
• Employee safety and possible loss of lives
• Whole health action management training
• Reputational damage with stakeholders
programme (WHAM)
• Property damage
• Job losses
• Unrealistic wage demands
• Benchmarking/competitive wages and
benefits (US)
• Direct employee communication
• Community outreach programmes
• Diversification into different metals to
contain the risk exposure to one metal
• Effective security function
• Influence and involvement in the Minerals
Council
• Insurance policies in place (SASRIA and
Gross profit)
Legend
Operational
Economic
Financial
Social
Sibanye-Stillwater Integrated Report 2019 41
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
6 Unreliable and unaffordable electricity (SA)
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• SA gold operations and SA PGM
• Eskom debt service costs, productivity and
Directly: 3
Indirectly: 2
operations are energy/electricity intensive
input costs
• No near-term alternatives to Eskom power
• Eskom fixed costs excessive with national
supply – inflexible national electricity
regulation
power requirements lower than anticipated
due to low GDP growth
• Dependency on ageing electricity (third
• Eskom operations management quality
party) infrastructure
• Limited efficiency improvement
opportunities
• Unavailability of generating plant
(Eskom and other sources) arising from
breakdowns and other factors
• Obstacles to establishment of private
power generation
Consequences
Current controls
Planned control enhancement
• Safety and security of employees
• Emergency generators in place
• Energy monitoring and management
• Safety and security of infrastructure
• Representations to the regulators on price
systems
• Operational disruptions, Eskom impact on
increase impacts
gold production (Level 4)
• Operational costs increase
• Electricity efficiency projects
• Optimise usage of electricity
• Increased costs and margin reductions
• Load shedding controls
• Decreased profitability in operations
• Bankable feasibility on solar project
• Implemented processing alternatives
• Loss making business units resulting in
possible downscaling or cessation of
operations
• Large-scale job losses
• Loss of investor confidence
• Impact on operations, investors’
perspective, reputation, business disruption
Legend
Operational
Economic
Financial
Social
42
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
7 Cyber and IT risks
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
• IT network enabled equipment
• Information Technology and Operational Technology
• Cyber breaches
• Failing hardware
Strategic objectives affected:
Directly: 2
Indirectly: 1
systems dependencies
• High number of Information Technology and
Operational Technology systems
• Risks associated with cloud-based computing
• Increase global cyber-crimes
• Systems not integrated
• Old or obsolete IT application systems and equipment
• Reduced or no legacy system support from original
equipment manufacturers (OEMs)
• Inadequate disaster recovery capability
• Unknown or unsupported systems installed on users’
personal computers
• Various end users lack the technical background to
identify and report a threat
• Voluminous personal information stored within IT
systems
• Increased costs
• Automated equipment and technology
• Multiple systems and systems added with acquisition
• Increasing global regulation relating to personal
information protection
• Including release of Protection of Personal Information
Act (POPI)
• Digitalisation and process automation increasing
exposure, ubiquity and dependence
Consequences
Current controls
• Loss of data
• Breach of confidential information
• Extortion in order to regain control of
company data
• Increased costs
• Operational disruptions
• Health and safety risk to employees if IT
operational systems fail
• Tarnished reputation and/or image
• Fines and/or legal expenses
• Legal liability
• Business interruptions
• Internal and external fraud
• Sarbanes-Oxley controls
• Firewalls with adequate rule set
• Internal and external security monitoring – Security
Operations Centres
• Multiple character passwords
• Systems and security patching
• Closed USB/external device ports
• Quarterly penetration/vulnerability testing
• Frequent system backups
• Disaster Recovery System in place and regular testing
• Incident response protocol
• ICT Code of conduct
• Employee user education
• Internal assurance
• IT Policies and procedures
• Cyber and Directors and Officers insurance
• Segregation of networks
• Code of Ethics
• Code of conduct
Legend
Operational
Economic
Financial
Social
• Failing network infrastructure
• Failed disaster recovery
• Network outage
• Cyber attack
• Breach of privacy
• Hacking
Planned control enhancement
• POPIA management system
• Corporate crisis management
protocol
Sibanye-Stillwater Integrated Report 2019 43
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
8 Inability to deleverage
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• Underlying vulnerabilities
• Reduced revenue due to operational under
• High levels of debt with associated debt
performance
service and / or interest cost
• Decrease in commodity prices
• Operational under-delivery identified as a
• Higher than plan operational cost, over
Directly: 3
Indirectly: 5
top risk
• Alternative financing options restrictive or
too expensive
• Sensitivity to strong rand and commodity
price fluctuations
• Market sensitivity to distressed capital
raises
expenditure and above inflation increases
reducing cash generation
• Operational disruptions such as safety
stoppages, electricity supply and industrial
action resulting in reduced production and
reduced cash generation
• EBITDA shortfalls
• No or low cash flow generation
• Failure to reduce net debt
• Exchange rate movements increasing value
of foreign denominated debt
Planned control enhancement
• Contingency lending facilities
Consequences
Current controls
• Covenant breach and pressure on liquidity
• Refinancing on restrictive and more
• Short interval controls, analysis and reviews
of operational delivery at segment level
expensive terms
• Inability to secure sufficient liquidity
• Maintaining open/transparent
communication with lenders
through refinancing
• Hedging
• Inability to raise equity capital
• Trend and forecast analysis
• Major restructuring
• Reputational impact
• Loss of shareholder confidence
• Increased institutional investor scrutiny
over management of business
• Negative investor, market and / or analyst
perception
• Share price underperformance
• New organisational structure that provides
for operational focus to manage the
operating segments
• Quarterly segment reviews to understand
the challenges and opportunities of the
operations
• Regular investor updates and investor
feedback to understand the market
perception
Legend
Operational
Economic
Financial
Social
44
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
9 Inability to close operations
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• Interconnectedness of shafts and
Directly: 3
Indirectly: 2,4
neighbouring mine sites – primarily in the SA
gold segment
• Political unwillingness on the part of
regulators relating to the shift in liability to
the state following closure
• Need for regional closure strategies
subscribed to by all stakeholders in the
region
• Poor closure planning - assumptions
regarding closures being incorrect
• Administrative processes cumbersome
• Administrative processes hijacked by
affected parties
• Influence of social and environmental
advocacy groups
• Opposition from neighbouring mines and
other affected parties
• Unclear governing legislation
Consequences
Current controls
Planned control enhancement
• Increased operating costs
• Decoupling of shafts within gold mines
• Regional analysis of closure implications
• Reduced cashflows from operating
segments – non value-adding Group
liability
• Rising costs associated with closures
• Increased closure provisions
• Inability to dispose of marginal assets
and from neighbouring mines
specifically with respect to water
• Engagement with neighbouring producers
• Obtain clarity about the legal processes
• Legal processes
• Socio economic closure through Bokamoso
• Engagement with stakeholders
• Concurrent rehabilitation
Ba Rona
• Establish regional closure committee
• Investigate underground tailings deposition
Legend
Operational
Economic
Financial
Social
Sibanye-Stillwater Integrated Report 2019 45
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION PURSUING OPPORTUNITIES AND MANAGING RISK CONTINUED
TOP 10 GROUP RISKS: DESCRIPTION, LIKELY IMPACT AND RELATED MITIGATING ACTION CONTINUED
10 High cost of and restricted access to capital
Type of risk and strategic impacts
Underlying vulnerabilities
Triggers
Strategic objectives affected:
• Large South African exposure
• Company credit ratings downgrade - Sub-
Directly: 3
Indirectly: 5
Consequences
• Impaired liquidity
• Restrictive covenants
• Refinancing on less-favourable commercial
terms
• Increased cost of borrowing – potential for
black swan event (COVID-19 for example)
affecting South African interest and
exchange rates
• Inability to raise capital or cost of capital
• Inability to deliver
• Inability to pursue growth
• Complexly inter-related impacts over
different time scales on profitability,
earnings, debt capital, debt service costs
and sustainability
Legend
Operational
Economic
Financial
Social
• Uncertainty relating to political dominance
investment grade credit rating,
in the South African ruling party
• High leverage – high gearing
• Uncertainty relating to the trajectory for
restoration of weakened independent
national institutions
• High levels of debt
• Covenant breach
• Operational under performance
• Low levels of cash flow
• Location of operating footprint, listing
jurisdictions and domicile – reduced
investor confidence in South Africa
• Country credit rating downgrade and
capital outflows
Current controls
Planned control enhancement
• Open/transparent communication and
relationship with providers of debt capital
• Review of listing and domicile implications
on cost of capital and access to capital
• Financial and operational delivery to
improve benchmarks – credit ratings
agencies and providers of debt
• Contingency plan to cater for major
deterioration in South Africa’s national
creditworthiness
• Operational delivery resulting in meeting
cash flow targets in order to repay debt
and to reduce leverage
• Regular and proactive updates to lenders
and investor
• Proactively manage relationship with the
banks
• Suite of structure and mechanism available
to manage finance costs
• Reducing gearing
• Structured long-term debt pipeline with
debt service costs locked in and limited
need for re-financing
46
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
I
V
E
S
U
S
L
E
A
D
E
R
S
H
I
P
I
D
E
L
I
V
E
R
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
PGM ore on a conveyor belt at the SA PGM operations
Sibanye-Stillwater Integrated Report 2019 47
HOW WE CREATE VALUE – OUR BUSINESS MODEL
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
S
U
S
E
V
I
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
UNDERSTANDING
THE WORLD IN
WHICH WE OPERATE:
• Geopolitics and
macro-economy –
global economic
growth, interest
rates, rand-dollar
exchange rate and
commodity market
fundamentals
• Socio-economic
and political
context in South
Africa
• Regulatory changes
• Power security
and costs in South
Africa
• Climate change
OUR COMPETITIVE
ADVANTAGE:
• Record of strategic
transactions and
partnerships
• Quality of portfolio
and its geographic
and product
diversity
• Mine-to-market
PGM pipeline on
two continents,
including recycling
• Following recent
acquisitions,
entering period of
consolidation and
reduced capital
expenditure
WHAT WE DO
Guided by overarching governance framework
Acquiring and mining
economically viable
orebodies
Extracting, processing
and refining precious
metals, including
recycling operations
Environmental
management and
rehabilitation
Sales, marketing and
financial management
while simultaneously engaging with stakeholders
WHAT WE USED
FINANCIAL CAPITAL
• Equity, debt and cash flow,
used to enhance other
resource inputs
• R7.7bn spent to sustain and
grow the business, as well as
R1,103 million (US$77 million)
to acquire Lonmin
HUMAN CAPITAL
• Our workforce – employed
69,450 people, including
15,071 contractors
• R744m invested at the SA
operations in training and
skills development, attended
by 146,978 employees and
community members*
• Emphasis on safe, healthy
production, guided by safety and
health framework
• Committed leadership and their
development
• Group-wide cultural transformation
programme underway
SOCIAL AND RELATIONSHIP
CAPITAL
• CARES values and Code
of Ethics which guide all
stakeholder interaction
• Relations with key
stakeholders:
– employees and organised
labour
– communities
– regulators and all levels of
government
• Social licence to operate
MANUFACTURED CAPITAL
• Mining rights for seven PGM
NATURAL CAPITAL
• Economically viable orebodies
and four gold mining operations
on two continents
• Associated infrastructure,
equipment and machinery,
processing plants and refineries
• PGM recycling facility in the
United States
• Capital expenditure (growth
projects) of R2.3bn
• Expenditure on sustaining
the business and ore reserve
development of R5.4bn
– Mineral Resources and
Mineral reserves –
mined 33Mt PGMs and
42Mt gold
• Land under management –
73,660ha in SA and 650ha
in the US
• Resources consumed:
– 50,156ML water
– 5.98TWh electricity
– 29,846kl diesel
* Includes multiple training sessions per individual
INTELLECTUAL CAPITAL
• Optimised mining processes
and systems underpinned by
institutional knowledge and
intellectual property
• Internal controls, risk and
accounting systems
• Digitalisation
• Governance, human resource
and safety systems
48
Sibanye-Stillwater Integrated Report 2019
HOW WE DELIVER OUR GOALS
Strategic focus areas:
Establishing a
values-based culture
Focus on safe production
and operational excellence
Deleveraging our
balance sheet
Pursuing value-accretive
growth
Addressing our
South African discount
Overarching
ESG imperative
BY MANAGING RISKS
AND ACTING ON OPPORTUNITIES
KEY RISKS
• Failure to deliver on plans and
market guidance
KEY OPPORTUNITIES
• Changing energy and transport
needs – opportunities for PGMs
• Socio-political instability and
• Gold and global economic
unrest in South Africa
• Negative deviations in
commodity prices and exchange
rates from forecast
• Below par safety and health
performance
• Deteriorating labour relations
outlook
• Strategic partnerships
• South Africa discount
• ESG opportunity
WHAT WE DID
PRODUCED:
PLATINUM
1,081,655oz 949,490oz
PALLADIUM
RHODIUM
141,118oz 962,702oz
GOLD
DEPOSITED:
PGMs RECYCLED:
GENERATED:
TAILINGS
33.76Mt
(into TSFs and pits)
WASTE ROCK
2.23Mt
3E PGMs
REVENUE
853,130oz R73bn
WHAT WE CREATED
AND SHARED
EMPLOYEES AND UNIONS
• R21.1bn paid in salaries and wages to employees
• R744 million spent on training and development
• 23% increase in SA talent pool for leadership development
• Gender diversity – 13% of all employees are female
• Constructive meaningful relations with unions
• Improved safety performance with an overall LTIFR of 5.23
• Six fatalities at SA PGM operations
INVESTORS
• Strategic acquisitions increase inherent value of company
• Operational excellence, stringent cost control and
improved productivity remain essential to ensuring value
• Ratio of net debt to adjusted EBITDA reduced to 1.25x
• Share price increased over year by 258% to R35.89 a
share – market capitalisation of R96bn at year-end
• Dividend payments were expected to resume in 2020,
based on current deleveraging trajectory and subject to
current commodity prices (before the impact of COVID-19)
COMMUNITIES
• Striving to improve community engagement and relations
• Social compact in place
• Local employment a priority
• R1.6bn (US$110m) spent on social and labour plans and CSI
• Responsible and preferential local procurement – R19.6bn
(US$1.4bn) spent in total on procurement in South Africa, of
which R14.5bn (US$1bn) was spent with BEE companies
GOVERNMENT AND REGULATORS
• Emphasis on maintaining positive relations
• Ensuring our licence to operate – environmental
compliance a priority
• Compliance with all regulatory requirements
• R1.9bn (US$128m) paid in taxes and royalties
• Additional R4.2bn paid in taxes on behalf of South
African employees
ENVIRONMENTAL IMPACTS AND OUTCOMES
• Impact on environment and biodiversity – five
environmental incidents (level 3) (2018: five)
• Carbon emissions – intensity of 0.16t CO2e per
tonne milled
• Water is a scarce resource – reduction in net
water used
• Purchased water at SA gold operations reduced
• Energy intensity GJ/tonnes milled for SA operations
• Improved water resource quality for communities,
environment – 80% average compliance (79% in 2018)
• Footprint Reduction Programme resulted in reduced
water and energy consumption; dust; and AMD*
potential
* Acid mine drainage
Sibanye-Stillwater Integrated Report 2019 49
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION KEY IMPACTS AND CAPITAL TRADE-OFFS
In order to ensure the sustainability of the Company, Sibanye-Stillwater aims to create sustained value for all stakeholders. Sustained
value creation requires us to continually optimise all resources at our disposal, to allocate them appropriately having considered various
perspectives: financial, social, ethical and environmental. We must weigh up the pros and cons of every strategic business decision
before making what are often difficult decisions. Below are the key trade-offs we considered and major business actions we took during
2019, as well as the rationale that guided our thinking.
Major business
move
Pros
Key trade-offs
Cons
1. Robust
• Preserve integrity
• Significant losses
approach to
SA gold wage
negotiations
Conscious decision
to weather extended
gold strike
of reasonable wage
agreements concluded
with other unions that
were necessary to support
longevity of the SA gold
operations
• An opportunity to clarify
our role in our relationship
with militant unions prior
to PGM wage negotiations
in H2 2020 and Lonmin
acquisition and related
restructuring
experienced by SA
gold operations in H1
2019 and extending
into Q3 2019
• Social distress and
financial hardship
associated with loss of
employee earnings and
suspended procurement
of goods and services
• Violence pursuant to
inter-union rivalry
and tactics to
intimidate employees
into participating in
strike action
Decision rationale
Capitals considered/affected
Preserving the integrity
of the reasonable wage
agreement already concluded
with the other unions was a
pre-eminent consideration
to promote the longevity of
the SA gold operations that
were in financial distress.
The outcome of the strike
was the acceptance of the
wage agreement on the
original terms along with
increased clarity of roles in
our relationship with AMCU
and the retention of our right
to manage.
Financial – heightened prospects of
a sustained viable economic future for
the SA gold operations with temporary
destruction of value
Natural – improved prospects of
realising value from SA’s mineral
resources
Human – improved prospects of
sustained employment temporary
financial hardship due to loss of earnings
violence prompted by inter-union rivalry
caused injury and loss of life
Social – improved prospects of gold
mining continuing for longer as a catalyst
for development of local communities;
temporary business distress for suppliers
and reduced economic activity; damage to
property resulting from inter-union rivalry
Employee working underground at the SA gold operations
50
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Major business
move
Pros
Key trade-offs
Cons
2. Restructuring
at the SA gold
operations
• Address ongoing financial
losses from Beatrix 1 and
Driefontein 2, 6, 7, 8 shafts
A move to set
up the gold
operations with a
production footprint
and operating
model conducive
to sustained
competitiveness.
• Ongoing losses would
compromise the viability
of wider portions of the
affected mines, and the
business itself, and thus
place additional jobs at risk
• Restoration of profitability
resulting in a more
sustainable production
profile
• Retrenchments and
associated costs
(human, social and
financial)
• Loss of and impairment
of mineral/ore reserves
• Negative social
sentiment and impact
relating to ongoing
downscaling in the SA
gold mining industry
• Possibly adding to
illegal mining risks
Decision rationale
Capitals considered/affected
Securing a sustainable
future for the SA gold
operations requires an
ongoing reduction in
fixed overhead costs –
necessary restructuring
for the operating footprint
conducive to profitability and
sustainability. The benefits
in terms of an extended
production profile creating
employment and value
creation over a longer-term
horizon were deemed to
outweigh the short-term
impact of downscaling.
As a result of a formal Section
189 consultation process that
concluded in June 2019, it
was agreed that:
• Beatrix 1 and Driefontein 2
shafts were placed on care
and maintenance
• Driefontein 6 and 7 shafts
and Beatrix 2 plant were
closed
• rationalisation of
accommodation and
training facilities, and
health care centres to
continue
Driefontein 8 shaft will
remain in operation for as
long as it continues to make
a profit over any rolling
three-month period.
Financial – costs of the restructuring
amounted to R357 million and no
financial impairment was incurred
as a result
Fixed costs reduced by approximately
R800 million (mainly due to reduced
operating costs and sustaining capital
investment) as a result of shafts being
placed on care and maintenance
Manufactured – a reduction of
approximately 3,000kg (96,454oz) loss
making production
Human – approximately 3,450
employees were affected by the
restructuring, nearly half of what was
originally envisioned, with involuntary
retrenchments limited to approximately
800 employees and 550 contract
workers. Voluntary separation, early
retirement and natural attrition
accounted for the bulk of the jobs
affected
Social – practical skills training is offered
to retrenched employees to develop
other skills which can be practised/
applied in their local surroundings
Natural – reduction in mineral resources
and reserves
Sibanye-Stillwater Integrated Report 2019 51
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION KEY IMPACTS AND CAPITAL TRADE-OFFS CONTINUED
Major business
move
3. Balance sheet
and cashflow
management
strategies
Decisions to
emplace financial
mechanisms to
enhance Group
liquidity and secure
headroom to debt
covenants
Pros
Key trade-offs
Cons
Decision rationale
Capitals considered/affected
Financial – the capital raised enhanced
balance sheet flexibility and reduced
financial risks during an uncertain period
(the extended SA gold strike)
The solid support shown by the market
for the Group, for these capital raising
events, was an instrumental factor in the
capitulation of AMCU leadership’s wage
demands, and an ending of the strike
Social – improved prospects of
negotiated and undisputed settlements
for upcoming PGM wage negotiations
and Lonmin employee restructuring
negotiations
As losses related to the
five-month AMCU strike at
the gold operations mounted,
a decision to bolster group
liquidity and enhance balance
sheet flexibility was made in
order to ensure that Sibanye-
Stillwater was appropriately
positioned and sufficiently
robust to endure any
exogenous challenges.
Both financing transactions
additionally accelerated
Sibanye-Stillwater’s
deleveraging by reducing
debt and improving
ND:EBITDA ratios.
While an additional 109
million shares were issued,
they were issued on
favourable terms at only a
2% discount to the 30-day
share price VWAP, and a
14% premium to the
90-day share price VWAP.
While the forward sale
results in the obligation
to deliver gold into the
agreement with revenues
on delivery applied
towards settlement of the
prepayment, it is a cost-
effective form of raising
financing with the interest
cost of the forward sale
lower than that of the USD
RCF. Sibanye-Stillwater
was required to implement
a price collar providing
downside gold price
protection but capping
the price that Sibanye-
Stillwater could receive
on the allocated gold
deliveries.
Securing additional capital
and low-cost financing
through these arrangements
was deemed prudent to
ensure the financial integrity
of the company in the event
that the strike continued.
Additionally, simultaneously
executing the transactions
to increase liquidity by
approximately R3.5 billion
five months into the strike
action clearly demonstrated
the business intention
to secure modest and
sustainable wage increases,
and its ability to weather
extended strike action.
A R1.7 billion (US$120
million) share placement
was undertaken on 10
April 2019 and a forward
gold sale arrangement
for approximately R1.75
billion (US$125 million) was
executed on 11 April 2019.
The transactions presented
the opportunity to, at worst,
accelerate deleveraging at a
very modest cost.
52
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Major business
move
Pros
Key trade-offs
Cons
4. DRDGOLD
• Maintains the
• Cash outflow of
acquisition
A move to exercise
the option to
increase our stake in
DRDGOLD to 50.1%
consolidation of DRDGOLD
production in Group
operating and financial
results post expiry of
the option period in
January 2020.
R1 billion associated
with exercise of option
• Attractive return on the
investment required to
exercise the option.
• Positions Sibanye-
Stillwater as a leading
role player in addressing
environmental legacies
and related social impacts.
• Provides cash for
DRDGOLD to capitalise its
operations and potential
to expand into other
application areas aligned
with its specialised
competencies
• Maintains DRDGOLD
dedicated focus on
specialised tailings
re-treatment operations
Decision rationale
Capitals considered/affected
Natural: addresses environmental
legacies associated with historical gold
tailings deposition practice
Social: removes social impacts related
to tailings deposits and frees land for
alternative development of communities
established around tailings deposits
Intellectual: Sibanye-Stillwater
gains access to specialised tailings
reprocessing expertise and experience
The transaction structuring
retains DRDGOLD’s dedicated
and specialised operating
scope with Sibanye-Stillwater
sharing in the commercial
returns and strategic benefit.
The exercise of the option is
positive for both Sibanye-
Stillwater and DRDGOLD. In
January 2020, at the time
when Sibanye-Stillwater
elected to increase its
holding, the value of our
initial shareholding of 38.5%
for which we vended selected
surface assets into DRDGOLD
to process, had already
increased by 147% over
17 months.
The additional interest to
50.1% acquired at a 10%
discount to the 30-day
volume weighted average
traded price of DRDGOLD’s
shares for a total of R1bn.
One of the tailings storage facilities to be proccessed by DRDGOLD
Sibanye-Stillwater Integrated Report 2019 53
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION KEY IMPACTS AND CAPITAL TRADE-OFFS CONTINUED
Major business
move
5. The acquisition
of Lonmin Plc
A move to conclude
our strategic PGM
positioning
Pros
Key trade-offs
Cons
• Detailed analysis of PGM
market fundamentals
supported significant
investment in the sector
• Confidence in ability to
realise cost synergies
from prior consolidation
experience – ensuring
creation of value under
conservative economic
parameters
• A critical element of our
SA PGM mine-to-market
strategy – giving us control
of the full PGM pipeline
from mining to smelting
and refining of PGMs
• PGM prices depressed
since global financial
crisis
• Ongoing operational
underperformance and
financial losses adding
to Lonmin’s financial
distress
• AMCU and other social
activist organisations
position against the
transaction. Clarification
of the role of the
union and the right
of management to
manage the operations
• Inheritance of Lonmin’s
• Makes Sibanye-Stillwater
legacy issues
• Necessity for
extensive stakeholder
engagement –
communities,
government, NGOs,
shareholders – over the
course of the acquisition
process
• Increased the absolute
greenhouse gases for
the Sibanye-Stillwater
Group and other
emissions (including
SO2) from the Lonmin
smelter and processing
plants, as well as
increased water
consumption but from
a holistic point of view,
the effect is zero
the largest primary
producer of platinum
and rhodium and second
largest of palladium
• Provides improved
prospects of operational
sustainability for the
Lonmin operations as
part of a larger, more
diverse footprint giving
rise to synergies with
resultant benefits for all
stakeholders including,
most importantly,
employees and host
communities
• Metal processing capacity
in Lonmin, with its
concentrators, smelter and
refineries, allows us to sell
our PGMs directly into the
market complementing the
transition from purchase
of concentrate to toll
processing of the PGMs
from our Rustenburg
operation
Decision rationale
Capitals considered/affected
The acquisition of Lonmin
has proved to be a sound
business decision, logically
concluding the company’s
PGM strategy and positioning
Sibanye-Stillwater in a
favourable strategic position.
It was recognised that the
potential for enhanced
operational sustainability of
the Lonmin operations would
benefit all our stakeholders.
Lonmin’s inherent gearing
to the rising PGM basket
price in 2019 and the
strategic benefit derived
from utilisation of excess
processing capacity to
mitigate the temporary
closure of Anglo Platinum’s
processing facilities in Q1
2020.
Financial – the R4.3bn (US$290m)
cost of the acquisition was significantly
less than the replacement cost of the
processing operations alone
The expected payback period for
Lonmin is being shortened further by
utilising spare capacity of the Marikana
processing facilities
Restructuring enables realisation of
an expected R1.2billion in annual cost
savings/synergies by end 2020, well
ahead of forecasts
Manufacturing – acquired smelting and
refining capacity, providing Sibanye-
Stillwater with significant strategic
flexibility
Human – employee headcount increased
by 20,200 (excl contractors), together
with the related bill for salaries, wages
and benefits
Intellectual – we secured an existing
market interface through which to
manage all our SA PGM sales as well
as proprietary beneficiation technology
and know-how, affording substantial
processing flexibility for our SA PGM
production
Social – opportunity to address negative
legacy with communities in the vicinity
of the Marikana operation (formerly
Lonmin)
Natural – increased 4E PGM production
by 507,598oz (for seven months in
2019) and 4E PGM mineral resources
and reserves by 124.3Moz and 9.2Moz
respectively
54
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Major business
move
Pros
Key trade-offs
Cons
6. Marikana
• Offsetting of ongoing
• Social and financial
impact on employees
and local communities
restructuring
(formerly
Lonmin)
A move to set
up the Marikana
operations
for sustained
competitiveness
following the
acquisition in
June 2019.
financial losses
experienced at these
operations, with certain
shafts having reached
the end of their economic
reserve lives, to restore
profitability and ensure
sustainability
• Rationalisation of
overheads, realisation of
potential synergies and
efficiencies
Decision rationale
Capitals considered/affected
Financial – the cost of the restructuring
amounted to R619 million
Human – 1,142 employees were
involuntarily retrenched and contractor
numbers reduced by 1,709. In addition,
1,612 employees were granted voluntary
separation packages, 53 proceeded on
normal retirement and natural attrition
accounted for 259 employees. Enables
sustainable employment for more than
20,000, however, in the longer term
The restructuring was
considered necessary for
the Marikana operation
to secure a competitive
cost structure aligned with
the orebody available for
mining and conducive to its
longer-term sustainability. The
restructuring was concluded
post year end in January 2020.
The following actions were
deemed necessary:
• Cessation of operations
at mature generation
one shafts, East 1, West 1
and Hossy shafts and the
open-cast mining with
arrangements agreed
through the consultation
that permitted 4B shaft to
continue in operation
• Optimisation of
downstream concentrators,
smelter and refineries,
including closure of the
Eastern Platinum C-stream
and Rowland concentrator
plants
• Rightsizing of related
support services and
overhead structures
Employees at the Precious Metals Refinery in South Africa
Sibanye-Stillwater Integrated Report 2019 55
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SECTION
03
LEADERSHIP
Building a values-based
culture
57 Leadership point of view
60 Chief Financial Officer’s report
68 Social, Ethics and Sustainability Committee:
chairman’s report
70 Corporate governance
92 Remuneration report
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
I
S
U
S
E
V
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
56
Sibanye-Stillwater Integrated Report 2019
S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
I
D
E
L
I
V
E
R
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
Dear stakeholder
It gives us great pleasure to share our combined overview
and reflect on the performance and strategic development
of the Sibanye-Stillwater Group over the last year. We will
keep our review succinct and to the point as substantial
detail is available in the preceding pages and further on in
the report on how we created value for all our stakeholders
during the year. We trust that you will find the vast amount
of material information contained in this Integrated Report
relevant and of interest.
OVERVIEW
Our strategic journey since the establishment of the
company in 2013 has delivered significant value to all
stakeholders as we grew from our initial endowment of
mature SA gold mines into a leading global precious metals
company that is diversified both geographically and into
different commodities. Delivery of shareholder value is
reflected by the 324% increase in the share price from a
capitalisation event adjusted level of R8.46/share on listing
on 11 February 2013 to R35.89/share on
31 December 2019 and peaking at a closing high of R49.45
per share on 19 February 2020 immediately prior to the
coronavirus (COVID-19) related downturn in global markets.
An additional R4.1 billion in dividends has also been
returned to shareholders since the independent listing of
the company, despite a temporary suspension of dividends
pursuant to our temporarily elevated gearing following the
acquisition of Stillwater in 2017.
With the transformation of the company from a South Africa
focused gold mining company into a global precious metals
company following the acquisition of Stillwater, we identified
the need for a revised corporate structure that distinguishes
our operating subsidiaries and reflects the standing of the
Group. On the initial unbundling from Gold Fields in February
2013 and listing on the Johannesburg and New York stock
exchanges as Sibanye Gold Limited, the three original gold
mines were housed directly in the holding company. We
therefore determined that establishing a newly-listed dedicated
holding company to be named Sibanye Stillwater Limited
would resolve this and better reflect the Group’s geographic
and commodity diversification. The corporate restructuring and
formal name change became effective from 24 February 2020
with the Group trading on the Johannesburg Stock Exchange
and the New York Stock Exchange under the ticker symbols
SSW and SBSW, respectively.
2019 was a seminal year for Sibanye-Stillwater, with the
acquisition of Lonmin in June 2019 marking the completion
of the fourth step in our PGM growth strategy. This achieved
full mine-to-metal exposure for our SA PGM production, with
substantial economic and strategic benefits already secured.
Anticipated integration synergies of R1.2 billion by end 2020
significantly exceed initial estimates of R730 million in annual
synergies over a three-year period. In addition, the availability
of unutilised capacity at the Marikana processing facilities has
already ensured significant additional value for all Sibanye-
Stillwater stakeholders, by providing a processing alternative
for PGM concentrate normally processed by Anglo Platinum
following the suspension of its processing operations for
approximately 80 days on 6 March 2020.
Sibanye-Stillwater Integrated Report 2019 57
Dr Vincent Maphai
Chairman
Neal Froneman
Chief Executive Officer
LEADERSHIP
POINT OF
VIEW
JOINT CHAIRMAN’S AND CEO’S REVIEW
Our strategic journey since the establishment of
the company in 2013 has delivered significant
value to all stakeholders.
LEADERSHIP POINT OF VIEW CONTINUED
The integration of the Marikana operation has proceeded in line with
expectations, with an initial three-month review of the operations
confirming the unsustainability of specific older shafts whose
mineral reserves had become exhausted. Consultations with affected
stakeholders in terms of Section 189 of the Labour Relations Act
commenced in September 2019 and were concluded in early December
2019 and the restructuring of the operations was successfully
implemented in January 2020, with closures of the old and unprofitable
shafts, accompanied by a reduction in employee numbers. Pleasingly,
there were fewer job losses than had originally been envisaged.
From the operational and financial perspectives, the year was one of
stark contrasts, with the second half significantly improved compared
to the strike-impacted first half of the year.
The position adopted during the protracted strike at our SA gold
operations was necessarily robust, with the strike finally ending in
an agreed settlement in April 2019 on the same terms that had
previously been agreed with the other recognised unions in October
2018. The outcomes assisted in achieving role clarity with factions in
organised labour that sought to secure advantage over other unions
and pursue demands that would compromise the operational and
financial sustainability of the Group. This created a context conducive
to the required rightsizing of our SA gold operations, successful
conclusion of wage negotiations at our PGM mines in the latter
part of 2019 without disruption and the subsequent restructuring
in January 2020 of the Marikana operation that we incorporated
into the Group through the Lonmin acquisition. Notably, all of this
was achieved without us losing our focus on safe production and
deleveraging of our balance sheet.
In addition to the improved operational performance for H2 2019,
precious metal prices – particularly rhodium and palladium and to
a lesser extent gold – rose sharply in the latter part of the year. In
combination with a weaker rand, significantly improved financial
performance was achieved in H2 2019 with substantially increased
adjusted EBITDA dramatically accelerating our deleveraging. Revenue
for 2019 increased by 44% year on year, from R51 billion to
R73 billion and resulted in a net profit of R432.8 million (2018: net
loss of R2.5 billion) As a result, net debt: adjusted EBITDA declined
from 2.5x at the end of 2018, to 1.25x at the end of 2019, remaining
well below the covenants with our lenders.
While our dividend policy to return at least 35% of normalised earnings
to shareholders remains unchanged, our elevated debt levels prevented
the resumption of dividends in 2019 with the application of earnings
to pay down gross debt representing our foremost priority in the short
term. While with ongoing deleveraging towards our target of 1x net
debt: adjusted EBITDA we aim to resume the distribution of dividends
in 2020, we are also cognisant of the evolving coronavirus (COVID-19)
pandemic that is severely impacting society, economies and markets
across the world. We are, in engagement with all our stakeholders
in these unprecedented challenging circumstances, participating in
constructing a concerted response to the pandemic that will minimise
the social and economic harm arising from the pandemic.
SAFETY AND WELLNESS
The safety and wellness of our people is the primary concern for the
Group and I am pleased to report that the excellent safety performance
at our SA gold operations in particular was maintained despite the
protracted strike and subsequent measured production build-up,
which is often regarded as a high risk period due to the build-up of
rock stresses at deep level mines that have lain dormant for some time.
When striking employees reported back to work, the medical fitness
58
Sibanye-Stillwater Integrated Report 2019
to work of each individual was checked and they were all taken through
the Group’s usual intensive safety training programmes.
The SA gold operations were fatality free for the whole of 2019 and on
11 March 2020, these operations achieved an unparalleled 11 million
fatal free shifts (FFS) (or 563 days) since August 2018. Our US PGM
operations have been fatality free since October 2011, in that time
achieving about 563,000 FFS – this reflects the significantly different
operating environment, which is mostly mechanised and as a result
employs significantly fewer people ( a 2,661-member workforce including
contactors) than the more conventional and labour-intensive SA operations
(a 81,793-member workforce including contactors). Our ongoing efforts
on safety are discussed in the relevant section in this report.
Regrettably, we lost six of our colleagues at our SA PGM operations
during 2019, three of which related to fall of ground incidents, two
from trackless machinery and one related to rail bound equipment.
These accidents were followed by painstaking investigations to learn
from them with the aim of ensuring that they do not recur.
OUR BUSINESS ETHOS AND ESG
Our approach to business is underpinned by our purpose of ‘Our mining
improves lives’ and guided by our vision of ‘Delivery of superior value for
all our stakeholders’. Consistent with our vision as captured succinctly
through our umdoni tree that has been discussed earlier in this report,
we have since inception recognised the relevance of all stakeholders to
our success and sustainability. As such, we have noted the declaration
by the Business Round Table signed by the CEOs of 181 major United
States companies on 19 August last year that re-defines the purpose
of corporations and endorses a commitment to all stakeholders
accompanied by a move away from shareholder primacy.
We recognise that an inclusive approach to conducting business
underpins the ability to sustainably generate superior returns and
positions us as an integral partner in the societies and economies where
we operate. Our Good Neighbor Agreement in Montana has served
well over the past 15 years to guide the formation of a harmonious and
symbiotic relationship that builds prosperity and preserves social and
environmental integrity of the district. We are working with stakeholders
in South Africa to establish similar relationships that recognise the
value of sustainable economic activity at our operations as a catalyst for
economic growth and social development.
We firmly believe that our established approach to business
complements the growing prominence of environmental, social and
governance aspects (ESG) in providing the framework within which
stakeholders adjudge the responsibility of an organisation’s conduct.
While divestment from companies with significant ESG shortcomings
has been practised for some time, we have noted the emergence
of ESG ranking systems that are beginning to represent the basis of
investment and lending decisions. Although ESG ranking systems
diverge significantly in the priorities and scope covered, we expect this
will normalise over time as the thinking matures. Demonstration of
exemplary ESG performance is rapidly becoming central to sustaining
the quality of support from all stakeholders that is needed for a
corporation to thrive on a sustainable basis.
The Board and management of Sibanye-Stillwater pay careful
consideration to Group strategy and reviews strategic planning on an
annual basis to ensure that the Group is able to sustainably deliver
on its vision and purpose. To position our company in meeting the
emerging expectations, we have expanded our strategy to include
a more specific focus on ESG. In the first instance, in addition to
honouring established governance codes for business conduct and
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE transparent reporting, we have concentrated on securing formal
accreditations under key codes for responsible mining such as the
ICMM principles, the World Gold Council’s Responsible Gold Mining
Principles and Together for Sustainability. We consider this establishes
a solid baseline on which to meet emerging stakeholder, investor
and lender criteria. This is covered in greater detail in the section
of this report where we share in greater depth how our strategy,
opportunities and risks relate to ESG.
THE ENVIRONMENT IN WHICH WE CONDUCT OUR
BUSINESS
We continually monitor the global and local context in which we
conduct our business considering the political, economic, social,
technological, legal and environmental factors that present a range
of risks and opportunities to our business. Our strategy seeks to
capitalise on opportunities for creating value for all our stakeholders
and mitigate the risks to which we are exposed with substantial detail
provided in the Delivering on our strategy and Pursuing opportunities
and managing risk sections of this integrated report.
The global emergence of COVID-19 and the impact of the drastic
measures required to combat its spread represents what we expect will
be a temporary dislocation in the world’s commodity markets. With
economic activity and trade severely disrupted while the pandemic
erupts, we are confident that the concerted and decisive responses
by national governments across the globe will contain the pandemic
allowing for a steady build up back to normalised economic activity. We
are heartened by the early signs of a resumption in China’s economic
activity that were already apparent from mid-March 2020.
During the course of the pandemic, our foremost consideration is the
risk to the well-being of our people employed at all our operations
and the surrounding communities. On 26 March 2020, an initial
21-day lockdown started in SA (which was subsequently extended to
the end of April 2020), and our SA operations were placed on care
and maintenance at the time. Approval was subsequently received
from the DMRE for limited mining and processing activities to resume
from 14 April 2020, subject to agreed protocols being implemented
to reduce COVID-19 related health and safety risks. This followed
an earlier decision to defer non-essential growth capital expenditure
at our US PGM operations in order to reduce personnel numbers in
compliance with local health and safety requirements. Furthermore,
in support of the South African President’s call for unified action,
and in solidarity with our employees and other South Africans
during this difficult time, our Board and executive management have
unanimously elected to contribute a third of their remuneration for
three months to the national Solidarity Fund.
The Group is intensively preparing for all possible scenarios and
formulating responses to mitigate the impact on employees and the
business. We are guided by the World Health Organisation, the Centre
for Disease Control and Prevention in the United States and the National
Institute for Communicable Diseases in South Africa on the measures to
prevent transmission and our preparedness should the virus affect any of
our more than 80,000 workforce, either in SA or the US.
Through our trajectory of strategic growth, the Group has become
a diversified precious metal producer with a world-leading presence
on the global PGM markets. While a temporary reduction in demand
associated with the COVID-19 pandemic has provided a degree
of relief for the emerging critical palladium and rhodium supply
shortfalls, and some demand may be permanently lost, we expect the
structural deficit in palladium and rhodium to resume as automotive
sales revert to their previous trajectories. For the foreseeable future,
while internal combustion engines and hybrid vehicles remain
dominant in the global automobile drivetrain market, we are
confident in the demand fundamentals for palladium and rhodium in
particular with historical deficits persisting. The recent announcement
that a Tri Metal Catalyst, whose development by BASF we have co-
funded, should assist in securing a progressive managed substitution
by platinum starting from 2022 that will balance the demand profile
closer to the supply mix and avert a global supply shortfall of rhodium
and palladium. While alternatives to the internal combustion engine
will, in the longer term, secure more substantial adoption in the quest
for a lower carbon future, we are confident that PGMs will continue
to fulfil a central role in a hydrogen economy supported by renewable
energy and fuel cells as key technologies.
We also retain confidence in the resilience of gold as a uniquely
durable asset class during times of global economic turbulence
and particularly in an economic policy climate characterised by
stimulus and low yields on the financial markets. While our company
is exceptionally well positioned through our current commodity
and geography exposure, expanding our gold presence onto an
international footing represents a next logical step of strategic growth
to enhance our diversification and positioning.
FINANCIAL POSITION OF THE GROUP
As a result of the strong operating and financial performance
achieved in H2 2019, progress on deleveraging the balance sheet has
accelerated. Proforma net debt: adjusted EBITDA (ND:adjusted EBITDA)
reduced from 2.5x at 30 June 2019 to 1.25x at year end, well below
existing debt covenants and our 1.8x target for the 2019 year-end. In
order to make the deleveraging sustainable even under less constructive
scenarios for commodity prices and earnings, we are prioritising the
application of free cash generated to reducing debt. The Board will
assess our position to resume cash dividends during 2020 based on
continued deleveraging progress and considering the implications of
COVID-19 for our business. Our CFO, Charl Keyter covers more about
the financial performance in his review in pages to come.
NEW CHAIRMAN AND DIRECTORS
At the end of May 2019, Sello Moloko announced that he would be
stepping down at the end of September 2019 as Sibanye-Stillwater’s
non-executive chairman. Mr Moloko has chaired the company with
aplomb through its strategic growth from a South African gold
producer into a major international multi-commodity precious metal
produced. We acknowledge his wise leadership that has been greatly
appreciated. He was succeeded on 1 October 2019 by Dr Vincent
Maphai, who brings the knowledge and experience of a long and
distinguished career in private business, academia and the public
sector to the company’s leadership.
We would also like to express our appreciation for the wisdom and
guidance provided since Sibanye-Stillwater’s inception by Barry Davison,
who stepped down from the Board in May 2019, and we welcome
Harry Kenyon-Slaney who was appointed to the Board in January 2019.
We also welcome Elaine Dorward-King who joined the Board at the end
of March 2020 as an independent non-executive director, and thank
Wang Bin and Lu George Jiongjie who served as non-independent,
non-executive directors from January 2020 to end March 2020.
Vincent Maphai
Chairman
Neal Froneman
CEO
22 April 2020
Sibanye-Stillwater Integrated Report 2019 59
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CHIEF FINANCIAL OFFICER’S REPORT
OVERVIEW 2019
There was a stark difference in the financial performance of the Group
between the first half and the second half of the year. The financial
results in the first half of 2019 were severely impacted by the strike at
the SA gold operations, which began in November 2018 as well as the
change in the processing agreement at the Rustenburg PGM operations
from purchase of concentrate agreement (POC) to a toll processing
arrangement, which resulted in a build-up of processing inventory and
a deferral of sales for an extended period. In contrast, the financial
results for the second half of 2019, were boosted by the inclusion of
the Marikana operations (formerly Lonmin Plc) following its acquisition
in June 2019, rising commodity prices and depreciation of the rand
against the US dollar.
The wage related strike at our SA gold operations, which began
in November 2018 was concluded on 17 April 2019. The strike
was followed by an extended safe production buildup due to the
reintegration of the workforce that included medical assessments,
retraining and the making safe of underground working places,
some of which had been out of operation for five months. Gold
production at the SA gold operations normalised during the fourth
quarter of 2019. The change from POC to toll processing agreement
at our Rustenburg PGM operations resulted in no revenue being
recognised, on platinum, palladium, rhodium and gold, for the first
three to four months (dependent on the metal) of 2019. Previously
revenue could be recognised when the concentrate was delivered
and sold, however, following the change to a tolling arrangement,
sales are now recognised only after the metal is refined, returned
and sold to a third party.
During 2019, the SA gold operations were restructured through a
S189 consultation process as a consequence of ongoing financial
losses experienced at the Beatrix and Driefontein mines. This process
was concluded on 5 June 2019. The SA PGM operations wage
negotiations, and the downsizing of the Marikana operations, which
was concluded on 16 January 2020 without incident, illustrated the
result of our firm approach and well-timed fundraising initiatives
during the gold strike.
The average PGM basket price for the second half of the year
improved 17% and 21%, respectively for our US PGM operations
and SA PGM operations. At our SA gold operations, the average
gold price increased by 9% compared to the first half of 2019. The
SA and US PGM basket price increase was mainly due to increased
palladium and rhodium prices. During the second half of 2019, the
3% weakening of the SA rand against the US dollar also contributed
to increased revenue from our South African assets.
Charl Keyter
Chief Financial Officer
HIGHLIGHTS
44%
increase in revenue to R73 billion (US$5 billion) and
R433 million (US$30 million) profit for 2019 (2018:
loss of R2.5 billion or US$191 million)
Business significantly de-risked – net debt: adjusted
EBITDA 1 reduced to 1.25x (from 2.5x at end June
2019), well below debt covenants
Substantial increase in both the SA PGM and US PGM
operations’ adjusted EBITDA 2. SA gold operations
affected by strike in the first half of 2019
R5.5bn
of the R6bn revolving credit facility (RCF)
refinanced in October 2019
Lonmin transaction completed in June 2019
1 Net debt: adjusted EBITDA includes the Marikana operations seven-month
actual consolidated EBITDA, which was extrapolated to a full 12-month
period as allowed in terms of the debt covenant calculation rules
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 please refer to the consolidated financial statements, note
26.9: capital management, available on
https://www.sibanyestillwater.com/news-investors/. The 1.25x includes
Marikana for 12 months as per the covenant definition
“There was a stark difference in the
financial performance of the Group
between the first half and the second
half of the year.”
60
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE The Group’s adjusted earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) for 2019 was R14,956 million, compared
to R8,369 million in 2018 representing a 79% increase year-on-year. The adjusted EBITDA from the US PGM operations increased by 76%
to R7,291 million, representing a 49% (2018: 50%) contribution to Group adjusted EBITDA, mainly due to the increased PGM basket price
complemented by comparable PGM production quantities year-on-year. The contribution from the SA PGM operations has also increased
substantially, due to the improved SA rand PGM basket price, a sustained operational performance together with the inclusion of the Marikana
operations for seven months since acquisition in June 2019.
In 2019, the SA PGM operations contributed 59%, or R8,796 million of Group adjusted EBITDA, up from 34% in 2018, with the Marikana
operations contributing 16% in 2019. Despite a 21% increase in the average SA rand gold price received year-on-year, the impact of the strike
and other unanticipated operational disruptions, caused production from the SA gold operations excluding DRDGOLD, to decrease by 11,329kg
(364,236oz), resulting in adjusted EBITDA from the SA gold operations declining by 171% to an adjusted EBITDA loss of R969 million. The SA
gold operations excluding DRDGOLD contributed an adjusted EBITDA loss in 2019 compared with a positive 16% contribution in 2018. DRDGOLD
contributed 6% (2018: less than 1%) to Group adjusted EBITDA mainly due to their inclusion for the full year (2018: 5 months) and the increased
production following the commissioning of Far West Gold Recoveries project in April 2019.
Adjusted EBITDA 2019 vs 2018 (R million)
8,796
7,291
4,152
10,000
8,000
6,000
4,000
2,000
(2,000)
US PGM
SA PGM
2019
2018
2,882
1,362
(969)
SA gold
(162)
(27)
Group corporate
Note: The graph above compares the adjusted EBITDA for 2019 against 2018 for the US PGM, SA PGM, SA gold operations and Group corporate.
The liquidity of the Group was bolstered through the completion of
a R1.7 billion (US$120 million) share placing and the conclusion of
a forward gold sale arrangement to raise approximately R1.8 billion
(US$125 million) on 10 April and 11 April 2019, respectively. The
funding was raised to enhance balance sheet flexibility and ensure
that the Group was appropriately positioned and sufficiently robust to
endure any exogenous challenges. Shortly after the transactions were
announced, AMCU’s strike at the SA gold operations was successfully
resolved, validating the pre-emptive strategic decision to raise the
capital. The liquidity of the Group was further maintained through
the refinancing, on similar terms, of the three-year R6.0 billion
revolving credit facility (RCF) in October 2019. The new RCF has an
initial facility value of R5.5 billion and includes a R2 billion accordion
option that allows for a future upsize to R7.5 billion, while the three-
year tenor can be extended by two further one-year extensions. Six
of the eight US$ RCF lenders (i.e. US$450 million of the US$600
million facility) agreed to the first one-year extension option under
the US$ RCF. The forward gold sale arrangement of R1.8 billion
(US$125 million) was settled through gold delivery during 2019. On
21 October 2019, Sibanye-Stillwater concluded a forward gold sale
arrangement where the Group received a cash prepayment of
R1.1 billion in exchange for the future delivery of 8,482 ounces
(263.8 kilograms) of gold every two weeks from 10 July 2020 to
16 October 2020 subject to an initial reference price of R17,371/oz
comprising 80% of the prevailing price on execution date.
Adjusted debt maturity ladder as at 31 December 2019 (US$ million)
2,000
1,500
1,000
500
0
348
178
306
102
2021
2022
339
178
2024
2025
623
408
2023
US$600m dollar RCF
US$354m 6.125% 2022 bonds
R5.5bn ZAR RCF
US$384m 1.87% 2023 convertible
US$347m 7.125% 2025 bonds
The above graph illustrates the adjusted debt maturity ladder (i.e. the
capital repayment profile) as at 31 December 2019. Adjusted debt values
are calculated in accordance with the RCF covenant calculations, and
therefore exclude non-recourse debt and capitalised operating leases. Six
of the eight USD RCF lenders (i.e. 75%) have approved the first one year
extension option under the facility, hence 25% of the facility utilisation
(i.e. US$102 million) matures in April 2021 and 75% of the facility
utilisation (US$306 million) matures in April 2022. In April 2020 all of the
USD RCF lenders will have the option to consider extending the facility
maturity to April 2022. The ZAR RCF similarly has two one-year extension
options that would be considered by the lenders in due course, and
could ultimately extend the November 2022 maturity date to November
2024. The June 2022 high yield bonds (US$354 million nominal value and
US$348 million book value) are therefore expected to be the next debt
maturity in June 2022.
Sibanye-Stillwater Integrated Report 2019 61
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
P
I
H
S
R
E
D
A
E
L
E
T
A
R
E
P
O
E
W
W
O
H
I
S
U
S
E
V
R
D
T
A
H
W
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
CHIEF FINANCIAL OFFICER’S REPORT CONTINUED
The cost performance at the SA gold operations (excluding DRDGOLD)
was severely impacted by lost production units due to the prolonged
strike and the measured post-strike return to normalised production,
with the sharp decrease in production resulting in an increase in AISC
of R766,569/kg in 2019 compared to R559,799/kg in 2018. Including
DRDGOLD, AISC was R717,966/kg.
Capital expenditure increased from R7,081 million in 2018 to
R7,706 million in 2019. Capital expenditure at the US PGM
operations for 2019 was US$235 million (R3,393 million) of which
US$141 million (R2,035 million) was spent on the Blitz project and
the Fill the Mill project at East Boulder. This compares to capital
expenditure of US$214 million (R2,833 million) in 2018 of which
US$119 million (R1,574 million) was spent on the Blitz project.
Capital expenditure at the SA PGM operations increased from
R1,000 million in 2018 to R2,248 million in 2019, mainly due to
the inclusion of the Marikana operations, since June 2019. Capital
expenditure at the Marikana operations amounted to R1,189 million
for the period since acquisition. Capital expenditure at the SA gold
operations (excluding DRDGOLD) declined from R2,930 million in
2018 to R1,984 million due to cash flow preservation during the
strike, followed by production normalisation after the strike ended.
Capital expenditure, excluding DRDGOLD, for the first half of 2019
was R388 million compared to R1,596 million in the second half of
2019. DRDGOLD’s capital expenditure, included in the consolidated
results, was R82 million for 2019.
From an operational perspective, the average US dollar basket
price received at the US PGM operations was 39% higher at
US$1,403/2Eoz compared to US$1,007/2Eoz in 2018. Total 2E
PGM production at 593,974oz was flat compared to 2018, due to
geotechnical constraints, mainly at the Stillwater operation and the
Blitz project. The average SA rand basket price received at the SA
PGM operations was 44% higher at R19,994/4Eoz in 2019, compared
with R13,838/4Eoz in 2018. The SA PGM operations, including the
Marikana operations from June 2019, performed strongly with 4E
PGM production of 1,608,332oz in 2019, compared to 1,175,672oz
in 2018. The SA rand gold price received for 2019 was 21% higher at
R648,662/kg compared to R535,929/kg in 2018. The impact of the
prolonged strike and the cessation of production at unprofitable shafts
at the Beatrix and Driefontein operations caused production from the
SA gold operations, excluding DRDGOLD to decrease by 11,329kg
(364,236oz) to 23,427kg (753,194oz).
The all-in sustaining costs (AISC) at the US PGM operations increased
from US$677/2Eoz in 2018 to US$784/2Eoz in 2019 mainly due to
additional costs associated with the geotechnical issues. Additionally,
every US$100/2Eoz increase in the basket price results in a US$5/2Eoz
royalty increase in AISC, adding approximately US$21/2Eoz to the
2019 AISC/2Eoz compared to 2018.
Cost performance at the SA PGM operations was mainly impacted by
the change from POC to toll smelting and refining at the Rustenburg
PGM operations. The AISC per 4Eoz at the SA PGM segment for 2019,
excluding the Marikana operations, was R13,372/4Eoz compared to
R10,417/4Eoz in 2018.
Purchase of concentrate (illustrative)
200
150
100
50
0
AISC
200
150
100
1x
1.5x
2x
Margin
Revenue
Toll refining (illustrative)
200
150
100
50
0
AISC
200
150
100
1x
1.5x
2x
Toll refining cost
Margin
Revenue
Note: The graphs above illustrate AISC, margin and revenue under POC
and toll refining under various illustrative scenarios.
62
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
I
D
E
L
I
V
E
R
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
A shaft headgear at the SA gold Driefontein operations
Sibanye-Stillwater Integrated Report 2019 63
CHIEF FINANCIAL OFFICER’S REPORT CONTINUED
Restructuring costs
The Group continually reviews and assesses
the operating and financial performance of its
assets. During 2019, the Group restructured
its SA gold operations (Beatrix and
Driefontein) and the newly acquired Marikana
operations and incurred restructuring costs of
R357 million and R867 million, respectively.
The restructure was aimed at rationalising
overheads, and creating synergies and
efficiencies, all of which is required to restore
profitability and ensure the sustainability
of the remaining shafts at the SA gold
operations and the Marikana operations.
Royalties, mining and income tax
Royalty tax increased from R213 million in
2018 to R431 million in 2019 driven by higher
royalties due to the increased profitability
of the SA PGM operations, with current
tax increasing from R95 million in 2018
to R1,849 million. The deferred tax charge
of R989 million for 2018 compared with a
deferred tax credit of R3,582 million in 2019
was mainly due to the losses at the SA gold
operations and contract changes at the US
PGM operations which resulted in a shift of
its state tax exposure from New Jersey.
Consolidated income statement for the year ended 31 December 2019
Figures in million – SA rand
Revenue
Cost of sales
2019
2018
72,925.4
50,656.4
(63,314.5) (48,129.0)
Cost of sales, before amortisation and depreciation
(56,100.4) (41,515.2)
Amortisation and depreciation
Interest income
Finance expense
Share-based payments
(Loss)/gain 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
Gain on acquisition
Loss before royalties, carbon tax and tax
Royalties
Carbon tax
Loss before tax
Mining and income tax
Profit/(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
(7,214.1)
(6,613.8)
560.4
482.1
(3,302.5)
(3,134.7)
(363.3)
(299.4)
(6,015.1)
1,704.1
325.5
1,169.1
721.0
484.2
344.2
310.2
(2,310.4)
(1,015.4)
76.6
60.2
(86.0)
(3,041.4)
-
230.0
39.6
(15.4)
(1,252.4)
(142.8)
(447.8)
(402.5)
1,103.0
-
(856.3)
(1,224.3)
(431.0)
(212.6)
(12.9)
-
(1,300.2)
(1,436.9)
1,733.0
(1,083.8)
432.8
(2,520.7)
62.1
(2,499.6)
370.7
(21.1)
2
2
(110.0)
(110.0)
Gain on acquisition – Lonmin
A gain on acquisition of R1,103 million following the acquisition of Lonmin, was recognised in 2019 and is attributable to the acquisition being
attractively priced, and is consistent with the statement by the boards of Sibanye-Stillwater and Lonmin, that the purchase price reflected the recovery
in PGM prices at the time of the increased offer, balanced against the fact that Lonmin, pre-acquisition, was financially constrained and unable to fund
the significant investment required to sustain its business and associated employment. The gain was recognised as follows:
Figures in millions – SA rand
Fair value of consideration
Fair value of identifiable net assets acquired
Non-controlling interest, based on the proportionate interest in the recognised amounts of assets and liabilities
Gain on acquisition
SA rand
4,306.6
(5,656.6)
247.0
(1,103.0)
64
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Revenue
Figures in millions – SA rand
2019
2018 % change
Total
US PGM operations
SA PGM operations (excluding Marikana
operations)
72,925.4
50,656.4
26,864.5
15,872.8
16,390.5
15,153.6
Marikana operations
11,187.9
-
SA gold operations (excluding DRDGOLD)
15,023.2
18,609.2
DRDGOLD
Group corporate
3,621.0
1,047.5
(161.7)
(26.7)
44
69
8
100
(19)
246
506
The Group’s revenue for 2019 of R72,925 million was 44% higher than 2018. Revenue from
the US PGM operations increased by 69% mainly due to a 39% increase in the average US
dollar basket price received of US$1,403/2Eoz and a 9% weakening of the average SA rand
exchange rate from R13.24/US$ to R14.46/US$. SA PGM revenue, including the Marikana
operations, increased by 82%. Excluding the Marikana operations, SA PGM revenue increased
8% due to a 44% higher SA rand basket price received of R19,994/4Eoz, offset by the change
from POC to toll smelting and refining at our Rustenburg PGM operations that required a
build-up in inventory with no revenue being recognised on platinum, palladium, rhodium and
gold for between three and four months. The Marikana operations contributed R11,188 million
in revenue for the seven months since acquisition. Revenue from the SA gold operations,
excluding DRDGOLD reduced by 19% due to 33% lower gold production as a result of the
AMCU strike, the post-strike production normalisation and the closure of unprofitable shafts.
The average SA rand gold price in 2019 was 21% higher at R648,662/kg compared to
R535,929/kg in 2018. DRDGOLD’s revenue contribution for 2019 was R3,621 million compared
to R1,048 million in 2018 due to their inclusion for a full 12-month period in 2019 (2018:
five months) and the increased production following the commissioning of Far West Gold
Recoveries project in April 2019.
Cost of sales, before amortisation and depreciation
Figures in millions – SA rand
2019
2018 % change
Total
US PGM operations
SA PGM operations (excluding Marikana
operations)
Marikana operations
SA gold operations (excluding DRD)
DRDGOLD
56,100.4
41,515.2
19,569.4
11,720.9
9,756.8
12,096.0
8,439.9
-
15,598.0
16,678.3
2,736.3
1,020.0
35
67
(19)
100
(6)
168
Cost of sales before amortisation and depreciation increased by 35%. Costs at the
US PGM operations increased by 67% in SA rand terms due to inflationary increases, an
increase in recycling volumes and the weaker average R/US$ exchange rate. Excluding
the recycling costs of US$966 million (R13,969 million), costs at the US PGM operations
increased from US$342 million (R4,524 million) to US$387 million (5,601 million), mainly
due to inflationary increases, increased royalties following from the higher PGM prices,
labour costs due to budgeted additional hires, mobile plant maintenance costs and
contractors’ costs to recoup lost production mainly at the Stillwater Mine. The decrease
of 19% at the SA PGM operations (excluding Marikana operations) was mainly due to the
allocation of costs to PGM in process associated with the change from POC to toll smelting
and refining at our Rustenburg operations. The 6% decrease at the SA gold operations
(excluding DRDGOLD) was the direct result of the strike action plans implemented to limit the
impact of the AMCU strikes, the no-work-no-pay principle that applied to striking workers’
salaries and wages and the closure of unprofitable shafts, partially offset by above inflation
increases on power and labour. DRDGOLD’s cost for 2019 was R2,736 million compared to
R1,020 million in 2018 due to its inclusion for a full twelve-month period in 2019.
Net finance expense
Interest income increased from R482 million to
R560 million due to higher average cash balances
during 2019.
Finance expenses increased from R3,135 million
in 2018 to R3,303 million in 2019 mainly due to
the unwinding of the interest associated with
the streaming transactions and an increase in
the accretion of interest on the environmental
rehabilitation liability following the acquisition of
the Marikana operations. Interest on borrowings
reduced from R1,573 million in 2018 to
R1,445 million in 2019 following the repurchase
of 2022 and 2025 Notes on 19 September 2018 to
the value of US$345 million.
Loss on financial instruments
The loss on financial instruments of
R6,015 million was mainly due to a fair value loss
of R3,912 recognised on the US$ convertible bond
derivative financial instrument, with the fair value
of the convertible bond driven significantly higher
by the significant increase in the Sibanye-Stillwater
share price during 2019. In addition, due to higher
PGM prices, revised cash flows at the Rustenburg
operations resulted in a loss of R724 million and
R1,218 million, respectively on the purchase price
deferred payment and dividend expectation for our
BEE partners.
Gain on foreign exchange differences
The gain on foreign exchange differences of
R326 million related to foreign exchange gains on
the convertible bond and the derivative financial
instrument of R114 million and R176 million
respectively, resulting from the stronger SA rand
at year end.
Impairments
Impairments in 2019 mainly related to the
impairment of goodwill that arose on the
acquisition of Qinisele Resources that cannot
be attributed to any current Sibanye-Stillwater
operating cash generating units.
Transaction costs
The transaction costs of R448 million in 2019
included advisory and legal fees of R284 million
(2018: R117 million) relating to the Lonmin acquisition,
streaming transaction costs of R53 million, advisory
and legal fees of R32 million related to the Sibanye
Gold Limited restructuring, dissenting shareholder
liability legal costs of R20 million and platinum
jewellery membership costs of R18 million.
Sibanye-Stillwater Integrated Report 2019 65
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CHIEF FINANCIAL OFFICER’S REPORT CONTINUED
Consolidated statement of financial position as at 31 December 2019
14,956
Figures in million – SA rand
2019
2018
Adjusted EBITDA 2018 vs 2019 (R million)
35, 0000
30, 0000
25, 0000
20, 0000
15,000
10,000
5,000
8,369
2,448
3,466
3,139
(3,150)
818
(135)
0
2018
USPGM
SA PGM
Streaming
transaction
Note: The graph above shows the change in adjusted
EBITDA per operation from 2018 to 2019.
DRDGOLD
Marikana
SA gold
Assets
Non-current assets
Property, plant and equipment
Right-of-use asset
Goodwill
Equity-accounted investments
2019
Other investments
Environmental rehabilitation obligation funds
74,908.1
57,480.2
69,727.7
54,558.2
360.9
6,854.9
4,038.8
598.7
4,602.2
683.5
288.9
26,163.7
15,503.4
4,635.0
51.2
355.1
-
6,889.6
3,733.9
156.0
3,998.7
314.4
76.9
15,195.3
5,294.8
6,833.0
35.2
483.2
Other receivables
Deferred tax assets
Current assets
Inventories
Trade and other receivables
Other receivables
Tax receivable
Cash and cash equivalents
5,619.0
2,549.1
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
Lease liabilities
Environmental rehabilitation obligation and
other provisions
101,071.8
84,923.0
29,670.6
23,788.4
40,662.0
34,667.0
4,442.3
4,617.2
(15,433.7)
(15,495.8)
1,467.7
936.0
31,138.3
24,724.4
55,606.7
45,566.0
23,697.9
18,316.5
4,144.9
408.9
272.8
–
8,714.8
6,294.2
Post-retirement healthcare obligation
–
5.6
Occupational healthcare obligation
1,133.4
1,164.2
Share-based payment obligations
Other payables
Deferred revenue
Tax and royalties payable
Deferred tax liabilities
Current liabilities
Borrowings
Lease liabilities
1,343.0
168.9
2,687.5
2,529.2
6,896.5
6,525.3
59.1
–
6,656.8
10,153.2
14,326.8
14,632.6
38.3
6,188.2
110.0
–
Occupational healthcare obligation
148.7
109.9
Share-based payment obligations
82.1
56.8
Trade and other payables
Other payables
Deferred revenue
Tax and royalties payable
11,465.9
7,856.3
761.4
303.3
1,270.6
30.1
449.8
88.0
Total equity and liabilities
101,071.8
84,923.0
Adjusted earnings before interest, tax,
depreciation and amortisation (EBITDA)
Figures in
millions – SA rand
Total
US PGM operations
SA PGM operations
(excluding Marikana
operations)
Marikana operations
SA gold operations
(excluding DRD)
DRDGOLD
Group corporate
2019
14,956.0
7,290.9
2018
8,369.4
4,151.9
%
change
79
76
6,348.1
2,448.1
2,881.8
–
(1,823.4)
854.0
(161.7)
1,326.2
36.2
(26.7)
120
100
(237)
2,259
506
Adjusted EBITDA of R14,956 million in 2019, increased
79% from R8,369 million, due to the increase in
commodity prices, specifically palladium and rhodium, the
weakening of the SA rand, the inclusion of the Marikana
operations for seven months (SA PGM operations),
partially offset by reduced sales at the Rustenburg
operation as a result of the change from POC to a
toll arrangement, and the negative adjusted EBITDA
contribution from the SA gold operations due to the wage
strike and post-strike production build-up. Included in
adjusted EBITDA is care and maintenance costs at the SA
gold operations and SA PGM operations of R594 million
and R172 million respectively, compared with R564 million
and R12 million in 2018. Other costs included in adjusted
EBITDA are corporate and social expenditure and non-
production royalties of R149 million and
R40 million, respectively.
The adjusted EBITDA margin for the US PGM
underground operations, increased from 46% in 2018 to
55% in 2019, primarily due to surging dollar palladium
and rhodium prices. The adjusted EBITDA margin for the
SA PGM operations increased year-on-year from 19%
to 32% again, aided by the increase in palladium and
rhodium prices and the weakening of the R/US$ exchange
rate. The SA gold adjusted EBITDA margin declined
from 7% in 2018 to negative 5% in 2019 following the
operational disruptions.
66
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Gearing
Figures in millions – SA rand
Borrowings 1
Cash and cash equivalents 2
Net debt 3
Adjusted EBITDA
Net debt to adjusted EBITDA (ratio) 4
2019
2018
26,550.7
23,768.5
5,586.3
2,499.4
20,964.4
21,269.1
14,956.0
8,369.4
1.4
2.5
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
4 Adjusted EBITDA includes the Marikana operations seven-month actual consolidated EBITDA, which was not extrapolated for the purpose of
this disclosure to a full 12-month period as allowed in terms of the debt covenant calculation rules
The net debt to adjusted EBITDA history can be summarised as
follows:
Net debt to
adjusted EBITDA
2019
2018
2017
2016
2015
1.40
2.54
2.56
0.60
0.21
During 2019 revenue and adjusted EBITDA was adversely
impacted by the strike at the SA gold operations and change
from POC to toll refining at the Rustenburg PGM operations. As a
result, elevated net debt to adjusted EBITDA ratios were reported
during 2019. However, the rapid recovery should continue during
2020 as the poor Q1 2019 adjusted EBITDA rolls out of the
trailing 12-month calculation, reported as 1.25x at 31 December
2019, as allowed by the debt covenant calculation rules.
EXTERNAL AUDIT ROTATION
The audit committee, after following a comprehensive formal
tender process during 2018, as well as due process as set
out in paragraph 3.84(g)(iii) of the JSE Listings Requirements,
recommended the appointment of Ernst & Young Inc. as the
Group’s external auditor with Mr Lance Ian Neame Tomlinson
as the designated lead audit partner. Shareholders ratified the
appointment of Ernst & Young Inc during the Annual General
Meeting held in May 2019.
FOCUS AREAS – 2020
The continued deleveraging of the company will remain the
primary focus for 2020, through earnings growth, cash flow
generation and debt reduction. Based on the leverage trajectory,
and the internal target of a net debt to adjusted EBITDA ratio of
1 times, we expected to resume dividends to shareholders during
the course of 2020, but the recent impact of COVID-19 will
adversely impact the outlook for 2020.
The strong performance of commodity prices, more specifically
palladium, rhodium and gold, and the weakening of the SA rand
against the US dollar, which started in 2018 and continued into
early 2020, should have further assisted with earnings growth
and cash flow generation, but were adversely affected in US
dollar terms in March due to COVID-19.
Commodity
prices
Average 2019
Spot prices as at
31 March 2020
%
change
Gold price/kg
R648,662
R923,486
SA PGM average
basket price/4Eoz
US PGM average
basket price/2Eoz
R19,994
R37,017
US$1,403
US$1,934
42
85
38
The focus on successful integration of the Marikana operations
and realising the estimated R730 million cost synergies identified
during the due diligence will remain a further strategic priority.
Above inflation cost pressures, a relentless focus on cost saving
and cost containment will be targeted through Project 1, which
was officially launched at the start of 2020. This project focuses
on estimated further cost reductions of R1 billion across the
combined supply chain area of the SA gold operations and SA
PGM operations over a period of 12 to 18 months.
ACKNOWLEDGEMENT
I would like to express my sincere appreciation to the finance
teams across the Group for their unwavering support, ongoing
commitment and dedication during 2019. The Group has been
able to mitigate some of the adverse consequences relating to
the volatile global environment in which we operate, through
proactively managing costs, capital, working capital and liquidity,
which have contributed to the strengthening of the balance
sheet. I look forward to working with the finance team in 2020 as
we advance the Group’s strategic objectives.
The October 2020 call option on the convertible bonds could
allow for the settlement or conversion of these instruments,
Charl Keyter
Chief Financial Officer
which could further improve capital structure and leverage ratios.
22 April 2020
Sibanye-Stillwater Integrated Report 2019 67
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SOCIAL, ETHICS AND SUSTAINABILITY COMMITTEE:
CHAIRMAN’S REPORT
the baseline line study conducted by the Commission on Gender
Equality on the gender policies and practices of a selected number
of mining companies, which included Sibanye-Stillwater. While the
report highlighted certain historical gender disparities in salaries for
certain positions, we conducted our own employment equity barriers
audit on women in mining, pay and grade inequality whose findings
and recommendations were implemented in 2019. The Committee is
pleased to report that Sibanye-Stillwater has developed and maintains
several employment equity plans in accordance with the Employment
Equity Act and other applicable legislation and policies.
To ensure that the Code of Ethics becomes a living document and
foundation on which Sibanye-Stillwater is built, the Committee
approved several recommendations aimed at ensuring that our
business is conducted in an ethical, fair and responsible way.
The Code of Ethics was rolled out through a variety of initiatives
including booklets, posters and electronic communication and it has
been integrated into training manuals at all Company operations. The
Committee will continue to monitor compliance and integration of
the Code of Ethics into the business in 2020.
DISCHARGING OUR DUTIES
The Committee is pleased to report to all stakeholders that it has
fulfilled its mandate as prescribed by the Companies Regulations to
the Companies Act and that there are no instances of material non-
compliance to disclose.
The Committee believes that Sibanye-Stillwater has complied
with its statutory duties, save for some outstanding issues being
addressed by management relating to the acquisition of Lonmin and
certain backlogs in Lonmin’s social and labour plans. These will be
monitored closely in 2020. In addition, the Committee will focus on
monitoring Sibanye-Stillwater’s compliance with the requirements of
the international bodies we joined in 2019, and the commitments we
made. The integration of good global ESG practices into our mining
activities at all our operations will also be a priority.
Jerry Vilakazi
Chairman: Social, Ethics and Sustainability Committee
22 April 2020
Jerry Vilakazi
Chairman: Social, Ethics and Sustainability Committee
The Sibanye-Stillwater Social, Ethics and Sustainability Committee
(the Committee) is a statutory committee which assists the Board
in guiding and monitoring the Group’s performance in relation to
corporate citizenship, environmental, social and governance (ESG)
factors, Sustainable Development Goals (SDGs), sustainability and
ethics. In the last year, the Committee took a decision after reviewing
its legal mandate to change its name from the Social and Ethics
Committee to the Social, Ethics and Sustainability Committee. The
Committee and the Board approved the name change and the
amended Terms of Reference.
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 our website at
about-us/governance/. This report is presented in accordance with the
requirements of the
Companies Act.
www.sibanyestillwater.com/
The Committee supported the Company in:
• joining the International Council on Mining and Metals (ICMM)
• becoming a signatory to the International Cyanide Management
Code for the Manufacture, Transport and Use of Cyanide in the
Production of Gold (The Cyanide Code)
• adopting the World Gold Council Responsible Gold Mining
Principles with a view to being externally assured
• obtaining external assurance of the Together for Sustainability
(TfS) initiative for the Marikana Operations
• adopting the London Platinum and Palladium Market responsible
sourcing principles with a view to being externally assured
In 2019, the Committee focused on monitoring our adherence to
the Code of Ethics, and compliance with and improvements to the
gender policy at all levels in the organisation. Regarding gender
policies and practices of particular interest to the Committee was
68
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
I
D
E
L
I
V
E
R
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
Sibanye-Stillwater supports education
Sibanye-Stillwater Integrated Report 2019 69
CORPORATE GOVERNANCE
CHAIRMAN’S STATEMENT
Dear stakeholder
It is a great privilege to serve the Sibanye-Stillwater Board and to present to you the Group’s Corporate Governance Report
for the financial year ended 31 December 2019. Sibanye-Stillwater’s most significant achievements over the past year include
overseeing the re-establishment and improvement of our safety metrics, managing a necessary de-leveraging, successful growth by
acquisitions and a new Board appointment, which included succession planning of the Chair of the Board.
The Sibanye-Stillwater Board strives to provide effective, responsible and ethical leadership and is committed to ensuring that
sound standards of corporate governance guide all that we do. Together with our CARES values, these principles are applied to
all decisions and their related execution within our governance framework, which is in turn underpinned by our policies, Code
of Ethics and procedures. Related Board roles and responsibilities are clearly defined, and performance is reviewed regularly. The
Board continuously reviews and develops the governance structures to ensure sound decision making.
In addition, the Board exercises independence in its decision-making while considering the interests of all stakeholders. The Board
is responsible for setting and overseeing implementation of the Group’s strategy, its management and performance.
Sibanye-Stillwater subscribes to the principles of the King IV Report on Corporate Governance for South Africa, 2016 (King IV), the
Companies Act, 2008 (as amended), the JSE Listings Requirements, the NYSE Listed Company Manual and other relevant laws as
well as the principles of the International Council on Mining and Metals (ICMM), World Gold Council, the International Platinum
Group Metals Association (IPA) and FTSE 4Good, all of whose principles guide the Board in decision-making.
Vincent T Maphai
Chairman of the Board
GOVERNANCE AND RESPONSIBLE, ETHICAL LEADERSHIP
RESPONSIBLE CORPORATE CITIZENSHIP
The Board ensures that Sibanye-Stillwater is a responsible corporate citizen and subscribes to the following principles:
• fairness and integrity in all business dealings that are free of bribery and corruption
• respect for the human rights and dignity of others
• acceptance of diverse cultures, religions, race, disability, gender and sexual orientation
• honesty and accountability
The Board and its committees consider the full range of issues that potentially influence the sustainability of the business and our ability
to create value over the short, medium and long term. Simultaneously we consider the social, economic, and natural environments in
which Sibanye-Stillwater operates. The Board’s Social, Ethics and Sustainability Committee has oversight of the Group’s activities relating
to responsible corporate citizenship. In all decision-making, the Board considers the impact of Sibanye-Stillwater’s operations on society
and the environment, as well as its financial impact on communities and employees. During 2019, the Group appointed a dedicated
sub-committee of the Group Executive Committee which is primarily responsible for the environmental, social and governance (ESG)
performance and reporting of the organisation. This ESG committee ensures that the Group honours the ESG performance expectations
determined through the Board’s Social, Ethics and Sustainability Committee. In addition, it oversees the principles enshrined in the
responsible mining and responsible business codes to which the Group subscribes.
70
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE The impact of the Group on the economies of South Africa and the state of Montana in the US, as well as on our host and labour-
sending communities, means that responsibilities arising from our corporate citizenship become hugely 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 all our stakeholders. Our performance in these areas is detailed in the relevant sections of this report as follows:
Workplace
Economy
Society
Environment
• Employee safety, health and well-
• Profitable, safe production of
• Investment in community
• Managing our environmental
being is a priority
• Focus on addressing financial
precious metals that are sold to
generate revenue
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
see Social
For further detail
upliftment and community
development
indebtedness
• Job creation
• Improving diversity
• Sharing value created with key
• Employee development and
stakeholder groups:
training
see
For further detail
Empowering our workforce;
Commitment towards safe
production; and Health and well-
being and occupational hygiene
– 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
see How we
For further detail
create value; CFO’s report; and
Empowering our workforce
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
our environmental impact
see Minimising
Sibanye-Stillwater’s SA gold operations subscribed to the World Gold Council’s ‘Conflict Free Gold Standard’ since its introduction
in 2012. This standard ensures that our mining operations do not cause, support or benefit unlawful armed conflict or contribute to
serious human rights abuses or breaches of international humanitarian law.
During 2019, 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 increased their focus on the ESG credentials of primary producers from January 2019 as part of mandatory
requirements to supply into LBMA-accredited good delivery refineries.
We give ongoing attention to our ESG performance. Periodic gap analyses help us to identify areas requiring improvement in
performance and assurance. We need to formalise Group-wide management systems more than we have at the moment. These should
be geared to the requirements of mine operators and span commodities and jurisdictions. This is 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 of the ICMM as well as those of the United
Nations Global Compact. During 2019, we began the formal process of becoming a member of the ICMM. Based on external assurance
of our conformance to the ICMM principles and a review by the ICMM’s expert review panel, our Group membership of the ICMM was
approved in February 2020. We also take cognisance of the targets set by the United Nations Sustainable Development Goals (SDGs).
Sibanye-Stillwater Integrated Report 2019 71
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
GOVERNANCE FRAMEWORK
Responsibility for good governance rests with the Board. This is underpinned by an effective governance framework which is aligned to the
requirements of our business. Certain matters are retained as preserves of the Board, while other specified functions are delegated to the Board
committees. These are the Audit Committee, the Risk Committee, the Remuneration Committee, the Nominating and Governance Committee,
the Safety and Health Committee and the Social, Ethics and Sustainability Committee. Each of these committees operates within defined terms
of reference, which are available on the Group’s website. The Board has also adopted an approvals framework that determines Group-wide
delegation of authority.
The governance framework provides for effective oversight and management of environment, social and compliance issues. It will in the near
future become a business intelligence tool that provides the directors and management with an overview of the health of the organisation’s
governance arrangements with drill down capabilities.
ETHICS IN ACTION
Our Code of Ethics is reviewed annually. Employees and directors undergo induction to familiarise themselves with any changes. The code
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 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 ever higher standards.
In its quest to build and sustain an ethical culture, the Board is assisted by two sub-committees, namely the Audit Committee, which is
accountable for ensuring Group-wide compliance with the Code of Ethics; and the Social, Ethics and Sustainability Committee which oversees
Sibanye-Stillwater’s compliance with best practices in the ethical management of its social and environmental responsibilities. The Social, Ethics
and Sustainability Committee was formerly the Social and Ethics Committee, but was renamed to align with the newly-formed ESG executive
management committee.
Our Code of Ethics requires the reporting of contraventions and non-compliance with relevant legislation and regulations. Supported by a whistle
blowing policy, the Code includes procedures to address corruption and bribery. To facilitate reporting of non-compliance, we have a toll-free line
managed by an independent third party (Deloitte Tip-offs Anonymous) that guarantees anonymity. The toll-free numbers are: South Africa 0800
001 987 and US 1-800-317-0287. Through this mechanism, employees, suppliers and customers can report irregularities and misconduct without
fear of victimisation. These reports are reviewed by the Audit Committee together with the Social, Ethics and Sustainability Committee.
Following recent media reports of victimisation of whistle blowers, the Board’s Nominating and Governance Committee has reflected on the
need to extend the directors’ and officers’ liability insurance to whistle blowers. In the interim, however, whistle blowers’ reports are received
anonymously and with the utmost confidentiality. Only Protection Services and the Audit Committee together with the Social, Ethics and
Sustainability Committee have access to the whistle blower reports.
The Code of Ethics forbids Sibanye-Stillwater at all times from making donations either in cash or in kind to political organisations. No political
donations were made in 2019.
CORRUPTION IN 2019
A total of 368 incidents (2018:353) relating to employee dishonesty (fraud and assisting illegal mining) were reported at Sibanye-Stillwater’s gold
operations leading to 255 (2018:313) employees, including contractors, being subject to discipline. At the SA PGM operations, 94 (2018: 130)
incidents of corruption were reported with 84 (2018:44) employees implicated and being charged and disciplined in terms of our Code of Ethics.
The details are provided below.
A total of 250 anonymous calls (2018:150) were received during 2019 at the SA operations, with most of these relating to fraud and corruption.
Many of the calls provided valuable leads which were investigated.
Those concerned were charged and disciplined in terms of our Code of Ethics, apart from also being subject to criminal investigation processes.
The crimes are recorded on the crime management system, escalated to an investigation and ultimately investigated. Those concerned are
charged and disciplined internally and, where warranted, charged criminally as well.
On 1 May 2018, the US operations were incorporated into the anonymous tip-off service hosted by Deloitte Tip-Offs Anonymous. One call was
received in 2019; the incident was investigated and it was determined that the alleged activity did not breach the Code of Ethics.
No incidents of discrimination were reported during 2019 for the SA operations and one case for the US PGM operations, which was handled
according to the processes and legal procedures of the company.
72
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Anonymous calls in SA operations
Area
Fraud
Breach of company policy
Procurement fraud
Corruption
Illegal mining
Theft of mine property
Time and attendance fraud
Industrial action related
Theft of gold-bearing material
Arson
Trespassing
Human resource related issues
Copper theft
Other
Total
2019
* 78
# 53
33
13
14
19
7
20
3
1
3
3
1
2
2018
32
32
26
16
13
15
16
0
0
0
0
0
0
0
250
150
* The category includes all calls relating to job scams where money is extorted from people with the promise of employment. During 2019, 48 of the
78 calls were related to this
# The increases in the reporting of Breaches of Company Policy are in all likelihood attributable to our extensive marketing campaign
CONFLICTS OF INTERESTS, CLOSED AND PRICE SENSITIVE PERIODS
As per King IV recommendations, directors and executive management are required to submit a declaration of all material financial, economic
and other interests held by the member and related parties. This is done annually, or at any time there are material changes, to their
circumstances. In addition, at every Exco or Board Committee or Board meeting, every member is required to declare any conflicts of interests in
respect of any matters on the agenda.
Employees are required annually and whenever there are any changes, to declare their material financial, economic and other interests on the
employee self-service system.
Given the numerous transactions undertaken by Sibanye-Stillwater in recent years, every effort has been made to ensure that no director,
executive or other Sibanye-Stillwater employee was able to benefit, directly or indirectly, based on unpublished price-sensitive information.
To this end, the Board and executive management received additional training on the JSE Listing Requirements and the Financial Markets Act
pertaining to insider trading provisions.
An updated policy on securities trading and information was also adopted. It is complemented by an Equity Trading Committee that consists
of the CEO, the CFO, EVP: Business Development and the Company Secretary. This committee was formed to evaluate market sensitivity and
determine prohibited periods. We also adhered to strict communication and compliance with blackout/closed periods and disclosed all dealings
by Sibanye-Stillwater directors as well as directors of major subsidiaries. Recently, in accordance with the JSE Listing Regulations amendments
adopted in December 2019, we also included dealings by prescribed officers. This practice is supported by a stringent procedure that includes
provision for granting of clearance to trade by the Board Chairman or the Equity Trading Committee as applicable.
STRATEGY AND PERFORMANCE
In line with King IV’s recommendations, the Board appreciates that Sibanye-Stillwater’s core purpose, its risks and opportunities, strategy,
business model, performance and impacts on sustainable development are all inseparable elements of the value creation process. The Board
contributes to and approves the Group’s vision and strategy. The Board is satisfied that the strategy and business plans do not give rise to risks
that have not been thoroughly assessed by management and that considerations relating to sustainability of the business underpins and guides
strategy formulation.
Sibanye-Stillwater Integrated Report 2019 73
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
The Board participates in an annual strategy review session that also takes into account the external and internal environment. Progress achieved
in the implementation of strategy is considered and reviewed at each quarterly Board meeting to ensure that the Group maintains effective
traction in pursuing the approved trajectory for strategic growth of the business and delivery on our purpose.
RELATIONSHIPS AND STAKEHOLDER RESPONSIBILITY
Effective and consistent stakeholder engagement is essential in identifying potentially material issues and risks, and in understanding and
managing stakeholder expectations. Constructive, meaningful, transparent stakeholder relationships are vital to retaining our social and
regulatory licences to operate. The Board, assisted by the Audit, the Social, Ethics and Sustainability, the 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. In addition, dedicated executives have been appointed with responsibility for stakeholder
engagement in SA and in the US.
A stakeholder engagement policy is in place to guide stakeholder interaction with clearly outlined protocols on how we manage stakeholder
concerns and expectations. As a responsible corporate citizen, Sibanye-Stillwater fosters and maintains constructive engagement with all
stakeholders. By doing so, we can deliver towards our vision of creating superior value for all our stakeholders, create an enabling environment
to deliver on our strategy, and maintain our social licence to operate in support of long-term success and sustainability. The Social, Ethics and
Sustainability Committee monitors the extent to which we are successful in achieving this.
For further information,
see Engaging with our stakeholders and Pursuing opportunities and managing risks.
TAX GOVERNANCE
Our commitment to responsible corporate citizenship and ethical value creation includes the ethical and efficient management of our tax affairs.
We conduct our tax affairs in good faith and comply with prevailing laws in the jurisdictions in which we operate.
Our Board-approved tax risk management framework promotes governance, addresses tax risk and enables us to report and monitor our
tax obligations and associated risks. Our King IV-aligned tax strategy is supported by a tax policy that details processes and policies to ensure
effective implementation and compliance.
On 22 December 2017, new federal tax reform legislation, known as the Tax Cuts and Jobs Act, was enacted in the US, resulting in significant
changes from previous US federal tax law effective 1 January 2018. The significant changes impacting the US operations included a reduction
to the US federal corporate income tax rate and the creation of a base erosion anti-abuse tax on certain intercompany transactions, amongst
other changes. The overall impact of these changes remains a fluid process as the US is currently working to release regulations with respect to
the significant components of the Tax Cuts and Jobs Act. The US PGM operations, through the use of internal tax specialists and external tax
consultants and advisors, proactively monitors regulation releases to assess the likely impact on the region. This is communicated to the Audit
Committee at least on a semi-annual basis, as is deemed appropriate.
Overview of tax landscape
Sibanye-Stillwater contributes directly to the tax authorities and other regulators by way of taxes borne and paid in the jurisdictions in which we
operate, enabling those governments to provide social infrastructure and services.
With the acquisition of Lonmin, Sibanye-Stillwater inherited companies that operated in tax havens. All these companies have been confirmed
to be dormant and are in the process of being de-registered. It is counter to Sibanye-Stillwater’s policy to make use of tax havens or engage in
unwarranted transfer pricing that would deprive the jurisdictions in which we operate from the tax revenues that are justified.
The Group follows a continuous, proactive and dynamic process to monitor 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.
The Group also specifically monitors developments in the international tax landscape related to the Base Erosion and Profit Shifting programme.
Adherence to this programme and the South African Revenue Service Country-by-Country (CbC) Reporting requires that a CbC report is
submitted annually. Our CbC report (which contains financial and labour information for all the companies in the Group, and is made available
to revenue authorities) for the December 2018 year of assessment was submitted on 17 December 2019.
The Group acknowledges that the continued focus globally on the extractive industry, influenced by political changes and the complexity of the
operating environment, may give rise to a challenging fiscal environment.
74
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE VALUE CREATION AND REPORTING
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 best practice and the requirements of the exchanges on which we are listed
• providing stakeholders and the financial investment community with clear, concise, accurate and timely information on Sibanye-Stillwater’s
operations and results
• reporting integrated information to shareholders on Sibanye-Stillwater’s financial and sustainability performance
Our Board reporting has been reviewed to include a specific ESG report that is submitted to the Social, Ethics and Sustainability Committee.
There is a strategic link between corporate citizenship and our ESG performance.
GENDER AND RACE DIVERSITY POLICY
Following the implementation of the updated JSE Listing requirements in December 2019, the Board, through the Nominating and Governance
Committee, will review its policy during 2020 on the promotion of broader diversity at board level, specifically focusing on the promotion of the
diversity attributes of gender, race, culture, age, field of knowledge, skills and experience. In 2019, the Remuneration Committee held ongoing
discussions on gender pay parity; the Social, Ethics and Sustainability Committee continued its focus on women in mining, women in management
and transformation; and the Nominating and Governance Committee continued to actively seek female directors to join the Board.
See Empowering our workforce for further information on gender and racial diversity within Sibanye-Stillwater.
FUNCTIONAL GOVERNANCE AREAS
RISK MANAGEMENT
Responsible committees: 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 also includes communicating, consulting
and establishing the context for risk, as well as 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. The Board has ultimate responsibility for the monitoring of risk exposures and for
determining tolerance levels.
The Audit Committee chairman also serves as a member of the Risk Committee, while the Risk Committee chairman serves on the Audit
Committee. This allows for cross-referencing and thus more effective oversight of risks and risk management.
Our main achievement in 2019 was the full integration of the US PGM operations within our enterprise risk management structures. As
Lonmin (now called the Marikana operations) has existing risk management structures these are currently being aligned and integrated with
the Sibanye-Stillwater risk management process. Another achievement was the embedding of the risks in our strategy through the linking of
the risk register to the strategic objectives.
Management has determined that, as of 31 December 2019, the company’s internal control over financial reporting was ineffective due to the
existence of a material weakness in that the company did not conduct an effective identification, selection and development of control activities
by the central treasury function to mitigate risk in respect of the timely recognition of foreign currency cash receipts as cash and cash equivalents
with corresponding settlement of trade receivables. Management is in the process of remediating the control deficiency. Notwithstanding
the material weakness, management concluded that the consolidated financial statements present fairly, in all material respects, our financial
position, results of operations and cash flows as of and for the period. 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 2019,
see Understanding and managing our material risks and opportunities and the Audit Committee report in this document as well as the Risk
Committee chairman’s report (the full version of which is available online). For a more comprehensive discussion on risks, see the 2019 Form
20-F, available on our website at
https://www.sibanyestillwater.com/news-investors/reports/annual/
Sibanye-Stillwater Integrated Report 2019 75
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
ASSURANCE
Responsible committees: 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. The Vice President: Internal Audit, who serves as the Chief Audit Executive (CAE) in the Company, reports to the
Audit Committee on a quarterly basis and as per King IV, private sessions also take place quarterly between the Vice President: Internal Audit
and Audit Committee.
Improved assurance systems have been put in place. These include the audits following on our ICMM membership application, the ISO
certification being sought, cyanide management and a third-party tailings audit. In addition, an independent survey was conducted of our
engineering infrastructure and systems on behalf of an insurance underwriting service.
REGULATORY COMPLIANCE
Responsible committees: Audit Committee; Risk Committee; Nominating and Governance Committee; Safety and Health Committee; Social,
Ethics and Sustainability Committee
Sibanye-Stillwater subscribes to zero-tolerance for regulatory non-compliance, for which dedicated compliance officers appointed at the US
and SA operations have responsibility.
Shortcomings in statutory and regulatory compliance could result in two main outcomes: regulatory sanction and diminished reputation.
Regulatory sanction includes the penalties that may be incurred if Sibanye-Stillwater and its operating entities do not comply with all defined
statutory, regulatory, supervisory and other requirements. Diminished reputation could result in Sibanye-Stillwater losing the confidence of key
stakeholders and experiencing disruptions due to deterioration in our stakeholder relationships.
Legislative and regulatory compliance is the responsibility of respective functional departments. The regional compliance functions assist
by simplifying legislation and alerting management to changes or pending changes of a legislative or regulatory nature. At the US PGM
operations, a Compliance Committee comprised of site and service group leadership, meets quarterly to report on and strategise the
compliance function. The compliance function facilitates the management of compliance risk by distributing a compliance methodology,
compiling regulatory compliance risk profiles and by providing advice and guidance relating to strategic compliance issues.
Compliance risk profile sessions are held with business units bi-annually to assign 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
may 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 or other
regulatory obligations in 2019. Recent major statutory and regulatory changes include the revised Mining Charter released in September
2018, the Carbon Tax Act and revisions to the JSE Listings Requirements.
76
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE REGULATORY COMPLIANCE CONTINUED
Responsible committees: Audit Committee; Risk Committee; Nominating and Governance Committee; Safety and Health Committee; Social,
Ethics and Sustainability Committee continued
Pending legislation in South Africa includes:
Legislation
Status
How we comply
Protection of Personal Information Act (POPIA)
Pending
Cybercrimes Bill, 2017
Pending
A project to review the retention and storage of information
and records in accordance with the POPIA continues, although
regulations are not yet effective
technology)
(also refer to Harnessing
Controls have been put in place to prevent and/or mitigate the
consequences of a breach of our ICT systems and prevent any loss
of information that might potentially lead to regulatory penalties
and reputational harm
(refer to Harnessing techonology)
Land Expropriation Bill, 2019
Pending
Subject to negotiations
Constitution Eighteenth Amendment Bill, 2019
Pending
Subject to negotiations
Companies Amendment Bill, 2018
Income Tax Amendment Bill, 2019
Pending
In compliance with Companies Act 71 of 2008
Pending
In compliance with Income Tax Act 58 of 1962
National Health Insurance Bill, 2019
Pending
Subject to negotiations
National Environmental Management Laws Amendment
Bill, 2017
Pending
In compliance with National Environmental Management Act 107 of
1998. Additional measures in place when/where applicable.
Recent US developments include the US Environmental Protection Agency’s (EPA) Office of Water rescinding all draft guidance documents
more than two years old. While broadly important to various regulated industries, many of these rescinded documents had been identified in
the National Mining Association’s (NMA) multi-year plan as impediments for the mining industry.
The President’s order ‘Promoting the Rule of Law Through Improved Agency Guidance Documents’ is intended to ensure that agencies
use non-binding guidance documents appropriately and that the public has access to them. Specifically, this order requires each agency,
within 120 days of the date on which the Office of Management and Budget (OMB) issues an implementing memorandum to: (1) establish
a searchable, indexed database that contains or links to all guidance documents in effect from the agency and (2) review its guidance
documents and rescind those that should no longer be in effect. The order also requires each agency, within 300 days of OMB’s implementing
memorandum, to set forth a process for issuing guidance documents. For ‘significant guidance documents’, each agency must also include
a minimum 30-day public comment period before issuance of a final guidance document and provide a response to comments if major
concerns are raised in the comments.
Another Executive Order ‘Promoting the Rule of Law Through Transparency and Fairness in Civil Administration Enforcement and
Adjudication’ prohibits agencies from enforcing rules that have not been made public in advance. Specifically, the order: (1) reiterates that
guidance documents generally may not be used to impose new standards of conduct on persons; (2) ensues that agencies may only apply
standards of conduct that have been publicly stated in a manner that would not cause unfair surprise; (3) requires the publication of any
agency document that has been relied upon in any decision in adjudication; and (4) requires agencies to provide an opportunity to be heard
before an agency takes any action with respect to a particular person that has legal consequence for that person.
As of the end of the third quarter, EPA’s Office of Water has rescinded 63 draft guidance documents dated from 1977-2016 which were never
finalised or withdrawn. While the draft guidance documents rescinded are important to regulated industries broadly, many of the rescinded
documents specifically impact the mining industry, including:
• draft field-based methods for developing aquatic life criteria for specific conductivity; and
• four draft technical support documents regarding implementation of selenium criterion.
Sibanye-Stillwater Integrated Report 2019 77
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
TECHNOLOGY AND INFORMATION
Responsible committees: Audit Committee and Risk Committee
The governance and management of information and related communication technologies (ICT) has become increasingly critical, given our
increasing dependence on the use of technology for business-critical functions. Our ICT infrastructure includes email communication; the
electronic exchange of documents and information with suppliers, employees and others; and the storage of data and information. Controls
have been put in place to prevent and/or mitigate the consequences of a breach of our ICT systems and prevent any loss of information that
might potentially lead to regulatory penalties and reputational harm in terms of the Cybercrimes and Cybersecurity Bill 2017.
Sibanye-Stillwater applies innovative technology to secure and enhance operational and knowledge performance towards continuous business
improvement. Our ICT risk governance framework and strategy, which is reviewed annually, was approved for 2020, and aims to minimise risk
exposure and mitigate risks. Cyber risk is a strategic, external risk rather than operational. An approved Group ICT charter, aligned with King
IV and including all operations, was 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.
For your information, see Harnessing technology beginning on page 226.
REMUNERATION
Responsible committee: Remuneration Committee
Sibanye-Stillwater’s remuneration policies and practices determine our ability to attract, motivate and retain those with the talent and skills our
ongoing success requires. This is particularly pertinent at executive and senior management levels, to enable delivery on our strategic vision in
the short, medium and long term. It is thus essential to motivate and reward individual, team and operational performances with reasonably
equitable remuneration that underpins our remuneration philosophy.
Detailed information on remuneration philosophy, policies and implementation of remuneration and significant developments of the past year
as well as intentions for the coming year, is available in the
in this
Remuneration Report. See also the summary of the Remuneration Committee
Corporate Governance section.
OUR BOARD, GOVERNANCE STRUCTURES AND PROCESSES
Our Board has a unitary structure and is led by an independent non-executive Chairman, with a Lead Independent Director appointed early in
2020. The roles of the CEO and the Chairman are separate.
Collectively, the directors have the breadth and depth of skills, knowledge and experience with the required diversity of thinking to effectively
discharge their duties and responsibilities. This lends itself to informed, objective decision-making, providing effective governance and making
for a Board that delivers a positive contribution to value creation.
At the Columbus Metallurgical Complex
78
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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 applied, and
that appropriate business and financial risk management is in place.
The Board charter sets out the Board’s responsibilities, authority and mandate. The charter is reviewed annually and is aligned with the
Companies Act 71 of 2008, as amended, King IV, the JSE Listings Requirements and the NYSE Listed Company Manual. The charter is available
on our website:
https://www.sibanyestillwater.com/about-us/governance/
Key areas of Board deliberation in 2019
• Safety and our safe production strategy
• Balance sheet deleverage
• Acquisition of Lonmin and the subsequent integration of these operations into the Group
• Strike at SA gold operations
• ICMM membership and ISO certifications and third-party validation
• Conclusion of PGM wage negotiations
Planned areas of focus for 2020
• Impact of the coronavirus
• Continue to oversee ethical and value-driven performance and culture
• Continue with safe production strategy
• IT governance
• Assurance (see Assurance)
New appointments
Following a vigorous search by an independent service provider and interviews with the Nominating and Governance Committee together with
the Board, Harry Kenyon-Slaney was appointed to the Board on 16 January 2019 and Dr Thabane Vincent Maphai was appointed to the Board
on 1 June 2019 as chairman designate and assumed the role of Board chairman, effective 1 October 2019. A performance evaluation will be
conducted once he has held this position for 12 months.
Executive team at the relisting at the JSE in February 2020
Sibanye-Stillwater Integrated Report 2019 79
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
CHARACTERISTICS OF OUR BOARD 1
Independence and size
Expertise and experience
Independent,
non-executive chairman
11 DIRECTORS
9 (or 82%) of which are independent,
non-executive directors
Unitary Board
Target: A Board with an
appropriate balance of
knowledge, experience and
skills in areas pertinent to
Sibanye-Stillwater
Achieved: Relevant expertise
and experience
Gender diversity
Racial diversity
By gender
By historically disadvantaged
person (HDP)
18
%
82
Male
Female
9
45.5
45.5%
Other
Other South Africans
HDPs
Age
Succession and rotation
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
By age
By tenure
9
55 %
36
18
%
82
Less than 50 years of age
Between 50 and 60 years of age
More than 60 years of age
6 years
<2 years
Target: Director rotation ensures a
fresh perspective while maintaining
continuity of skills, institutional and
industry knowledge and experience.
Rotation: Timothy Cumming and
Charl Keyter retire by rotation and
are up for re-election at the May
2020 AGM.
New appointments 2:
EJ Dorward-King and TV Maphai will
be appointed at the AGM.
1 All information represented as at 31 December 2019
2 Two non-independent non-executive directors were appointed on 1 January 2020, representing Gold One Group Limited, but resigned on 27 March 2020.
80
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE BOARD EFFECTIVENESS AND PERFORMANCE EVALUATIONS
As recommended by King IV, an external assessment of the Board and its committees is undertaken every two years with an external assessment
being performed during 2019. The results of the evaluation indicated that the Board is confident in its overall performance and members are
satisfied that they are up to date with the latest market and regulatory developments. Board members, overall, were satisfied that there is regular
and effective communication between the Board and its committees, as well as between the committees themselves, and that the committees
adequately fulfil their roles and responsibilities, as set out in their respective charters. The need for improved diversity was highlighted again in
2019. The Board addressed this matter by appointing an additional female Board member in March 2020. Members’ responses also indicated that
risk appetite and risk tolerance require further refinement. This will be a major focus of the Risk Committee in 2020.
The Board is satisfied that the evaluation process improves performance and effectiveness.
In addition, the following evaluations were conducted during 2019:
Leadership role
Description of responsibilities
Outcome and recommendations
Succession planning
Chairman
CEO
Leads the Board and ensures integrity and
effectiveness of Board and committees, and
high standards of governance and ethical
behaviour
• Members of the Board were
satisfied with the performance
and leadership of the previous
and new Chairman
• Provides leadership in the area of policy
and strategic direction and provides the
Board with comprehensive information,
analysis and timely advice on all aspects of
the business
• The Board was satisfied
with the performance of the
CEO against agreed upon
performance measures and
targets
• Leads and manages daily operations
CFO and the
finance function
• Provide leadership, direction and
management of the finance and
accounting team
• Provide strategic recommendations to the
CEO and members of the Board
• Manage the processes for financial
forecasting and budgets, and oversee the
preparation of all financial reporting
• Advise on long-term business and financial
planning
• Review all formal finance, and IT related
procedures
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 of the
Chairman was discussed both
in the context of internal and
external candidates. In 2020 a
Lead Independent Director was
appointed.
Succession planning for the CEO
was discussed and potential
candidates for development and
succession were noted.
Succession planning for the CFO
was noted.
Sibanye-Stillwater Integrated Report 2019 81
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
Leadership role
Description of responsibilities
Outcome and recommendations
Succession planning
VP: Internal
Audit serving
as Chief Audit
Executive (CAE)
• Sets auditing strategies and goals, oversee
implementation and schedules
• Oversee staff, mentor and develop their
skills
• Identify and implement control and
compliance initiatives across the
organisation
• Conduct audits, communicate with
departments, and report on audit results
In terms of King IV, the Audit
Committee noted that it was
satisfied that the CAE had the
necessary competence, gravitas,
independence and objectivity.
Successors have been identified and
are being groomed.
Company
Secretary
• Provides the directors of the company
• In compliance with
Successors have been identified.
collectively and individually with guidance
as to their duties, responsibilities and
powers
• Makes 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 other
regulatory requirements in particular
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
Aerial view of the Stillwater mine
82
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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 2019: eight
Ensures Group sustainability 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: Tim Cumming, Neal Froneman,
Harry Kenyon-Slaney, Keith Rayner and
Susan van der Merwe
No. of meetings annually: two
No. of meetings in 2019: three
NOMINATING AND
GOVERNANCE COMMITTEE
Chairman: Vincent Maphai
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: Rick Menell, Nkosemntu Nika,
Jerry Vilakazi and Susan van der Merwe
No. of meetings annually: four
No. of meetings in 2019: four
Board
Chairman: Vincent Maphai
Has ultimate responsibility for providing solid ethical
leadership and strategic guidance, ensuring that the
principles of good corporate governance are
observed in delivering on our strategic objectives
Members: 9 independent non-executive
directors and two executive directors
No. of meetings annually: four and
one strategy session
No. of meetings in 2019: seven and
one strategy session
All Board members attended
all meetings in 2019
REMUNERATION COMMITTEE
Chairman: Tim Cumming
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
Members: Savannah Danson
Harry Kenyon-Slaney, Vincent Maphai,
Nkosemntu Nika and Keith Rayner
No. of meetings annually: four
No. of meetings in 2019: six
SAFETY AND HEALTH COMMITTEE
Chairman: Harry Kenyon-Slaney
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,
Neal Froneman, Vincent Maphai,
Rick Menell and Susan van der Merwe
No. of meetings annually: four
No. of meetings in 2019: four
SOCIAL ETHICS AND
SUSTAINABILITY COMMITTEE
Chairman: Jerry Vilakazi
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, Harry Kenyon-
Slaney, Vincent Maphai, Rick Menell,
Nkosemntu Nika and Keith Rayner
No. of meetings annually: four
No. of meetings in 2019: four
Sibanye-Stillwater Integrated Report 2019 83
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
Board members, expertise and committee membership*
Member
Vincent Maphai
Independence
Expertise
• Corporate affairs and transformation
Committee membership
• Chairman of the board
• Strategy
✔
• Knowledge of ESG
Timothy Cumming
Savannah Danson
• Engineering in the mining industry
• Leadership and strategic development
• Financial services
• Knowledge of ESG
• Communication,
• Finance
• Mining
✔
✔
• Nominating and Governance Committee (chairman)
• Remuneration Committee
• Safety and Health Committee
• Social, Ethics and Sustainability Committee
• Remuneration Committee (chairman)
• Audit Committee
• Risk Committee
• Social, Ethics and Sustainability Committee
• Audit Committee
• Risk Committee
• Remuneration Committee
• Infrastructure management
• Safety and Health Committee (chairman)
Harry Kenyon-Slaney
• Operations
• Geology
• Safety and Health Committee (chairman)
• Social, Ethics and Sustainability Committee
✔
• Health and safety
• Risk Committee
Rick Menell
Nkosemntu Nika
Keith Rayner
Susan Van
Der Merwe
Jerry Vilakazi
Executive directors
Neal Froneman
Charl Keyter
✔
✔
✔
✔
✔
✘
✘
• Business transformation
• Business development
• All aspects of the mining industry, operationally and at
executive management and board level
• Geology
• Financial management
• Finance and accounting at both private and public
sector organisations
• Corporate finance and accounting
• Audit Committee
• Risk Committee (chairman)
• Nominating and Governance Committee
• Safety and Health Committee
• Social, Ethics and Sustainability Committee
• Audit Committee
• Nominating and Governance Committee
• Remuneration Committee
• Social, Ethics and Sustainability Committee
• Audit Committee (chairman)
• Executive management and governance
• Risk Committee
• Regulatory compliance
• Remuneration Committee
• Diplomacy
• Social, Ethics and Sustainability Committee
• Audit Committee
• Foreign affairs, liaison at highest levels of government
• Risk Committee
and regulators
• Strategic investments
• Nominating and Governance Committee
• Safety and Health Committee
• Nominating and Governance Committee
• Shaping major public service policies in post-1994
• Social, Ethics and Sustainability Committee
South Africa
• Advocacy
• Operations management
• Mergers and acquisitions
• Financial management in mining
• Mergers and acquisitions
(chairman)
• Risk Committee
• Safety and Health Committee
* For other public directorships, please go to
www.sibanyestillwater.com
84
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE BOARD COMMITTEES
AUDIT COMMITTEE
Members
Keith Rayner (chairman)
Tim Cumming
Savannah Danson
Rick Menell
Nkosemntu Nika
Susan van der Merwe
Appointed to Committee
Meeting attendance
1 January 2013
30 May 2018
23 May 2017
1 January 2013
21 February 2013
21 February 2013
8/8
8/8
8/8
8/8
8/8
8/8
2019: Contribution to value creation
2020: Planned areas of focus
• Integration of Lonmin (Marikana operations) across all areas of
focus – operational and financial – and focus on SOX control issues
for the year ended December 2020
• Continued focus on deleveraging
• Review of when dividends can resume given the improved cash /
revenue environment
Deleveraging
• A continued focus area for the whole of 2019
• Continual review of our debt facilities and replacement and use
thereof was affected
• A solvency and liquidity review was performed each quarter to
ensure the company and Group were viable operations
• Leverage ratios came down in 2019 due to increased cash flows
from revenue
• No dividends were declared – in part due to normalised earnings
workings being negative but also due to cash being used for
deleveraging
• An area of continued focus for the Audit Committee
DRDGOLD
• A review confirmed that we had sufficient control to consolidate
DRD
• Audit Committee reviewed the PPA model for perspective on DRD
balances
• Reviewed quarterly consolidated financial results and secured
satisfaction with the accuracy thereof, notwithstanding we do not
have direct access to DRD financial numbers
Lonmin (now called the Marikana operations)
• Audit Committee reviewed the PPA model for perspective on
Lonmin balances
• Reviewed quarterly consolidated financial results and secured
satisfaction Audit Committee with the accuracy thereof
• Integration of Lonmin is a focus area for Internal Audit and IT and
there were quarterly report backs to the Audit Committee in this
regard. So far all is on track
• We noted that Lonmin only becomes part of our SOX review in Dec
2020 – we are focusing on that in 2020
IFRS
• Ensured implementation of new IFRS throughout the business
Please refer to the detailed report of the Audit Committee in the
Annual Financial Report 2019 available as part of the suite of reports
on
www.sibanyestillwater.com
The Audit Committee Terms of Reference can be found at
https://www.sibanyestillwater.com/about-us/corporate-governance
Sibanye-Stillwater Integrated Report 2019 85
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
RISK COMMITTEE
Member
Rick Menell (chairman)
Barry Davison 1
Harry-Kenyon Slaney
Neal Froneman
Tim Cumming
Keith Rayner
Savannah Danson
Susan van der Merwe
1 Retired 28 May 2019
Appointed to the Committee
Meeting attendance
1 January 2013
30 May 2018
18 February 2019
30 May 2018
13 February 2013
1 January 2013
23 May 2017
21 February 2013
3/3
2/3
3/3
3/3
3/3
3/3
3/3
3/3
2019: Contribution to value creation
The Committee focused for the year on:
• the top 10 Group strategic risks
2020: Planned areas of focus
• Risk appetite
• Risk tolerance
• the top 10 risks in each operational segment and their mitigation
thereof. These risks were reviewed against the strategy and the
changing operational landscape of the organisation
• review and approval of the updated strategic risk management
responsibility matrix
The Risk Committee’s Terms of Reference are available at
https://www.sibanyestillwater.com/about-us/corporate-governance
NOMINATING AND GOVERNANCE COMMITTEE
Member
Vincent Maphai (chairman)
Sello Moloko 2
Barry Davison 3
Rick Menell
Nkosemntu Nika
Jerry Vilakazi
Susan van der Merwe
2 Resigned 30 September 2019
3 Retired 28 May 2019
Appointed to the Committee
Meeting attendance
27 August 2019
1 January 2013
1 January 2013
1 January 2013
21 February 2013
1 January 2013
30 May 2018
2/4
3/4
2/4
4/4
4/4
4/4
4/4
2019: Contribution to value creation
2020: Planned areas of focus
During 2019, the Committee deliberated on the following matters:
• Board and Exco training
• Training of directors
• Board diversity
• Recruitment of an independent non-executive director
• Nomination of representatives of a major shareholder on the Board
and conflicts of interests
• Consideration of directors’ and officers’ liability insurance, its
adequacy and protection for whistle-blowers
• External service provider for the Board and Board committee
annual assessment
The Nominating and Governance Committee Terms of Reference are available at:
https://www.sibanyestillwater.com/about-us/corporate-governance
86
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE REMUNERATION COMMITTEE
Member
Tim Cumming (chairman)
Harry Kenyon-Slaney
Savannah Danson
Sello Moloko 1
Barry Davison 2
Vincent Maphai
Nkosemntu Nika
Keith Rayner
1 Resigned 30 September 2019
2 Retired 28 May 2019
Appointed to the Committee
Meeting attendance
13 February 2018
18 February 2019
21 February 2013
13 February 2013
23 May 2017
27 August 2019
1 January 2013
1 January 2013
6/6
6/6
6/6
4/6
2/6
2/6
6/6
6/6
2019: Contribution to value creation
2020: Planned areas of focus
• Appointment of an external expert advisor to the committee
• The remuneration philosophy will be refreshed to reflect our
integrated group approach to remuneration, and to improve our
expression of the guiding principles for remuneration
• Management will, in conjunction with its advisors, perform a
holistic review of the short and long-term variable remuneration
arrangements and present possible alternatives for the
Remuneration Committee’s consideration
• The alignment of remuneration strategy with the ESG strategy will
be undertaken, with a focus on the incorporation of ESG metrics
within the variable remuneration design
• Ongoing further evaluation of remuneration fairness will be
performed, with reference to gender and race parity, as well as
analysis of pay ratios between executive and other employees
(Martin Hopkins of Bowman)
• Review and refinement of the existing executive benchmarking
methodology, including updating the relevant comparator group
of mining companies and applying cost-of-living adjustments
for constituent data from companies that are considered global
businesses (i.e. downwards adjustments). A similar process was
followed for non-executive director benchmarking
• Further review of the performance conditions applicable to the
Long-Term Incentive (LTI) share awards with no further refinements
warranted at this stage. This topic will be revisited and included in
the holistic review of variable remuneration arrangements to be
undertaken during 2020
• 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
• Conclusion of the 2019 business plan which had been delayed due
to the SA gold operations strike. The plan was approved based on
the S189 outcomes as well as the operational status after the strike
was terminated
• Assistance from the Health and Safety Committee in reviewing
the framework for setting health and safety targets for incentive
purposes
• Review of framework for setting operational delivery targets (i.e.:
‘threshold’, ‘target’ and ‘stretch’) in business plans for improved
consistency and rigour in operational planning
• Transition of share-based remuneration from equity-settlement to
cash-settlement
• The Minimum Shareholding Requirement (MSR) policy was partially
initiated in 2019 but the full implementation has been suspended
until 2021 subject to the outcomes of the holistic remuneration
review being undertaken in 2020
See the Remuneration Report for more detail.
The Remuneration Committee’s Terms of Reference are available at:
https://www.sibanyestillwater.com/about-us/corporate-governance
Sibanye-Stillwater Integrated Report 2019 87
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION CORPORATE GOVERNANCE CONTINUED
SAFETY AND HEALTH COMMITTEE*
Member
Harry Kenyon-Slaney (chairman)
Barry Davison 1
Sello Moloko 2
Savannah Danson
Neal Froneman
Rick Menell
Vincent Maphai
Susan van der Merwe
1 Retired 28 May 2019
2 Resigned 30 September 2019
Appointed to the Committee
Meeting attendance
18 February 2019
21 February 2013
1 January 2013
30 May 2018
1 January 2013
1 January 2013
27 August 2019
21 February 2013
4/4
2/4
3/4
4/4
4/4
4/4
2/4
4/4
2019: Contribution to value creation
2020: Planned areas of focus
In 2020 the Committee will focus particularly on the following areas:
• Converting the cultural and leadership transformation work into
hard and improved health and safety outcomes
• Ensuring that lessons learned from incidents are applied uniformly
and comprehensively across the rest of the organisation
• Developing and implementing practical technical tools that provide
advanced warning of a heightened risk of rock mass failure
• Cementing the understanding of our safety and health values,
systems and processes among a large workforce, many of whom
do not speak English
During 2019 it was pleasing to deliver a recovery and improvement
on the safety performance from 2018, particularly in the SA gold
operations, which enjoyed a fatality-free year for the first time in the
company’s history.
Notwithstanding this excellent achievement, the Committee focused
on five areas aimed at driving further improvement in health and
safety outcomes.
• Firstly, we demanded and then reviewed deep and penetrating
investigations into any incidents with either fatal or serious
consequences so that lessons could be learned, and corrective
actions implemented
• Secondly, we worked with management to redefine a set of
safety metrics that drive appropriate safety behaviour, incentivise
improvement and ensure our alignment with ICMM safety
principles
• Thirdly, we sought technological innovation from inside and outside
the company, particularly in conjunction with the Global Safe
Production Advisory Panel established in 2018 and through the
Virtual Centre of Excellence and DigiMine collaboration with the
University of the Witwatersrand (Wits), with the single objective of
making the workplace safer for our employees. Initiatives include
predictive rock mass management techniques and opportunities to
use technology to separate people from machinery
• Fourthly, we requested and received a full assessment of the
management and integrity of all the tailings and waste rock
storage facilities across the company. Finally, and perhaps most
importantly, we continued to encourage, challenge and test the
cultural transformation work being done to empower our people
through work on improved leadership, enhancing our values and
culture, improved training and encouraging employees’ right to
withdraw should they identify unsafe conditions
The Safety and Health Committee’s Terms of Reference are available at:
https://www.sibanyestillwater.com/about-us/corporate-governance
88
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SOCIAL, ETHICS AND SUSTAINABILITY COMMITTEE
Member
Jerry Vilakazi (chairman)
Sello Moloko 1
Barry Davison 2
Tim Cumming
Harry Kenyon-Slaney
Rick Menell
Vincent Maphai
Nkosemntu Nika
Keith Rayner
1 Retired 30 September 2019
2 Retired 28 May 2019
Appointed to the Committee
Meeting attendance
21 February 2013
1 January 2013
21 February 2013
13 February 2018
18 February 2019
1 January 2013
27 August 2019
30 May 2018
21 February 2013
4/4
3/4
2/4
4/4
4/4
4/4
2/4
4/4
4/4
2019: Contribution to value creation
2020: Planned areas of focus
The Committee will continue in 2020 to monitor ESG compliance and
integration of the Code of Ethics in the business.
In 2019, the Committee set out to focus on monitoring of adherence
to the Code of Ethics, compliance and improvements to the gender
policy at all levels of the organisation. Regarding gender policies
and practices of interest to the Committee was the baseline study
conducted by the Commission on Gender Equality on a selected
number of mining companies, which included Sibanye-Stillwater’s
gender policies and practices. While the report had highlighted
certain historical gender disparities in salaries aligned to some
positions, the company conducted its own Employment Equity
Barriers Audit focusing on women in mining, pay and grade
inequality the findings and recommendations of which were
implemented in 2019. The Committee is pleased to report that
Sibanye-Stillwater has developed and maintains several Employment
Equity Plans in accordance with the Employment Equity Act and other
applicable legislation and policies.
To ensure that the Code of Ethics becomes a living document and
foundation on which Sibanye-Stillwater is built, the Committee
approved several recommendations aimed at ensuring that the Group
conducts its business in an ethical, fair and responsible way. The
Code of Ethics was rolled out through a variety of initiatives including
booklets, posters, electronic communication and integration into
training manuals at all company operations.
The Social, Ethics and Sustainability Committee’s Terms of Reference are available at:
governance
https://www.sibanyestillwater.com/about-us/corporate-
Sibanye-Stillwater Integrated Report 2019 89
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT
STRUCTURE OF THE REMUNERATION REPORT
This report is presented in three parts – in compliance with King IV specifications
1
2
3
BACKGROUND STATEMENT:
REMUNERATION POLICY:
REMUNERATION IMPLEMENTATION:
Background to our workings and
activities over the year and our
approach going forward
(see pages see 90 to 96)
Information on the main components
of our executive pay packages for the
2020 financial year as informed by our
remuneration philosophy
(see pages 97 to 108)
How we applied our policy to the
remuneration of the executive directors
and the executive vice presidents
(collectively referred to as our Prescribed
Officers) and to the fees paid to non-
executive directors
(see pages 109 to 125)
PART 1: BACKGROUND STATEMENT
Dear stakeholder
In this section of our Integrated Report we endeavour to communicate in a meaningful and transparent way how Sibanye-Stillwater
approaches the complex subject of remuneration, how remuneration is used to incentivise employees and to create long-term value for
shareholders and how our remuneration policies were implemented during the year under review.
We are very aware of the interest that stakeholders rightfully take in this aspect of our business, and we are also mindful that it often
seems complex, difficult to understand and hard to convey in a simple yet comprehensive manner.
The aim of the report is therefore to provide sufficient detail and explanation to enable an informed assessment of our remuneration
policies and their implementation against the social, economic and operational context of an organisation that has moved from a phase
of growth into a phase of consolidation.
We have noted feedback from stakeholders on this subject and we welcome stakeholders’ comments or suggestions in order that we
can continue to improve the quality of our reporting in this very important area.
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’s Executive Committee (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:
• considering and recommending the remuneration philosophy for all employment levels in the Group with a particular focus on the
remuneration of the Group Exco. The Remuneration Policy is described in the second section of this report in accordance with applicable
rules and regulations
• recommending to the Board the remuneration payable and conditions of employment for executive directors and approving the
remuneration payable to the prescribed officers
The Terms of Reference did not change during the year under review.
The Remuneration Committee is satisfied that throughout 2019 Sibanye-Stillwater complied with its Remuneration Policy and that no
material deviations were noted.
90
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE COMPOSITION AND OPERATION OF THE REMUNERATION COMMITTEE
• Two members of the committee retired from the board during the year and were replaced, namely, Barry Davison who was replaced by
Harry Kenyon-Slaney and Sello Moloko who was replaced by Vincent Maphai
• The other committee members are Savannah Danson, Nkosemntu Nika, Keith Rayner and me, Tim Cumming, as Chair
• All members are independent non-executive directors
• The Committee meets formally at least four times a year and met five times during 2019
• All meetings were quorate and attendance by committee members is recorded in the governance section of the Integrated Report
(see page 87).
• In addition to committee members, the CEO, the executive vice president (EVP): Organisational Growth (who has accountability for Group
leadership development and growth) and the vice president (VP): Strategy (who supports the alignment of incentive remuneration with
delivery of the Group’s strategic priorities and outcomes) typically attend our meetings, with the Company Secretary performing committee
administration
• Independent consultants including Martin Hopkins (Head of Reward Advisory Services at Bowmans) and remuneration specialists from PwC
also attend meetings as necessary to provide expert advice
• None of the executive management who typically attend meetings, all of whom provide material assistance to the Committee, do so as of
right and are specifically recused when their own remuneration is being discussed
• We agree an annual work plan that guides our agendas and areas of focus for our four meetings over the year
• Between meetings, we review and consider relevant matters by round robin when required, with subsequent recordal of the round robin
decisions at the next committee meeting
2019 – CONSOLIDATION, SAFETY AND CULTURE
Over the past five years, Sibanye-Stillwater has grown from being a South African gold producer to a multinational precious metals producer. In
this time, Sibanye-Stillwater’s workforce has increased from 35,000 to over 80,000 people. This substantial growth was over-shadowed in H1
2018 by the safety incidents at the South African gold operations which had a profound effect on the whole company, influencing employee
confidence, productivity, workplace reputation and business brand.
To address this temporary regression in safety performance, executive management was tasked with developing and implementing a
comprehensive recovery and improvement plan based on, among other interventions, developing a uniform culture underpinned by ‘values-
based decision making’ throughout the business. This new culture has been designed to rebuild workplace confidence and to materially improve
safety outcomes through the development of a new style of engaged leadership throughout the organisation.
There has been a significant improvement in our safety performance with the SA gold operations achieving a local industry record of 11 million
fatality-free shifts in March 2020, an unparalleled achievement for ultra-deep level mining. The safety performance was also sustained at both
the SA and US PGM operations. It was particularly pleasing that such an improvement was achieved against the backdrop of a five and a half
month wage-related strike in the SA gold operations which caused considerable disruption and required careful retraining of many employees as
they returned to work.
In the SA PGM operations, the Marikana operation (previously Lonmin) was also successfully integrated and re-organised during a period when
wages at the Rustenburg and Marikana operations were under review, resulting in multi-year wage agreements being signed in November 2019
and an operational restructuring being concluded without industrial unrest or operational disruptions.
Sibanye-Stillwater Integrated Report 2019 91
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
OUR STRATEGY
During the year we added ESG as
a sixth area of strategic focus. The
inclusion of ESG metrics will help
to sharpen our attention on our
efforts to both continue to improve
operational performance and to
strengthen our evolving brand as
a responsible mining company
engaged in producing metals that
contribute to a cleaner world.
For more information refer to the Delivering on our
strategy section on page 13 of this report.
1
Building a
values-based
culture
6
Embedding
environmental, social
and governance (ESG)
excellence as the way
we do business
2
Ensuring safe
production and
operational
excellence
3
Deleveraging
our balance sheet
5
Pursuing
value-accretive
growth based on
a strengthened
equity rating
4
Addressing our
South African
discount
REMUNERATION PRACTICES AND BENCHMARKING
Sibanye-Stillwater seeks to use its remuneration policies and practices to align the effort of employees behind the purpose and goals
of the Group. It does this through ensuring that people are given meaningful and value-adding work, that they understand how their
work contributes to the performance of the business, that they are incentivised appropriately at all times and that retention plans are in
place. Engaged employees who identify with the culture of the business will contribute positively through application of discretionary
effort towards sustained safe performance, a cornerstone of our vision.
The Group takes care to design remuneration structures which incorporate realistic performance targets, ensures that there is a clear
line of sight to long-term value creation and that enables earnings deferral for the senior leadership group as necessary. Superior
value for our stakeholders is created through the attainment of both short- and long-term goals and variable pay plans are specifically
designed to try and avoid one being favoured over the other. Our remuneration practices also consider the sustainability of the business,
the career paths of leaders and the management of emerging talent.
The Remuneration Committee addressed the following issues during the year:
• Benchmarking of the remuneration for non-executive directors, executive directors and prescribed officers to ensure it remained aligned
with the growth and development of the business
• The settlement of deferred short-term and long-term share-based incentives (Bonus and Performance Shares) with cash as opposed to
equity scrip
• The Minimum Shareholding Requirement (MSR) policy for senior executives
92
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Benchmarking approach
The Group has evolved markedly in recent years as a consequence of the various acquistions that have been made and this has required us to
alter the way in which we benchmark our remuneration practices. We aim to ensure that any comparisons that we make are to companies of a
comparable size and scale and they use broadly comparable remuneration practices and levels of pay across the various components of total pay.
The benchmarking process compares key financial and operating metrics to those of a mix of local and international comparator companies that all
operate sustainable, reasonably comparable portfolios and cover both guaranteed and variable components of the total reward structure. We have
revised and extended the list of comparator companies used in our benchmarking reviews to improve the relevance of the comparisons made.
Future changes to the Remuneration Policy and practices
The benchmarking of executive remuneration performed during the year demonstrated that while overall total remuneration levels are
acceptable and within market norms, the pay mix currently offered differs in some modest respects from market practice. This prompted the
Remuneration Committee to consider whether a fresh look at the variable pay structures was required and in particular whether the existing
long-term incentive (LTI) practices continued to be appropriate for the Group as it expands its global footprint.
Accordingly, the Remuneration Committee has requested management to conduct an in-depth review of its entire approach to short- and long-
term remuneration for consideration by the Committee during 2020 with a view to any recommended changes being implemented in 2021.
For this reason, apart from the change made in settling share-based incentives using cash instead of equity, there are no material changes to the
Remuneration Policy presented in part 2 of this year’s report when compared to last year.
Without prejudging the outcomes of this review, the approach we have in mind is for a more simplified ‘total incentive plan’ where the total
incentive in any year is determined based upon a combination of Group and personal performance measures. These measures would be defined
annually, with applicable weightings, and be captured in each executive’s performance scorecard. The Group measures would include group-
wide financial outcomes such as total shareholder return (TSR) and/or return on capital employed (ROCE) alongside a range of operational
measures such as safety, production, cost and the developed state of the orebody. Then, after the annual determination of the results relative to
the scorecards for each segment of the Group, and personally for each executive, a portion of the determined ‘total award’ would be paid out
in cash and the remainder would be granted as deferred share-price linked awards which would vest over periods of up to five years, depending
on the seniority of the executive. This is similar to the approach adopted by a few of the companies in our comparator group and we look
forward to engaging with our shareholders further on this matter over the coming year.
The company continues to track emerging local and international remuneration trends both for the purpose of making comparisons on
executive remuneration as well as to ensure that employee benefits, such as healthcare and pension arrangements, are kept in line with
current practices in jurisdictions in which our employees are based. In 2020 all Sibanye-Stillwater employees will be on a medical insurance plan
including those at our SA gold operations who were previously covered by an in-house company medical plan. Employees are also now given
the option to extend such medical benefits to their direct family members.
From left, the Group CEO, Chairman and CFO at the NYSE
Sibanye-Stillwater Integrated Report 2019 93
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Summary of activities undertaken in 2019
Besides the standard governance and approval items on the Remuneration Committee’s annual work
plan, the following matters were addressed during the year:
• Review and refinement of the existing executive benchmarking methodology, including an update of
the relevant comparator group of mining companies and also applied cost of living adjustments for
constituent data from companies that are considered global businesses (i.e. downwards adjustments).
A similar process was followed for non-executive director benchmarking
• Further review of the LTI share awards’ performance conditions. No further refinements are
considered warranted at this stage. This topic will be revisited and included in the holistic review of
variable remuneration arrangements to be undertaken during 2020
• Following conclusion of the Lonmin acquisition (the Marikana operation), the integration and
alignment of these employees and their remuneration practices with our Group’s policies and
practices
• Concluding the definition of the 2019 operational delivery targets to take account of the protracted
gold wage strike and the inclusion of the Marikana operation towards the end of the year
• Assistance from the Health and Safety Committee in reviewing the framework for setting health
and safety targets in future cycles for incentive purposes
• Review of the framework for setting operational delivery targets (i.e.: ‘threshold’, ‘target’ and
‘stretch’) in business plans for improved consistency and rigour in operational planning
• Transition of share-based variable pay awards from equity-settlement to cash-settlement
• The MSR policy details were further refined in terms of matching share awards and performance
conditions but, given the fact that we are undertaking a total review of variable pay policies and
practices and given some of the complications that arise for any MSR policy when following a cash-
settled approach to LTI awards as opposed to an equity-settled approach, it was agreed to suspend
the introduction of the MSR policy until 2021 to be synchronised with the adoption of any new
variable pay policies
New focus areas for 2020
• The remuneration philosophy will
be refined to reflect our integrated
Group approach to remuneration,
and to improve the clarity with
which we describe the principles
that guide our remuneration policy.
• Management will, in conjunction
with its advisors, perform a
holistic review of the short- and
long-term variable remuneration
arrangements and present possible
alternatives to the Remuneration
Committee for its consideration
and potential adoption in 2021
• Further embed ESG strategies
and objectives into the Group’s
remuneration practices, with
a particular focus on the
incorporation of ESG metrics
within the design of variable
remuneration
• Continue to monitor remuneration
fairness, paying particular attention
to gender and race parity, as well as
the analysis of pay ratios between
executives and other employees
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 2020: one on the Remuneration Policy Report (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 more than 25% 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 2019 AGM in May last year, 3.4% and 23.8% of shares voted were against the Remuneration Policy and Remuneration Implementation
reports 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 how we implemented remuneration in 2018. We acknowledge the concerns
expressed and the comments made and, consistent with our desire to be responsive to our stakeholders, we will continue to evolve our
disclosure and interactions in line with deemed best practice.
The table on
responses.
page 95 provides an overview of the main comments and concerns raised by shareholders and proxy advisors together with our
94
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Shareholder concerns and feedback
Responses
Short-term incentive (STI) KPIs do not
include short-term financial outcomes
with focus on operational delivery
Non-executive director fees seem
high relative to those of South
African peers
The primary focus of the STI KPIs is on factors over which employees have reasonable control and
influence. Financial factors are indeed included in those KPIs (especially in the measurement of
operating costs), albeit limited. Beyond the measures used to reward the safe and efficient extraction of
as much precious metal out of each tonne of ore as possible, the main drivers of financial outcomes for
the company are beyond the control of the employees (such as metal price, exchange rates and, with
the exception of the prescribed officers, financial structuring). Nonetheless, these factors are indeed
incorporated in the extent to which the employee will be rewarded or ‘punished’ in the resultant value
of their LTI awards – as they are reflected in the share price. It is here, in the LTI that the shareholder’s
and employee’s financial outcomes are aligned. We believe this is an appropriate and balanced
approach between what is measured and rewarded in the STI versus the LTI. However, this balance will
again be considered as a part of the holistic review of variable remuneration within the upcoming year.
Even though its head office is in South Africa (SA), the Group is now a substantial multi-national
group operating in multiple jurisdictions across the globe, and is dual-listed both on the JSE and NYSE
with the concomitant risks that involves. Accordingly, we deem it appropriate to benchmark fees
to a comparator group (for both executive and non-executive directors) which includes appropriate
SA as well as global companies that are selected for reasonable comparison. (See details elsewhere
in this report.) We also use a cost of living adjustment (i.e.: a downward factoring) when looking at
the dollar or sterling based fees of the global constituents and add these data to the rand based SA-
comparative data when making benchmark comparisons. According to this benchmarking approach,
the findings do not support the concern that fees are high, and in fact certain roles were identified as
being remunerated at lower rates than the adjusted-comparator median rates.
Maximum incentive earnings capped
at very high potential relative to peers
while on-target incentive earnings
aligned – more geared to performance
and putting a premium on how
performance evaluation is done
Our benchmarking work does not register this concern to the same extent, and we do not consider
the incentive plan as being unreasonably out of line in this regard. While the STI has similar gearing
to performance as many of its peers, the Sibanye-Stillwater CEO has a higher gearing to performance
in terms of the value of long-term incentives on vesting with substantial upside available in respect of
superior delivery against the applicable performance conditions. Nonetheless, we will be revisiting this
aspect as a part of the holistic review of variable remuneration during the upcoming year.
Treatment of safety in the
determination of 2018 STIs,
considering the number of fatalities
experienced
196 and
201). Not only did we
We are aware that several shareholders expressed similar concerns last year and we addressed
this in detail in our 2018 Integrated Report (see pages
dramatically increase the ‘hurdle’ which SA gold operations’ management needed to achieve the
‘safety’ measures for the second half of 2018, we also substantially increased the weighting of that
measure relative to the other measures. That was done in order to provide an even higher degree
of operational focus on safety in the second half following the very poor results in the first half. The
safety performance of the SA gold operations improved dramatically in the second half of 2018 – and
this improvement was sustained throughout 2019. However, this change in the weighting affected
the scoring of the safety measure for the year 2018 as a whole, resulting in a rating that gave fair
recognition to the turnaround that had been achieved while still providing a zero score for the early
period. Besides this, the Remuneration Committee applied a 20% reduction in the vesting awards
of the LTI shares for that period in respect of the shortcoming in ESG performance represented
by the safety outcomes. Several shareholders felt this was not sufficient and expressed their votes
accordingly. Safety remains a top priority and a central component of our scorecards.
Performance conditions applicable to
LTI awards – vesting below median
Absolute TSR not included as a
performance condition
We are mindful of this concern but it has not been uncommon among SA companies that use TSR
or relative share price comparisons as performance conditions when determining vesting levels for
LTI awards to allow for some vesting at or below the median or average outcomes of the relevant
comparator data and this has been especially so in mining companies. We note that a 35% vesting of
the awards at the 50th percentile (median) is considered reasonable on a comparable basis. However,
as we have become more multinational, we need to broaden this comparison going forwards and it will
be addressed as part of the holistic review of the Group’s incentive plan to be undertaken in 2020.
While we believe in a balance of absolute and relative measures for a balanced assessment of
performance, we do not believe that using an absolute return measure for TSR is appropriate for
Sibanye-Stillwater since that would be an asymmetrical approach. We believe that a relative TSR
measure is appropriate due to the inherent cyclical nature of markets, and, within our industry, the
commodity cycle. We note that it is a common approach that is followed by comparable companies.
The ROCE measure does, in a sense give an alternative ‘absolute’ comparison measure since the cost
of capital is typically always a positive number that the ROCE is based off and strongly related to the
absolute return received by shareholders. Using both the relative TSR and the ROCE as measures are
common accepted practice and are deemed fair bases for determining vesting levels of LTI awards.
Sibanye-Stillwater Integrated Report 2019 95
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
REMUNERATION CONSULTANTS
During the year, management (and the Committee) consulted with remuneration experts at PwC to assist with the benchmarking of
remuneration and fees. However, a decision was made to appoint PwC as remuneration consultants on a more regular contractual basis to work
with the remuneration management team to support the development and implementation of our Group reward policies.
The Remuneration Committee, separate from management, had previously engaged with remuneration consultants on a case-by-case basis as
and when the need arose. However, the Remuneration Committee entered into a formal on-going relationship with an expert remuneration
advisor, Martin Hopkins: Head of Reward Advisory Services at Bowmans, as a dedicated specialist advisor to the Remuneration Committee with
effect from April 2019.
We are satisfied that these consultants are independent, objective and well qualified, and suitably experienced for our purposes.
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
22 April 2020
Relisting as Sibanye-Stillwater on the NYSE in February 2020
96
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE PART 2: REMUNERATION POLICY
Changes to the Remuneration Policy from year to year have been noted in green tinted blocks on
pages 105 and 107
REMUNERATION PHILOSOPHY VS REMUNERATION POLICY
During 2020 we will seek to further refine our remuneration philosophy to reflect the development of the Group over the past five years. Below
we set out a summary of the principles that guide our approach to remuneration.
GUIDING PRINCIPLES INFORM OUR REMUNERATION POLICY
The key guiding principles that underpin our remuneration philosophy and which provide the framework for the design
of our remuneration policies and practices, are:
Flexibility
Transparency
External
competitiveness
Internal
comparability
Recognition
To support a diverse
and multi-regional
organisation to
accommodate differences
and changes in job
requirements, labour
market practices and
economies.
To provide executives and
staff with clarity on their
roles and performance
expectations and ensure
that they understand
how the remuneration
practices and structures
apply to them.
To ensure the Group
adopts appropriate pay
levels and structures for
comparable jobs within
relevant labour markets.
To provide remuneration
guidelines that ensure
similar jobs are paid
equitably across the
Group within relevant
labour markets.
To reward performance
through appropriate
base pay progression,
STIs (bonuses) and,
where applicable,
LTIs. Extraordinary
performance and
contributions are
rewarded at a level
that signifies the value
of the employee to
the organisation and
encourages retention and
further commitment.
Sibanye-Stillwater’s remuneration philosophy seeks to attract and retain key talent and to reward employees fairly and appropriately across
the organisation. We aim to be regarded as an organisation that encourages, recognises and rewards high performance and delivery on
our strategic focus areas that were presented by the chair of the Remuneration Committee on
page 92 of his background statement.
We strive to ensure fairness across all remuneration decisions and offer employees a rewarding work environment where they can develop
their careers and earn a good living. We seek at all times to make sure that our remuneration policies allow us to attract, retain and
motivate talented and skilled people, particularly at senior management level. We want our systems to encourage people to work hard,
to seek opportunities to improve their skills while at the same time enjoying an appropriate work-life balance. Finally we benchmark
our remuneration structures annually against relevant peer groups to ensure reasonable external parity and competitive remuneration
potential. In addition, employees’ remuneration levels and remuneration potential are compared internally to ensure appropriate parity or
differentiation. We value the insights that benchmarking provides, which we consider offers important data points which allow us both to
remain competitive and ensure fairness in our overall remuneration structure.
Sibanye-Stillwater Integrated Report 2019 97
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
FAIR AND RESPONSIBLE REMUNERATION
We remain committed to remuneration fairness across all levels of the organisation.
Fairness in remuneration is a complex matter which must be considered from the perspectives of different stakeholders – employees,
shareholders and the broader community in which we operate. Different groups often hold conflicting opinions on what constitutes
fairness and we welcome feedback as we continually seek to balance these differences and strive to carry out our responsibilities 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 employee 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:
• 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, through application of appropriate 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.
Sibanye-Stillwater commits to annually assessing its Gini coefficient (as it initiated in last year’s report), as well as analysing pay
discrepancies delving into the reasons for the discrepancy. We will also determine our Palma ratio and monitor our internal pay gap. As
in previous years, this exercise will include monitoring pay at the operator level (lowest level of pay) and the total rewards offering to all
employees to determine how to improve their overall wellbeing.
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) while 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.
ENSURING THE LINK BETWEEN STRATEGY AND REMUNERATION
Sibanye-Stillwater is evolving rapidly and we regularly assess whether our remuneration structures continue to support the Group’s goals
and objectives. We take care to ensure that they resonate meaningfully with our employees and that they are aligned with a reasonable
set of personal and business expectations.
Values-based decision-making is at the core of our culture and we want our incentive systems to actively support its uptake and the
associated change in leadership behaviour which is required. We regularly test our incentive measures to ensure that they are supportive
of the growth and sustainability of our business, with costs and safety remaining central to this. As part of this assessment we not only
consider ‘what’ we measure but ‘how’ we measure to ensure that there is always a strong link between pay and performance.
98
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE PERFORMANCE-BASED REMUNERATION
The Group’s underlying strategy and objectives are described elsewhere in this report (refer page 13) and this section explains how
remuneration is linked to delivery of these strategic objectives.
Once the Board and management have agreed the short-and long-term strategies for the Group they are devolved down into business
plans for each operating segment. These are then converted into specific metrics that are included in the various performance
scorecards applicable at each level of the organisation. Scorecards enable the allocation of particular elements of the business plan to
particular executives and their teams and they also allow differing degrees of importance to be attached to different components by
applying variable weightings to each component.
Three scorecards are used to determine the overall success of the organisation and the performance of the individual executive and it is these
scorecards which determine the 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 LTI outcomes for executives.
1
Operational
delivery
scorecard
Covers the four key operational result areas for the Group as a whole – safety, cost, production and orebody
developed state. 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 area 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
performance conditions that determine the proportion of LTI awards that participants receive.
The overall STI and LTI remuneration for each executive is then determined by the performance achieved against each of these
scorecards which, in turn, is directly linked to the strategic objectives of the business.
Variations to the Remuneration Policy
There have been no significant changes to the Remuneration Policy, and thus, the policy set out below is much the same as last year.
However, we have included the summary for ease of reference.
Sibanye-Stillwater Integrated Report 2019 99
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
REMUNERATION ELEMENTS
Sibanye-Stillwater’s remuneration structure includes the following elements:
Description
Alignment with remuneration philosophy
Guaranteed base pay
(GRP)
Base salary and allowances including provision
for medical and retirement contributions.
STI
LTI
Annual incentive based on a combination of
operational delivery and execution of approved
business strategies (split between cash and a
deferred portion for senior employees).
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.
With reference to the relevant market median guaranteed
pay benchmark taken from remuneration surveys. This
provides the foundational element of the remuneration mix.
Performance-based reward providing immediate
recognition for superior performance over the prior year.
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.
COMPOSITION OF TOTAL REMUNERATION PACKAGE – EXECUTIVE DIRECTORS AND SENIOR EXECUTIVES
The three performance levels illustrated on the next page are based on the three performance pillars within Sibanye-Stillwater,
namely the personal performance scorecard, the operational delivery scorecard and the shareholder value delivery scorecard. The
personal performance and operational delivery scorecard outcomes influence the STI that falls due, including the deferred share-based
component, while the personal performance and the shareholder value delivery scorecard outcomes influence the share-based LTI. The
impact of share price appreciation is not taken into account in the analysis presented.
Threshold performance is based on the implications where none of the above mentioned performance pillars have been met and only
GRP is paid.
‘Simulated on-target’ is based on the performance that represents on-target achievement on the operational delivery scorecard, a
standard performance rating of 3 on the personal performance scorecard (i.e. good performer) and an expected level of performance
equating to a 40% achievement of the performance conditions on the shareholder value delivery scorecard. Given the personal
performance scorecard achievement of 3, the value of the performance share units that comprise the long term incentive award is not
adjusted upwards as indicated under Determining allocation quantum.
‘Maximum’ represents the maximum incentive pay which can be received, in the unusual event, when stretch performance on all three
performance pillars is met. This will result in STI settlement equating to 200% of the simulated on-target STI. The performance share
unit profile is adjusted for stretch personal performance at allocation (i.e. 5 rating on personal performance scorecard being regarded
as a ‘top performer’) which results in an additional quantum equivalent to the simulated on-target being allocated (i.e. performance
factor of 200% of the ‘good performer’ allocation). In addition to the personal performance enhancement outlined above an additional
vesting quantum is also earned as a consequence of full delivery on the shareholder value delivery scorecard which adjusts the 40%
vesting profile for simulated on-target to 100% vesting. In the maximum performance level, for the LTI component, distinction is
made between the top-up allocation made for exceptional personal performance in the year preceding the allocation (i.e. retrospective
performance), and the stretch outcomes for the prospective performance conditions applied (i.e. the shareholder value delivery
scorecard - currently consisting of TSR and ROCE).
COMMITMENT TO THE SOLIDARITY FUND IN SOUTH AFRICA
On 13 April 2020, it was announced that Sibanye-Stillwater’s Board and executive management had unanimously elected to
contribute a third of their remuneration for the next three months to the national Solidarity Fund in SA. This followed a plea by the
President Cyril Ramaphosa for unified action and additional support in the national fight against COVID-19, as well as the financial
commitment made by the President, Deputy President, Ministers and Deputy Ministers to donate a third of their salaries for the next
three months to the Solidarity Fund.
The Solidarity Fund has been specifically established as a vehicle to help citizens and businesses contribute to the battle against the
COVID-19 pandemic and to cushion the pandemic’s impact on the most vulnerable members of society in SA.
100
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE RANGE OF PERFORMANCE-RELATED PAY BY EXECUTIVE
Guaranteed pay
STI (cash bonus component)
STI (deferred share-based component)
LTI (simulated on-target performance)
LTI (max vesting)
LTI (stretch personal)
Chief executive officer
Chief executive officer (%)
Maximum
Simulated on-target
Threshold
Maximum
14
18
12
11
11
33
Simulated on-target
35
23
15
27
Threshold
100
0
R20m
R40m
R60m
R80m
R100m
0
20
40
60
80
100
Chief financial officer
Chief financial officer (%)
Maximum
Simulated on-target
Threshold
Maximum
15
18
12
11
11
33
Simulated on-target
37
22
26
26
Threshold
100
0
R10m
R20m
R30m
R40m
R50m
0
20
40
60
80
100
Executive vice president – SA
Executive vice president – SA (%)
Maximum
Simulated on-target
Threshold
Maximum
Simulated on-target
17
39
Threshold
100
19
12
10
10
31
22
15
24
0
R5m
R10m
R15m
R20m
R25m
R30m
0
20
40
60
80
100
Executive vice president – USA
Executive vice president – USA (%)
Maximum
Simulated on-target
Threshold
Maximum
Simulated on-target
17
39
Threshold
100
19
12
10
10
31
22
15
24
0
U$1m
U$2m
U$3m
U$4m
0
20
40
60
80
100
Sibanye-Stillwater Integrated Report 2019 101
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
GUARANTEED REMUNERATION (GRP)
GRP levels are reviewed annually against market benchmarks to remain competitive. 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. While the median is the first point of reference as a benchmark, when making
comparisons and pay level determinations, other factors such as length of time in the role, and the extent to which the executive
is more than, or less than, fulfilling all aspects commensurate with the role are taken into account. 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 to
ensure pay parity and internal alignment with our remuneration principles is used extensively for levels below the executive.
For the purposes of executive director benchmarking, a global comparator group of reasonably comparable companies was determined,
taking into account location and type of operations, size of group (employees, turnover, assets, earnings before interest and tax (EBIT),
market cap, the various exchanges they are listed on, among others).
For any non-SA comparators, a cost of living adjustment (COLA) was applied to the relevant dollar or sterling fee levels (i.e.: adjust the
foreign currency denominated fees downwards to reflect the lower cost of living for SA residents).
The agreed comparator group used for the 2019 benchmarking is set out in the section of the Remuneration Policy report where the
benchmarking of non-executive director fees is covered.
PERFORMANCE-BASED INCENTIVE PLANS
STIs
While the STI scheme rewards those elements of performance that are mostly within the control and line-of-sight of employees, the LTI
is conditional on the achievement of longer-term financial hurdles that are aligned with shareholder value creation. We have set out
below a graphical illustration on how the STI is calculated and settled.
GRP
On target
STI incentive
(depending on
job grade)
STI performance
(0-200%)
Operational delivery
scorecard
Personal
performance
scorecard
60% paid in cash
STI
For VPs and above
40% paid as deferred
share-based award
– settled in two
tranches at nine
months and 18 months
STIs 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).
102
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE For 2019, 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 SA with direct line responsibility for management of production operations
Operating segment management and services functions and all US management
Group executives and corporate office
Operational
performance (%)
Personal
performance (%)
80
70
70
20
*30
30
* There is a split between personal and service area delivery performance for SA services employees, half of the personal performance is accounted
for by performance in the service area in which they work.
Operational delivery performance
As discussed earlier, operational delivery performance is determined through a scorecard using safety, production, cost and orebody
developed state as the KPIs. This achieves a balance between achieving safe production delivery in the current performance cycle
and preparing the orebody for effective safe production in forthcoming cycles. The framework of KPIs and measures for the 2020
operational delivery scorecard is as follows:
KPIs for 2020 per operating segment
Weight
(%) Parameter
KPI
SA gold operations (one third contribution to Group)
Safety
Production
Cost
30 Serious injury frequency rate (per million hours worked)
30 Gold produced (kg)
20 Operating cost per underground tonne milled (R/tonne) (excluding capex and non controllables)
Orebody
developed state
20
Primary on reef development (m)
Primary off reef development (including capex) (m)
SA PGM operations (one third contribution to Group)
Safety
Production
Cost
30 Serious injury frequency rate (per million hours worked)
30 Ounces produced (000 4E oz)
20 Total operating cost (R/tonne treated) (excluding capital development and non-controllables)
Orebody
developed state
20
Primary on reef development (m)
Primary off reef development (m)
US PGM operations (one third contribution to Group)
Safety
30 Total injury frequency rate (per million hours worked)
Production
Cost
Orebody
developed state
30
20
Returnable 2E PGM produced ('000oz)
Recycling throughput (tons smelted per day)
Total operating cost (US$/ton treated excluding recycling) (excluding capex and non-controllables)
Recycling EBITDA (US$ million)
20 Development advance (equivalent 000ft)
Sub-
weight
(100%)
100
100
100
50
50
100
100
100
50
50
100
70
30
75
25
100
Targets in the forthcoming year’s approved business plans are used to set the operational delivery targets applicable for the STI calculations.
The Board pursues an intensive process to prepare business plan commitments that are a fair statement of what Sibanye-Stillwater’s orebodies
are capable of delivering. In determining the targets, consideration is given to performance that is realistically achievable given the levels of
operational risk that would normally be experienced while allowing for an element of continuous improvement in safe production effectiveness
from the organisation’s performance over the past few years.
The on-target level of operational delivery is therefore set on a basis that, with diligent and assiduous management, the expected performance
will be exceeded on a monthly basis on as many occasions as there is a shortfall. This provides management with reasonable expectations of
earning incentives in accordance with the target remuneration mix in respect of solid operations management.
The typical historical monthly variability in operational delivery is used to determine a suitable performance range spanning from the threshold to
maximum performance levels for the year. Maximum performance nominally reflects exemplary management of operational risks to substantially
below the historical exposure. It represents the performance that can be achieved through an exceptional management effort that results in
monthly operating results consistently and substantially closing the gap to full potential delivery. While a symmetrical performance range is to
be preferred, history reflects that, due to the disruptive impact of risk events, performance shortfalls that result when risks eventuate tend to be
more substantial than the outperformance when risk is exceptionally well controlled. The threshold is therefore typically positioned further from
the on-target performance level than the maximum.
Sibanye-Stillwater Integrated Report 2019 103
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
At the start of each performance cycle and based on these principles, the Remuneration Committee approves the KPIs, target performance levels
and ranges that will be used to determine the quality of the Group’s operational delivery.
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% rating for each measure, and a maximum
performance outcome resulting in a 200% rating for each measure.
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. Examples of such events may be
force majeure such as unavailability of national utilities that are necessary for operations to be conducted safely or extreme weather events.
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 Group. 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 personal performance scorecards are structured around the strategic focus areas that are defined as the critical areas for attention to
improve the strategic positioning of the Group as discussed in the strategy, risks and opportunities section of the Integrated Report on
pages 31 to 46. For the 2020 cycle, ESG has been included in addition to the five strategic focus areas from 2019 in line with
Sibanye-Stillwater’s commitment to responsible mining.
The Group uses a rating scale of 1 – 5 where an ‘on target’ outcome would be rated 3 resulting in a 100% rating for the performance
component, with the highest rating of 5 resulting in a 200% rating for this component. If the personal performance evaluation of any executive
falls below 2.5 then no STI (cash or deferred share price linked incentive) will be awarded.
Maximum STI achievable
If stretch targets are achieved or exceeded on both operational and personal performance scorecards, the maximum incentive is capped at
double the on-target bonus level.
Deferral of a portion of STI into share price-based remuneration
All employees who are at VP level or above have 40% of their overall STI settled in two equal tranches incorporating share price appreciation
over the deferral period at nine months and 18 months after the award date. The deferred portion of the incentive is forfeited in the event of
resignation or termination for cause, with a pro rata payout applicable in the case of no-fault separations.
LTIs
Determining allocation quantum
Annual LTI awards are made under the current Sibanye-Stillwater senior management incentive plan to vice-president level and above. The value
of the award is a function of the annual GRP by a factor related to the executive or management job grade (on-target percentage) and further
multiplied by a factor related to their assessed personal performance for the relevant period preceding the award. The performance factor
applied in this latter case is determined by reference to the table below.
Personal performance 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
The awards vest on the third anniversary of the award date dependent on the extent to which the performance conditions have been met. The
award is forfeited in the event of resignation of an executive or termination for cause. In the case of no-fault terminations, a pro rata vesting is
determined subject to the application of the performance conditions over the relevant period.
104
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Performance conditions for vesting
The proportion of the LTI awards that vests after the three-year period depends on the extent to which Sibanye-Stillwater has performed relative
to two performance criteria – TSR and ROCE over the applicable three years. The Remuneration Committee also has discretion to reduce the
amount 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 LTI award 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 proportion of the award
that will vest at the end of each award cycle ranges from 0% to 100% of the initial award amount. No variations to the performance conditions
were made during the year.
However, in 2019, the Remuneration Committee did approve a change to the basis upon which the LTI awards as settled, changing from
an equity-settled basis to a cash-settled basis. While the impact of this is largely neutral to the participant, this means that financial benefit
can now be realised even during a period in which dealing in the company’s stock is prohibited. It is expected that executives who wish to
retain exposure to the company’s stock as part of their personal investment portfolios after settlement of the awards will use the proceeds
to purchase shares on the open market. While the intended Minimum Shareholding Requirements policy will create stronger incentives to
maintain personal holdings, the deferred STI and LTI awards, which still remain share price-linked despite being cash-settled, will continue
to afford executives with sufficient exposure to share price outcomes and align them with shareholder interests. Settlement of LTIs will no
longer automatically result in shareholder dilution, with the cash expense becoming tax deductible in the period it is incurred. While the
resultant expense item can induce volatility to the income statement, the impact of this can be mitigated by financial structuring if needs be.
TSR – applicable to 70% of the LTI award
Currently the TSR for Sibanye-Stillwater’s purposes is still 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 2019 105
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
ROCE – applicable to 30% of the LTI awarded
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, with linear vesting occuring from achievement beyond minimum threshold. 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%)
≤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 the LTI, up to 20% of the LTI value 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.
MINIMUM SHAREHOLDING REQUIREMENT POLICY
On a supplemental basis to the Remuneration Policy and in order to encourage 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 initially
approved the introduction of a Minimum Shareholding Requirement (MSR) policy for implementation with effect from March 2019. However,
the basis for matching share awards still needed to be determined as well as clarification of the performance conditions that would be applied to
them. Following the decision to switch from equity-settled to cash-settled LTI share awards, this also added a further layer of complexity to the
way in which executives could build up their Minimum Shareholdings in terms of an MSR policy. Given that the Remuneration Committee will be
undertaking a holistic review of the whole variable pay remuneration policy and practices in 2020, it was decided to suspend the introduction of
the MSR policy until 2021 when all these issues could be addressed in concert.
106
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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 Group’s
shareholders at AGMs under the oversight of the Remuneration Committee as from the current cycle.
The appropriate level of fees and increases thereon are determined through a benchmarking exercise 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. Given the growth and transformation of Sibanye-Stillwater into a multinational precious metals mining group listed on
both the JSE and the NYSE, the Remuneration Committee refined its benchmarking approach when considering fees to recommend to the
shareholders at the May 2020 AGM.
The following approach was adopted:
• Use the same comparator group as that used for executive remuneration based on the criteria described earlier for determining a valid
peer comparator group
• Split the comparators into two groups: ‘SA constituents’ and ‘international constituents’
• Obtain data on non-executive director fees for each company in each group
• As with the executives, apply a COLA to the dollar or sterling denominate fees for those in the international grouping (i.e.: adjust them
downwards into a rand value that reflects the lower cost of living for South African residents) but leave the rand denominated fees for
the SA grouping unadjusted
• Take the average of the fees in those two groupings for each category of director (e.g.: for the Board’s fees, for committee chairs, for
committee members etc.)
• Compare current rand denominated Sibanye-Stillwater fees to this average comparator figure
• Allow a ‘tolerance band’ of 20% either side of the average and decide what adjustments might be in order going forward.
The comparator group comprised the following companies.
Comparator group company
Stock Exchange
Location of operations
Anglo American Platinum Ltd
JSE
South Africa
AngloGold Ashanti Ltd
JSE; ASX; and NYSE
America; Continental Africa; South Africa and
Australia
Barrick Gold Corporation
Fresnillo Plc
Gold Fields Ltd
Impala Platinum Holdings Ltd
Kinross Gold Corporation
Kumba Iron Ore Ltd
Newcrest Mining Ltd
Newmont Goldcorp Corporation
TSX
LSE
JSE; NYSE
JSE
TSX
JSE
ASX
NYSE
Canada
Mexico
America; West Africa; South Africa; and Australia
South Africa
Canada
South Africa
Australia
USA
South32 Limited
LSE; JSE and ASX
North America; Africa; Australia and South America
Turquoise Hill Resources
Yamana Gold Inc.
NYSE
TSX
Canada
Canada
The outcome of this review is shown in Part 3 of this report. Changes suggested by the review are to be recommended to shareholders for
their approval at the forthcoming AGM.
Internationally domiciled non-executive directors receive the same rand denominated fees as the South African non-executive directors but
it is proposed that they will in future, subject to shareholder approval, receive a market related per diem allowance, the details of which are
given in Part 3.
Sibanye-Stillwater Integrated Report 2019 107
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Besides this per diem allowance for non-SA resident directors, no other 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 plan, 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 re-
organisation, 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.
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.
108
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE PART 3: IMPLEMENTATION OF THE REMUNERATION POLICY – 2019
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 2019 are
set out below. We have included comparative tables for 2018.
As introduced two years ago, these tables have been compiled to improve clarity and transparency and align with the 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, are reported
on at vesting. To determine cash earnings in the cycle, amounts of shares accrued in 2018 but not settled are subtracted, while shares accrued
in previous years and which were settled in 2018 are added back in. Finally, adjustments are included to take account of market movements on
shares that were settled in 2018.
GRP ADJUSTMENTS DURING 2019
Our remuneration practice provides for annual GRP increases typically taking effect from March of each year. As 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.
During the year, the comparator group was revisited according to the principles outlined in part 2. The comparator group reviewed when
assessing executive director and prescribed officer remuneration levels is set out on
page 107.
This year, taking into account the results of the benchmarking exercise and bearing in mind that the Remuneration Committee will be
undertaking a total review of the remuneration policy and practices during 2020, the decision was made to only apply an inflation-related
increase to the guaranteed remuneration of all prescribed officers at 4.0% of GRP for SA-based executives and 2.3% of base pay for US-based
executives.
This contrasts with increases for employees below the Group exco being context specific in the two distinct operating jurisdictions. It remains an
ongoing imperative and management focus to close the wage gap. The increase on base salary for middle management and supervisory level SA
employees ranged from 5 to 5.5% and at operator level from 7.5 to 8.2%. In the US the base salary increase at middle management level was
2.5% and at supervisory and operator levels averaged at 2.6%
REMUNERATION FAIRNESS
Part 2 of this report addressed our policy and the principles relevant to fair and responsible remuneration. This section sets out some
commentary and analysis undertaken to assess our progress in this regard.
The Group has implemented a deliberate and integrated programme since 2013 to improve our Gini coefficient (when applied to income
inequalities) in SA, while 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 72.5% compared to 40% for supervisory employees
and 35% 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 focused efforts to also
implement job enlargement and job enrichment wherever practically possible in order to try and stimulate employee mobility and job re-grading.
Sibanye-Stillwater Integrated Report 2019 109
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
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
In prior years the Palma ratio and Gini coefficient have been calculated based solely on employees’ GRP, however this year in order to provide a more
holistic overview, a modified approach was adopted. This provided for the calculation of both the Gini coefficient and Palma ratio to be performed on
actual total remuneration paid (including the LTI awarded to senior staff). As previously, all employees across the Sibanye-Stillwater group (both US and
SA based operations) have been included. To provide a comparative figure for last year’s report, we have also calculated the Gini coefficient and Palma
ratio on the previous methodology i.e. only on GRP and have summarised the results of both below. In performing the calculations, a COLA (cost of
living adjustment) has not applied to the dollar based salaries, as the US employees are based in the US and remunerated in accordance to the US laws
and regulations.
Palma ratio
The Palma ratio is determined by taking the amount earned by the top 10% of a group of employees divided by the amount earned by
the bottom 40% of that group. Based on the modified approach, employees comprising the top 10% of the payroll were earning total
remuneration on average about 1.5 times that earned by employees in the bottom 40% earned in 2019. The Palma ratio calculation for 2019
based only on GRP results in employees in the top 10% earning GRP on average of 1.4 times that earned by the bottom 40%, which represents
a decrease from last year’s result of 1.45 times than of the bottom 40%.
Gini coefficient
The Gini coefficient 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. The Gini coefficient also demonstrates declining
differentials in GRP. While not directly comparable, it is interesting to note by way of contrast, that South Africa’s sovereign Gini coefficient,
currently reported by the Organisation for Economic Co-operation and Development© (OECD) to be 0.62, 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.
The Gini coefficient based on total guaranteed package is 0.34 which represents no change from last year. The Gini coefficient for 2019, based
on total remuneration is 0.36, which is lower than that of the RemChannel® Mining industry (0.42) and National All industries (0.44). Sibanye-
Stillwater’s Gini co-efficient is also lower than the US soverign Gini’s co-efficient of 0.39, reported by the OECD©), which can be used a proxy
comparator, given its low unemployment rate of 3.6%.
These outcomes in terms of progression of the Palma ratio and Gini coefficient are presented below.
1.9
1.8
1.7
1.6
1.5
1.4
1.3
2014
2015
2016
2017
2018
2019
Palma ratio (left axis) (based on GRP only)
Gini coefficient (right axis) (based on GRP only)
(based on total remuneration)
(based on total remuneration)
110
Sibanye-Stillwater Integrated Report 2019
0.40
0.38
0.36
0.34
0.32
0.30
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Remuneration paid to Sibanye-Stillwater executive directors and prescribed officers for the year ended 31 December 2019
l
a
t
o
t
e
m
e
h
c
s
n
o
i
s
n
e
P
s
n
o
i
t
u
b
i
r
t
n
o
c
d
e
u
r
c
c
a
s
u
n
o
b
h
s
a
C
y
r
a
l
a
S
Executive directors
Neal Froneman ¹
Charl Keyter
Prescribed officers
Chris Bateman 2, 4
Shadwick Bessit ³
Hartley Dikgale
Dawie Mostert
Themba Nkosi
Wayne Robinson
Richard Stewart
Robert van Niekerk
Total
Paid in SA
Paid in US
8,208
4,313
Total
12,521
6,295
8,919
4,186
3,721
3,833
3,797
4,511
3,947
5,083
912
–
912
899
318
739
260
523
280
366
438
565
7,141
3,341
10,482
4,994
4,481
3,252
2,235
2,808
2,424
2,940
2,828
4,567
3,045
56,813
5,300 41,011
27,342
e
l
b
a
t
i
e
f
r
o
f
f
o
l
a
u
r
c
c
A
d
r
a
w
a
e
r
a
h
s
4,761
2,228
6,989
3,329
2,988
2,168
1,490
1,872
1,616
1,960
1,885
2019 (R000)
t
n
e
m
y
a
p
h
s
a
c
r
e
h
t
O
e
r
a
h
s
l
a
n
o
i
t
i
d
n
o
C
s
d
e
e
c
o
r
p
s
t
fi
e
n
e
b
r
e
h
t
O
–
–
–
–
909
–
909
413
104
–
104
94
7,498
–
1,085
–
–
–
–
–
–
–
7,498
250
192
248
–
267
330
287
–
–
–
–
–
–
–
2,896
1,283
n
o
i
t
a
r
a
p
e
S
/
n
o
i
t
a
n
i
m
r
e
T
s
t
fi
e
n
e
b
f
o
e
r
u
g
fi
e
l
g
n
i
s
l
a
t
o
T
n
o
i
t
a
r
e
n
u
m
e
r
t
o
n
d
e
u
r
c
c
a
t
n
u
o
m
A
:
s
s
e
L
8
1
0
2
n
i
d
e
l
t
t
e
s
s
u
o
i
v
e
r
p
f
o
t
n
u
o
m
A
:
s
u
l
P
8
1
0
2
n
i
d
e
l
t
t
e
s
s
l
a
u
r
c
c
a
t
e
k
r
a
m
r
o
f
s
t
n
e
m
t
s
u
j
d
A
s
l
a
u
r
c
c
a
n
o
s
t
n
e
m
e
v
o
m
d
e
l
t
t
e
s
n
o
i
t
a
r
e
n
u
m
e
r
h
s
a
c
l
a
t
o
T
–
–
–
–
–
–
–
–
–
–
–
–
–
22,035
(11,902)
12,111
4,859
27,103
9,882
(5,569)
2,520
589
7,422
31,917
(17,471)
14,631
5,448
34,525
16,024
(8,323)
7,187
2,663
17,551
25,289
(7,469)
10,595
7,898
9,284
8,117
10,044
9,428
(5,420)
(3,725)
(4,680)
(4,040)
(4,900)
(4,713)
6,421
3,558
3,460
3,995
3,469
4,029
4,276
3,405
27,646
1,536
10,269
1,241
8,874
1,483
10,082
1,318
8,864
1,434
10,607
1,603
10,594
13,547
(7,612)
5,792
2,321
14,048
142,143
(68,353) 56,818
22,452 153,060
¹ Dual service contract with effect 1 January 2019, remuneration paid in US$ was converted at the average exchange rate of R14.46/US$ applicable for the
12-month period ending 31 December 2019
² Remuneration paid in US$ was converted at the average exchange rate of R14.46/US$ applicable for the 12-month period ending 31 December 2019
³ Appointed in a prescribed officer role on 1 December 2018, the value of the previous accruals settled in 2019 are in respect o the accruals for the
prescribed officer position as well as accruals for the position held prior to the prescribed officer appointment
4 The final tranche payable of 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
Sibanye-Stillwater Integrated Report 2019 111
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
REMUNERATION REPORT CONTINUED
Remuneration paid to Sibanye-Stillwater executive directors and prescribed officers for the year ended 31 December 2018
l
a
t
o
t
e
m
e
h
c
s
n
o
i
s
n
e
P
s
n
o
i
t
u
b
i
r
t
n
o
c
d
e
u
r
c
c
a
s
u
n
o
b
h
s
a
C
e
l
b
a
t
i
e
f
r
o
f
f
o
l
a
u
r
c
c
A
d
r
a
w
a
e
r
a
h
s
t
n
e
m
y
a
p
h
s
a
c
r
e
h
t
O
y
r
a
l
a
S
Paid in SA
Paid in US
8,939
2,783
993
6, 729
4,486
–
1,890
1,260
Total
11,722
6,033
7,944
336
3,560
3,674
3,648
4,330
3,774
4,868
993
862
291
59
260
501
269
351
419
541
8,619
5,746
4 237
2,824
4,160
2,773
3 1,717
176
2,022
2,352
2,009
2,440
117
1,348
1,568
1,339
1,626
2,500
1,667
3,221
2,147
–
–
–
–
–
–
–
2018 (R000)
e
r
a
h
s
l
a
n
o
i
t
i
d
n
o
C
s
d
e
e
c
o
r
p
s
t
fi
e
n
e
b
r
e
h
t
O
8,431
249
–
8,431
3,697
–
–
1,571
2,017
–
2,178
4,626
2,731
–
249
44
–
–
–
–
–
–
–
–
n
o
i
t
a
r
a
p
e
s
/
n
o
i
t
a
n
i
m
r
e
T
s
t
fi
e
n
e
b
f
o
e
r
u
g
i
F
e
l
g
n
i
S
l
a
t
o
T
n
o
i
t
a
r
e
n
u
m
e
R
t
o
n
d
e
u
r
c
c
a
t
n
u
o
m
A
:
s
s
e
L
8
1
0
2
n
i
d
e
l
t
t
e
s
s
u
o
i
v
e
r
p
f
o
t
n
u
o
m
A
:
s
u
l
P
8
1
0
2
n
i
d
e
l
t
t
e
s
s
l
a
u
r
c
c
a
t
e
k
r
a
m
r
o
f
s
t
n
e
m
t
s
u
j
d
A
s
l
a
u
r
c
c
a
n
o
s
t
n
e
m
e
v
o
m
d
e
l
t
t
e
s
n
o
i
t
a
r
e
n
u
m
e
r
h
s
a
c
l
a
t
o
T
–
–
–
–
–
–
–
–
–
–
–
–
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
16,885
(8,650)
3,498
(229)
11,504
688
(293)
–
–
395
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
–
–
–
–
49,889
4,546 31,736
21,155
1,717
25,251
293
– 134,587
(54,608)
60,516
(5,490) 135,005
Executive directors
Neal Froneman ¹
Charl Keyter
Prescribed officers
Chris Bateman 2
Shadwick Bessit 4
Hartley Dikgale
Dawie Mostert
Themba Nkosi
Wayne Robinson
Richard Stewart
Robert van Niekerk
Total
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 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
3 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
4 Appointed a prescribed officer on 1 December 2018
112
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
GUARANTEED REMUNERATION ADJUSTMENTS EFFECTIVE FROM MARCH 2020
The following increases were granted to executive directors and prescribed officers (who comprise the Group Exco) with effect from March 2020
based on a cost of living increase reflecting consumer price escalation for the previous year in the jurisdiction of employment for each executive:
Executive
Neal Froneman 1
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit
Themba Nkosi
Wayne Robinson
2019/20
guaranteed
remuneration
(R000/US$000)
2020/21
guaranteed
remuneration
(R000/US$000)
Increase %
R13,162.5
R7,253.5
US$616.8
R4,392.5
R4,013.9
R4,423.5
R5,695.8
R4,960.8
R4,109.5
R4,915.9
4.0%
4.0%
2.3%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
4.0%
R13,689.0
R7,543.7
US$631.0
R4,568.2
R4,174.4
R4,600.4
R5,923.7
R5,159.2
R4,273.9
R5,112.3
1 Neal Froneman’s approved GRP is maintained in South African rand 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.
As reference for comparison, SA operator level base pay increases ranged from 7.5 to 8.2% and for officials, union men and artisans ranged
from 5 to 5.5%.
STI OUTCOMES
As set out in Part 2 of this report, STI bonus payments are based on measuring and rating the performance of the Group Exco against
operational measures, as itemised in the Group operational delivery scorecard and personal performance of each executive based on their
personal performance scorecards.
Operational delivery scorecard outcomes during 2019
The table below shows the outcomes on the operational delivery scorecard for the Group for 2019 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
performance scorecards).
Operational delivery targets for the SA gold operations were determined on conclusion of the protracted wage strike, based on realistic targets
for the remainder of the year combined with the actual operational delivery that had been possible during the strike-affected period. The
Marikana operation was introduced into the scorecard for the SA PGM operations for the last quarter of the year once realistic plans had been
developed based on the findings of operational reviews conducted following the Lonmin acquisition.
As indicated in previous years, 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. These events nevertheless impacted operational performance.
The Remuneration Committee is prepared to consider altering the relevant scorecard KPI targets to allow for these types of events.
Inter alia, when assessing STI outcomes for the past year, the Remuneration Committee applied its discretion in adjusting targets for the following:
• exceptional intensive load shedding during December 2019 (reached Stage 6) which necessitated a reduction in power drawn by the
operations to the minimum required to safeguard the integrity of the mine workings
• damage to pylons and other electricity supply infrastructure at the Marikana operation resulting from an extremely severe storm in November
2019 (amounting to a 1.4% reduction in the target)
While the events were considered significantly anomalous, the resultant change to the target metric was actually relatively minor but the
Committee believed that the principle was still warranted.
In the case of the load shedding impacts on the SA operations, the discretion resulted in a reduction of:
• less than 1.5% to the Primary on Reef Development metrics
• less than 1% to the Primary off Reef Development metrics
• less than 0.1% on Operating Cost metrics
• less than 0.5% to the Production metrics
Sibanye-Stillwater Integrated Report 2019 113
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
In case of the storm damage to electricity supply at Marikana, the reductions in the target metric were of a similar magnitude to those
mentioned above for load-shedding impacts.
The table below presents the applicable operational KPIs, threshold, on-target and maximum target levels, and actual achievement relating thereto.
Scores for the three main operating units were:
• 110.3% for the SA gold operations
• 122.4% for the SA PGM operations
• 72.7% for the US PGM operations
The overall result for the Group (i.e. the weighted average across the operating segments) for 2019 was 101.8%. This compares to an outcome
of 80.7% in the prior year.
Sibanye-Stillwater operational delivery scorecard evaluation 2019
KPI
Weight Parameter
Sub-weight
(%)
Threshold
0%
Intermediate
delivery 50%
On target
100%
Maximum
200%
Actual
Rating
(%)
SA gold operations (one third contribution to group)
Safety
25%
Fatal Injury Frequency Rate (per
million hours worked)
Serious Injury Frequency Rate
(per million hours worked)
Production
25% Gold produced (kg)
Cost
25% Operating cost per underground
ton milled (R/tonne)
Sustainability
25% Primary on-reef development
(m)
Primary off-reef development
(including Burnstone and
capex) (m)
50
50
100
100
50
50
0.086
4.12
23,691
3,500
5,879
15,709
0.077
3.88
25,612
3,256
0.073
3.75
26,252
3,175
0.000
200.0
3.52
200.0
23,414
3,400
0.0
41.1
6,356
6,515
6,964
200.0
16,982
17,406
17,467
200.0
SA gold operations result
110.3
SA PGM operations (one third contribution to Group)
Rustenburg/Kroondal operations (87.5% contribution to SA PGM operations)
Safety
25% Fatal injuries
Serious injury frequency rate
(per million hours worked)
Production
25% Ounces produced (000 4E oz)
Cost
Sustainability
25% Operating cost including ORD
before credits and direct costs
of by product per 4E ounce
produced (R/4E oz)
25% Primary on-reef
development (m)
Primary off-reef
development (m)
50
50
100
100
50
50
3
2.47
1,114
13,605
18,069
12,047
2
2.22
1,238
12,368
1
2.15
1,268
12,058
4
2.28
1,248
12,481
0.0
75.8
134.6
90.8
20,077
20,579
21,760
200.0
13,385
13,720
13,771
200.0
Rustenburg/Kroondal operations result
115.8
Marikana operations October to December 2019 (12.5% contribution to SA PGM operations)
Safety
25% Fatal injuries
Serious injury frequency rate
(per million hours worked)
Production
25% Ounces produced ('000 4E oz)
Cost
25% Operating cost including ORD
before credits and direct costs
of by product per 4E ounce
produced (R/4E oz)
Sustainability
25% Primary on-reef development (m)
Primary off-reef development (m)
50
50
100
100
50
50
0
3.47
160.7
24,850
14,847
5,373
0
3.12
178.6
22,591
16,496
5,970
0
2.95
183.0
22,026
16,909
6,119
0
2.46
178.2
20,206
16,706
6,243
Marikana operations October to December 2019 result
SA PGM operations result
200.0
200.0
97.7
200.0
150.9
200.0
168.3
122.4
114
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Sibanye-Stillwater operational delivery scorecard evaluation 2019 continued
Intermediate
delivery 50%
Sub-weight
(%)
Threshold
0%
Weight Parameter
KPI
On target
100%
Maximum
200%
Actual
Rating
(%)
US PGM operations (one third contribution to Group)
14.0
12.6
11.2
13.3
46.9
Safety
Total reportable injuries per
million hours worked
Progress on ongoing refinement
of US PGM operations safety
strategy
25%
Progress on review of the
GET Safe safety and health
management system
Production
Returnable 2E PGM produced
(000 oz)
25%
Tons milled (‘000 ton)
Cost
25%
Sustainability
25%
Recycling throughput (tons
smelted per day)
AISC per 2E oz (US$ / oz)
Recycling EBITDA (US$ million)
Development advance
(Stillwater including Blitz)
(equivalent 000ft)
Development advance (East
Boulder) (equivalent 000ft)
Diamond drilling advance
(Stillwater including Blitz)
(000ft)
Diamond drilling advance (East
Boulder) (000ft)
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
50
25
25
50
25
25
75
25
12.5
12.5
12.5
12.5
15
15
Safety performance
evaluated
Programme
defined
Definitive
action plan/
schedule
Implementation
begun
Gap analysis of
existing system
vs ISO-compliant
system
Programme
defined
Definitive
action plan/
schedule
Implementation
begun
593
1,474
20
723
7
52
24
470
156
663
1,576
24.4
705
16
74
30
580
193
675
1,604
28.0
687
20
86
32
635
212
20
Carry over to 2020
Started up (all
three sites dry
system testing)
by year end
System chosen
and defined
Commissioned
(all three sites
major systems
feed tested) by
year end
Schedule
prepared for
implementing
system
Handed over
(projects
released to
operations at all
three sites) by
year end
All design work
complete and
implement-ation/
rollout of new
system underway
Gap analysis of
existing system
versus ISO-
compliant system
191.0
150.0
Implementation
begun on most
elements with
definitive action
plans set up for
the balance
Policy update
represents
partial
initiation of
implementation
594
1.4
1,555
79.8
29.7
200.0
784
38
63
0.0
200.0
50.0
23
0.0
659
200.0
152
Carried over to
2020
0.0
0.0
Implementation
in progress
200.0
3
1
0
4
0.0
US PGM operations overall
72.7%
Group overall
101.8%
Sibanye-Stillwater Integrated Report 2019 115
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
REMUNERATION REPORT CONTINUED
Personal performance outcomes for the executive directors during 2019
As set out in Part 2 of this report, a performance 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 performance of 3 corresponds to the ‘on-target’ level and equates to a rating of 100% whereas a performance
of 5 representing exceptional achievement is afforded a rating of 200%.
Performance rating scale (based on 5% stretch target)
Rating % Achievement on targets
Description
Guiding comments
1
2
2.5
3 1
3.5
4
4.5
5
Less than 80% of *PC target is met Non performer
Consistently did not meet all of the expectations
80%-89% of *PC target is met
Poor performer
Consistently did not meet all of the expectations
90%-99% of *PC target is met
Low performer
Regularly did not meet all of the expectations
100% of *PC target achieved
Good performer
Consistently meet all of the expectations or was compliant
101%-102% of *PC target is met
Great performer
Regularly exceeded most expectations
103% of *PC target achieved
High performer
Consistently exceeded most expectations. Works transversally
through the business (cross functionally)
104% of *PC target achieved
Top performer
Consistently exceeded most expectations
105% of *PC target achieved
Top performer
Implemented innovation (industry or dicipline innovation)
* Performance contract
1 3 is a good rating. It means all expectations were delivered – quality, cost and time
Neal Froneman – Chief Executive Officer
Neal achieved a personal performance rating of 4.2 which translated to 160% for the personal performance component of his STI payment. We
have set out the achievement against his balanced scorecard in the table below:
Objective
Building a value based organisational culture – personal ‘future-ready leadership’ component
Building a value based organisational culture – culture programme enablement component
Focus on safe production and operational excellence
Deleveraging our balance sheet
Addressing our SA discount from an investment context
Pursuing value-accretive growth, based on a strengthened equity rating.
Performance highlights include:
Performance
Weighting (%)
rating
10
10
40
20
10
10
4.5
4.0
4.0
5.0
4.0
4.0
• Strong delivery on Sibanye-Stillwater’s strategy, including successfully concluding the final logical step in building our presence in the PGM
mining business with the inclusion of the Marikana operations acquired under the Lonmin transaction. This resulted in a quality mine-to-metal
presence in both South Africa and the US, with Sibanye-Stillwater occupying the leading position globally as a primary metal producer
• Solid leadership in establishing key roles and accountability within Sibanye-Stillwater. Initiatives were taken to consolidate a diverse group
within an integrated Sibanye-Stillwater in order to create and develop a unified value-based culture. This was supported by the successful
initiation of our culture growth programme that has gained substantial psychological adoption from the company’s leadership
• Meaningful progress made in improving the quality of our relationships with government, unions and social advocacy groups through robust,
honest, respectful and sincere interactions structured to secure the sustainable future of our company and delivery of on-going value to all
our stakeholders. The CEO was publicly visible in playing a meaningful role in supporting the development and growth of the South African
economy
• Substantial progress made in enhancing safe production effectiveness and, together with a strong focus on ESG performance, this
contributed to a premium rating of the company as a long-term sustainable major mining company
• Significant re-rating of our equity with stakeholder confidence visibly increased, although a significant discount of our market capitalisation to
our net asset value remains in place
116
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Charl Keyter – Chief Financial Officer
Charl achieved a personal performance rating of 3.9 which translated into 145% for the personal performance component of his STI payment.
His achievements against his balanced scorecard are set out below:
Objective
Building a value based organisational culture – personal future ready leadership component
Building a value based organisational culture – culture programme enablement component
Focus on safe production and operational excellence
Deleveraging our balance sheet
Address our SA discount from an investment context
Performance highlights include:
Performance
Weighting (%)
rating
10%
10%
40%
20%
20%
3.5
3.5
3.5
5.0
4.0
• Despite the five-month strike at the gold operations which ended in early April, a strong EBITDA and cash flows from operations positively
impacted the net debt. This, together with the adoption of tailored financial measures, contributed to the company maintaining its
accelerated deleveraging trajectory
• Progress made in driving creation of Group leadership with strong future-ready competencies, with strides being made in identifying and
actively supporting values-based decision making which will contribute to a core Sibanye-Stillwater organisational culture framework
• Improved external understanding of the Sibanye-Stillwater brand and value proposition through effective engagement with debt and equity
capital providers resulting in increased support
• Despite significant challenges, progress was made in positioning Sibanye-Stillwater so as to improve access to global equity markets, which
will in turn enable us to optimally deliver on our strategy
Overall STI outcomes for executive directors and prescribed officers for 2019
The following table represents the 2019 individual performance assessments made for STI award purposes, together with the applicable cash
and deferred share-based incentive awards made to the executive directors and prescribed officers. Overall performance is based 70% on
operational delivery and 30% on personal performance.
RSA
USA1
Operational
delivery
performance
(%)
Personal
performance
(%)
Overall
performance
(%)
101.8
101.8
72.7
101.8
101.8
101.8
122.4
110.3
101.8
101.8
160.0
145.0
135.0
150.0
100.0
150.0
160.0
140.0
120.0
125.0
119.2
114.7
91.4
116.2
101.2
116.2
133.7
119.2
107.2
108.7
Approved
annual
GRP (R000/
US$000)
Cash incentive
(R000/
US$000)
Value of
deferred
share-based
award (R000/
US$000)
R9,213.7
R7,141.4
R4,760.9
US$298.1
US$231.1
US$154.1
R7,253.5
R4,993.8
R3,329.2
US$616.8
US$309.9
US$206.6
R4,392.5
R4,013.9
R4,423.5
R5,695.8
R4,960.8
R4,109.5
R4,915.7
R2,808.3
R2,235.1
R2,828.1
R4,568.5
R3,252.1
R2,423.9
R2,940.0
R1,872.2
R1,490.0
R1,885.4
R3,045.6
R2,168.1
R1,616.0
R1,960.0
Executive
Neal Froneman
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit
Themba Nkosi
Wayne Robinson
1 Of Neal Froneman’s South African approved rate of pay of R13,162,500, an amount of R3,948,758 was converted into US dollar-based
remuneration under his dual services contract at a 12-month trailing exchange rate with a short-term incentive to be awarded separately on the
South African and US components of his remuneration.
Sibanye-Stillwater Integrated Report 2019 117
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
LTI AWARDS MADE IN MARCH 2019
As disclosed in the 2018 Integrated Report, LTI awards were made to executive directors and prescribed officers in March 2019, based on the
relevant parameters and their personal performance during 2018.
Details for the determination of the conditional (performance) share, LTI awards made to executive directors and prescribed officers on
1 March 2019 are shown below. These will be subject to the performance conditions as evaluated over the period from award date to vesting
on 1 March 2022.
Executive
Neal Froneman
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit
Themba Nkosi
Wayne Robinson
B: performance
factor applied
to allocations
based on BSC
rating
Value of share-
based long-
term incentive
award (R000/
US$000)
A x B: % of
annual GRP
awarded
A: award for
on target BSC
rating (%)
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
156
248
248
R44,917.0
R19,584.6
US$1,781.0
R10,871.4
R9,934.3
R12,772.9
R17,941.8
R8,185.3
R10,171.0
R12,166.3
LTI AWARDS TO BE MADE IN MARCH 2020
The details for the determination of share-based long-term incentive awards made to executive directors and prescribed officers on 1 March
2020 are shown below. The basis on which these share-based awards are determined is explained in Part 2 of this report.
LTIs are awarded in accordance with the on-target percentages as stipulated in the senior management incentive plan approved by the Board as
moderated by personal performance ratings. The awards presented in table below are determined based on the annual GRP post the proposed
March 2020 increases presented in the previous section of this document and will be subject to a performance condition that ranges from 0 to
100% on vesting. The awards will be cash-settled after three years taking into account the performance condition and share price appreciation
that has been achieved by the time of settlement.
Performance
factor applied
to allocations
based on BSC
rating
% of on target
award based
on BSC rating
% of annual
GRP awarded
195
180
165
165
165
165
180
165
165
165
200
175
150
175
100
175
200
175
150
150
390
315
248
289
165
289
360
289
248
248
Value of share-
based long-
term incentive
award (R000/
US$000)
R53,387.1
R23,762.6
US$1,561.7
R13,190.7
R6,887.8
R13,283.8
R21,325.2
R14,897.3
R10,577.9
R12,653.0
Executive
Neal Froneman
Charl Keyter
Chris Bateman
Dawie Mostert
Hartley Dikgale
Richard Stewart
Robert van Niekerk
Shadwick Bessit
Themba Nkosi
Wayne Robinson
118
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE VESTING OUTCOMES FOR 2016 CONDITIONAL (PERFORMANCE) SHARE AWARDS THAT VESTED IN MARCH 2019
The expected vesting outcome for the 2016 award of conditional (performance) shares in March 2019 was disclosed in the Integrated Report
2018, with the final outcome confirmed according to the information presented below.
When assessing the TSR element of the performance condition, 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, the TSR element of the performance
condition was evaluated at 0.0%. The ROCE exceeded the threshold return on equity for the period by 2.07% resulting in the ROCE element of
the performance condition being evaluated at 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, only 10.3% of the conditional shares awarded in March 2016 would have vested in 2019. However, given the very poor safety
outcomes during the first part 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, only 8.24% of the conditional shares
awarded in March 2016 vested in March 2019.
VESTING OUTCOMES FOR 2017 CONDITIONAL (PERFORMANCE) SHARE AWARDS VESTING IN MARCH 2020
Over the three-year performance period, Sibanye-Stillwater delivered a total shareholder return of 29.8% per annum, which was superior to
four of the companies in the peer group. As a result, Sibanye-Stillwater is adjudged to have yielded a higher return than 41.9% of the market
capitalisation of the peer group, which yields a performance condition of 22.8%.
The return on capital employed over the 2017, 2018 and 2019 financial years was 11.7%, which exceeded the cost of equity of 8.8% by 2.9%
giving a performance condition of 48.6%.
TSR performance condition (award date = 1 March 2017; vesting date = 1 March 2020)
100
50
)
%
d
e
s
i
l
a
u
n
n
a
(
R
S
T
0
0
AMS
IMP
NHM
GFI
EXX
HAR
ARI
ANG
20
40
60
Cumulative percentage
80
100
100
80
60
40
20
0
)
%
(
n
o
i
t
i
d
n
o
c
e
c
n
a
m
r
o
f
r
e
P
Peer Group TSR (market cap weighted)
Performance condition curve
Sibanye-Stillwater position
Element
TSR
ROCE
Overall
Weight (%)
Outcome (%)
70
30
22.8
48.6
30.6
As a result, by combining these components using the approved weightings, the overall performance condition resulted in 30.6% of the shares
awarded in March 2017 vesting to participants.
There were no significant ESG failures during the year.
Sibanye-Stillwater Integrated Report 2019 119
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
REMUNERATION REPORT CONTINUED
EXECUTIVE DIRECTORS AND PRESCRIBED OFFICERS’ EQUITY-SETTLED INSTRUMENTS
The tables below present the details of equity-settled awards made under share-based incentive schemes in 2019 and in prior years that have
not yet vested and the cash value of awards settled during the 2019 financial year.
Share equity summary
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
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
r
a
e
y
e
h
t
g
n
i
r
u
d
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
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
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
9
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
e
c
a
F
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
r
i
a
F
9
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
u
l
a
v
r
i
a
F
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
EXECUTIVE DIRECTORS
Neal Froneman Conditional Share Awards
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
946,489
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
2,092,222
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021
4,440,824
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
2,926,591
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
285,959
–
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
187,926
187,926
868,300
78,189
–
33,165,600
12,539 694
–
–
–
–
–
–
–
–
–
–
2,092,222
35,715,680
31,279 832
28,914,508
4,440,824
48,749,999
29,292 358
99,208,008
2,926,591
44,971,031
32,690 021
80,159,327
285,959
187,926
–
–
3,139,163
3,142,793
2,884,296
2,927,887
–
–
–
187,926
2,884,296
2,927,887
6,744,664
Total
Charl Keyter
Conditional Share Awards
7,765,494
3,302,443
868,300
552,074
9,647,563 171,510,065 114,800,471 215,026,508
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
430,082
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020 1 060,261
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021 2,261,131
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
1,276,041
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
140,114
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
92,012
92,013
394,554
35,528
–
15,070,325
5,697,990
–
–
–
–
–
–
–
–
–
–
1,060,261
18,099,396
15,851,467
14,652,807
2,261,131
24,821,996
14,914,765
50,513,667
1,276,041
19,584,558
14,253,378
34,950,763
140,114
92,012
–
–
1,538,128
1,539,907
1,412,106
1,433,547
–
–
–
92,013
1,412,106
1,433,563
3,302,347
Total
3,891,588
1,460,066
394,554
267,654
4,689 446
81,938,614
55,124,616 103,419,583
120
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
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
Chris Bateman
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
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
r
a
e
y
e
h
t
g
n
i
r
u
d
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
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
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
9
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
e
c
a
F
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
r
i
a
F
9
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
u
l
a
v
r
i
a
F
Total
Shadwick
Bessit
PS - 1 Sep 2017
1 Sep 2017
R0.00 1 Sep 2020
430,477
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021 1,810,808
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
1,638,388
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
136,632
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
96,341
96,341
2,377,917
1,831,070
–
–
–
–
–
–
–
–
–
–
430,477
8,536,615
9,767,702
5,669,382
1,810,808
19,878,498
11,944,371
40,453,451
1,638,388
25,145,815
18,300,794
44,875,447
136,632
96,341
–
–
1,499,905
1,501,639
1,478,632
1,500,993
–
–
–
96,341
1,478,632
1,500,993
3,457,678
232,973
3,976,014
58,018,097 44,516,492 94,455,959
Conditional Share Awards
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
259,954
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
568,821
PS - 1 Mar 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
–
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
533,319
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
98,620
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
40,315
40,315
238,480
21 474
–
9,108,968
3,444,048
–
–
–
–
–
–
–
–
–
–
–
–
568,821
9,710,167
8,504,172
7,861,106
737,114
8,091,805
4,862,114
16,467,127
49,288
424 945
335,651
1,434,281
533,319
8,185 336
5,957,173
14,607,607
98,620
40,315
–
–
–
40,315
1,082,621
1,083,873
618,754
618,754
628,108
628,108
1,446,905
–
–
Total
Hartley Dikgale Conditional Share Awards
1,713,797
613,949
238,480
160,409
1,928,857
37,841,350 25,443,247 41,817,027
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
200,237
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
603,742
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021
861,041
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
647,274
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
69,579
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
43,907
43,907
183,696
16,541
–
7,016,427
2,652,876
–
–
–
–
–
–
–
–
–
–
603,742
10,306,271
9,026,250
8,343,714
861,041
9,452,243
5,679,559
647,274
9,934 303
7,230,051
19,235,656
17,728,835
69,579
43,907
–
–
–
43,907
763,818
673,882
673,882
764,701
684,071
–
–
684,071
1,575,822
Total
Dawie Mostert
Conditional Share Awards
1,734,599
735,088
183,696
130,027
2,155,964
38,820,826 26,721,579 46,884,027
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
257,856
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
604,874
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 021
1,098,264
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
708,333
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
78,266
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
51,076
51,077
236,555
21 301
–
9,035,392
3,416,234
–
–
–
–
–
–
–
–
–
–
604,874
10,325,626
9,043,195
8 359,359
1,098,264
12,056,403
7,244,318
24,535,218
708,333
10,871,437
7,912,080
19,401,241
78,266
51,076
–
–
–
51,077
859,183
783,919
783,919
860,176
795,764
–
–
795,780
1,833,154
Total
2,039,260
810,486
236,555
150,643
2,462,548
44,715,879 30,067,547 54,128,972
Sibanye-Stillwater Integrated Report 2019 121
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
REMUNERATION REPORT CONTINUED
Share equity summary continued
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
8
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
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
Themba Nkosi Conditional Share Awards
PS - 1 Sep 2016
1 Sep 2016
R0.00 2 Sep 2019
108,941
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
540,941
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021
883,240
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
662,698
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
72,035
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
43,635
43,635
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
r
a
e
y
e
h
t
g
n
i
r
u
d
76,259
–
–
–
–
–
–
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
s
t
n
e
m
u
r
t
s
n
i
d
e
l
t
t
e
s
-
y
t
i
u
q
E
9
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
e
c
a
F
e
t
a
d
d
r
a
w
a
t
a
e
u
l
a
v
r
i
a
F
9
1
0
2
r
e
b
m
e
c
e
D
1
3
t
a
e
u
l
a
v
r
i
a
F
–
–
–
–
32,682
3,850,000
1,443,316
1,172,957
540,941
9,234,225
8,087,352
7,475,805
883,240
9,695,934
5,825,985
19,731,582
662,698
10,171,037
7,402,337
18,151,298
72,035
43,635
–
–
790,773
791,688
669,709
679,833
–
–
–
43,635
669,709
679,833
1,566,060
Total
Wayne
Robinson
Total
Richard
Stewart
1,605,157
749,968
76,259
115,670
2,163,196
35,081,388
24,910,343
48,097,702
Conditional Share Awards
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
277,857
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
678,762
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021 1,055,500
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
792,701
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
70,692
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
52,984
52,984
254,904
22,953
–
9,736,279
3,681,217
–
–
–
–
–
–
–
–
–
–
678,762
11,586,960
10,147,864
9,380,491
1,055,500
11,586,956
6,962,241
23,579,870
792,701
12,166,308
8,854,470
21,712,080
70,692
52,984
–
–
776,034
776,931
813,199
825,491
–
–
–
52,984
813,199
825,491
1,901,596
2,082,811
898,669
254,904
146,629
2,579,947
47,478,935
32,073,705
56,574,037
Conditional Share Awards
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
271,894
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
810,279
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021 1,260,423
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
832,221
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
85,900
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
54,295
54,296
249,433
22,461
–
9,527,335
3,602,232
–
–
–
–
–
–
–
–
–
–
810,279
13,832,016
12,114,094
11,198 056
1,260,423
13,836,534
8,313,943
28,157 850
832,221
12,772,856
9,295,909
22,794 533
85,900
54,295
–
–
942,982
944,072
833,329
845,916
–
–
–
54,296
833,329
845,932
1,948,683
Total
Robert van
Niekerk
Conditional Share Awards
2,428,496
940,812
249,433
162,656
2,957,219
52,578,381
35,962,097
64,099,122
PS - 1 Mar 2016
1 Mar 2016
R0.00 1 Mar 2019
298,976
PS - 1 Mar 2017
1 Mar 2017
R0.00 2 Mar 2020
795,750
PS - 1 Sep 2017
1 Sep 2017
R0.00 1 Sep 2020
116,143
PS - 1 Mar 2018
1 Mar 2018
R0.00 1 Mar 2021 1,773,860
–
–
–
–
PS - 1 Mar 2019
1 Mar 2019
R0.00 1 Mar 2022
–
1,169,008
Forfeitable Share Awards
BS - 1 Mar 2018
1 Mar 2018
R0.00 2 Sep 2019
136,410
BS - 1 Mar 2019
1 Mar 2019
R0.00 2 Dec 2019
BS - 1 Mar 2019
1 Mar 2019
R0.00 1 Sep 2020
–
–
–
69,955
69,956
274,278
24,698
–
10,476,329
3,961 024
–
–
–
–
–
–
–
–
–
–
–
–
795,750
13,583,997
11,896,886
10,997 265
116,143
2,303,196
2,635,328
1,529 603
1,773,860
19,472,894
11,700,656
39,628 032
1,169,008
17,941,833
13,057,819
32,019,129
136,410
69,955
–
–
1,497,462
1,499,193
1,073,671
1,089,899
–
–
–
69,956
1,073,671
1,089,914
2,510,721
Total
3,121,139
1,308,919
274,278
231,063
3,924,717
67,423,052
46,930,720
86,684,751
122
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
NON-EXECUTIVE DIRECTOR FEES (R000)
Fees and reimbursements paid in respect of directors’ 2019 Board and committee duties are presented in the table below reflecting the total
amount paid to each non-executive director (inclusive of 15% VAT where applicable on top of the ‘base fee’) as approved by shareholders.
Non-executive director
Barry Davison*
Harry Kenyon-Slaney*
Jerry Vilakazi
Keith Rayner
Nkosemntu Nika
Rick Menell
Savannah Danson
Sello Moloko*
Sue van der Merwe
Tim Cumming
Vincent Maphai*
Total
(R000)
Directors’ fees
Committee
fees
Expenses
reimbursed
465
1,103
1,148
1,148
1,148
1,148
1,148
1,618
1,148
1,148
944
301
596
418
902
702
958
702
0
702
796
0
12,167
6,080
0
0
0
114
0
0
0
0
0
121
0
234
Total
766
1,700
1,567
2,164
1,850
2,107
1,850
1,618
1,850
2,065
944
18,481
* Sello Moloko resigned from the Board with effect from 30 September 2019; Vincent Maphai was appointed to the Board with effect from 1 June
2019 as chairman designate and assumed the role of chaiman with effect from 1 October 2019; Barry Davison retired from the Board with effect
from 28 May 2019; Harry Kenyon-Slaney was appointed to the Board with effect from 16 January 2019.
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. As with the executive directors, a global comparator group was used, according to the
methodology set out in part 2.
Based on the benchmarking, two categories sit below the median and outside of the tolerance band: the Chairman and the Chair of the
Remuneration Committee.
It was also agreed that a further review should be conducted regarding the referencing of fees paid to the Chair of the Remuneration
Committee. This review confirmed that chairs of Remuneration Committee fees are typically set at a level between the Audit Committee chair
and the chairs of the other Board committees except for the Risk Committee chair who is typically remunerated at a comparable level with
the Remuneration Committee chair. In Sibanye-Stillwater’s case, it was determined that the Risk Committee chair may not be a representative
reference point as fewer meetings are scheduled each year than for the other committees.
In line with King IV and its corporate governance principles, a proposal will also be made in respect of suitable fees for a nominated fee for a
lead independent non-executive director to be put forward for shareholder approval at the AGM in May. The lead independent non-executive
director fee is generally at premium of 20% – 60% of the average aggregate non-executive director fee, and 40% – 70% of the Chairman’s
total fee. There is a very wide range of actual percentages depending on the workload of the lead independent non-executive director and
the Chair and the rest of the non-executive directors but we are of the view that these ranges are a reasonable basis for benchmarking. The
Remuneration Committee decided to set the lead independent non-executive director’s fee on an all-inclusive basis, similar to that of the
Chair, rather than on the basis of fees for the separate roles like the other non-executive directors s. With the relatively low Chairman’s fee
and relatively high non-executive director fees, setting the lead independent non-executive director fee at around 20% premium to the non-
executive director fees, or 60% – 70% of the Chair fee was deemed to be reasonable, provided that the Chairman’s fee is increased as per the
recommendations discussed above.
Based on the suggested approach discussed above and the results of the comparator group benchmarking as well as other deliberations, the
following proposals are made:
Chairman’s fee: A proposed fee of R3.2 million (excluding VAT) which would place the fee at a premium of about 5% above our benchmark
measure after including a 5% cost of living increase.
Chair of RemCo: A proposed increase of 15% on top of CPI for an overall increase of 19% would provide a reasonable fit to the reference
points of the Audit Committee chair and chairs of the other committees.
Lead independent director: A proposed all-inclusive fee of R2.15 million (excluding VAT) seems appropriate – which would be a 15% increase on
his current proposed fees for 2020, a premium of about 25% over the ‘average’ non-executive director’s fees for 2020 and representing 58% of
the Chairman’s proposed fee for 2020.
Sibanye-Stillwater Integrated Report 2019 123
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION REMUNERATION REPORT CONTINUED
Fees for internationally domiciled non-executive directors: A proposed per diem cash allowance of R20,000 per day for each day they are away
from their home country while on Sibanye-Stillwater business, plus one additional day for ‘travel time’. Given that the non-executive directors
to whom this allowance would apply would already be paid their Board and committee fees for the days they are away on company business,
this amount should be seen as an ‘extra over’ and would not be comparable to a per diem charge as if he/she was a senior consultant charging
for their time. This allowance will only apply to those days during which the non-executive director is attending a committee meeting, a Board
meeting, a strategy meeting or any other formal meetings with Sibanye-Stillwater management or visits to the company’s operations in support
of their non-executive director responsibilities. To that number of days can be added one additional day to allow for ‘travel time’.
All other non-executive directors: A proposed 4% annual increase to apply to all other non-executive director fees being the same increase as
was paid to prescribed officers and is reflective of cost of living inflation based on the year on year change in the South African CPI index as at
the end of December 2019 as published by the South African Reserve Bank.
The proposed fees are set out in Special Resolutions 1 and 2 in the Notice of AGM.
SPECIAL RESOLUTION NUMBER 1
Approval for the remuneration of non-executive directors
“Resolved that,
a) in terms of section 66(9) of the Act, the following remuneration, quoted exclusive of VAT and to which VAT at the applicable rate will be added
where applicable, shall be payable to non-executive directors of the company with effect from 1 June 2020 in respect of their services as directors:
2020 fee converted
to US$ at an
illustrative
Per annum
2019
2020 % yoy increase
rate of R15/US$
Chair of the Board, who is not eligible to receive fees in respect
of committee chairmanship or membership
Lead independent director, who is not eligible to receive fees in
respect of committee chairmanship or membership
Chair of the Audit Committee
Chair of the Remuneration Committee
Chairs of the Nominating and Governance Committee, Risk
Committee, Social, Ethics and Sustainability Committee, and
Safety and Health Committee
Members of the Board
Members of the Audit Committee
Members of the Nominating and Governance Committee,
Risk Committee, Remuneration Committee, Social, Ethics and
Sustainability Committee and Safety and Health Committee
R1,926,693
R3,200,000
N/A
R2,150,000
R368,642
R227,350
R383,387
R270,547
R227,350
R236,444
R1,018,579
R1,059,322
R191,386
R199,042
R143,860
R149,614
66.1
N/A
4.0
19.0
4.0
4.0
4.0
4.0
US$213,333
US$143,333
US$25,559
US$18,036
US$15,763
US$70,621
US$13,269
US$9,974
b) a per diem allowance of R20,000 (US$1,333 at an illustrative exchange rate of R15/US$) be paid to non-SA resident non-executive directors in
respect of each day for which they are required to be away from their home country to attend a committee meeting, a Board meeting or visits
to the company’s operations in support of their director responsibilities, with an additional day to be allowed for travel time.”
Special Resolution Number 1 is proposed to enable the company to comply with the provisions of sections 65(11)(h), 66(8) and 66(9) of the Act,
which stipulate that remuneration to directors for their service as directors may be paid only in accordance with a special resolution approved
by shareholders. The Board, through the Remuneration Committee, proposes an increase of 4%, which is in line with the year on year increase
in the Consumer Price Index in South Africa as at the end of December 2019. While the fee scales are quoted exclusive of VAT, VAT at the
applicable rate will be included in the amounts paid to non-executive directors.
124
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SPECIAL RESOLUTION NUMBER 2
Approval for lead independent director recompense for period since appointment
“Resolved that the lead independent director, in respect of the period from 14 February 2020 being the date of appointment as lead
independent director to 31 May 2020, receive a balancing payment of R58,726 excluding VAT in addition to the Board member and
committee fees already paid or that will fall due to him, such that fees received in respect of that period is at a rate de-escalated by 4% from
the 2020 fee scale presented in Special Resolution Number 1, thereby remunerating him at what a 2019 rate would have been for a lead
independent director.”
Mr Rick Menell was appointed as lead independent director with effect from 14 February 2020. Since no fee scale was available for a lead
independent director, he continued to be remunerated at the rate for a normal Board member and in respect of the committees he served on.
Special resolution Number 2 is proposed such that Mr Menell can be remunerated at the effective rate for a lead independent director that
would have been applicable in 2019 based on de-escalation from the proposed fee scale for 2020 for the period from appointment until the fee
scale presented in Special Resolution Number 1 is applicable.
NON-BINDING VOTE ON IMPLEMENTATION REPORT
The implementation report, as set out here in Part 3 of this remuneration report, will be tabled for a separate non-binding advisory vote at the AGM.
Sibanye-Stillwater Integrated Report 2019 125
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SECTION
04
DELIVERING ON
OUR STRATEGY AND
OUTLOOK
Our mining
improves lives
127 Delivering value from our operations and projects
138 Empowering our workforce
164 Commitment towards safe production
174 Health and well-being and occupational hygiene
190 Social upliftment and community development
202 Minimising our environmental impact
226 Harnessing technology
232 Mineral resources and reserves – a summary
246 Four-year statistical review
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
I
S
U
S
E
V
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
I
R
E
V
I
L
E
D
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
126
Sibanye-Stillwater Integrated Report 2019
DELIVERING VALUE FROM OUR OPERATIONS AND PROJECTS
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
CHALLENGES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
Ground conditions and
diesel particulate matter
issues encountered at Blitz
at the US PGM operations
during the year
Building up at the SA
gold operations after a
five-month strike, although
it was successful
Solid operational recovery in
H2 2019 following strike and
other operational disruptions
in H1 2019
Successful integration and
restructuring at the Marikana
operation – R1.2 billion of
annualised synergies by end
2020 (64% higher than forecast)
Continued improvement
in Group safe production
including zero fatalities at SA
gold operations (+11 million
fatality free shifts)
East Boulder mine tailings at the US PGM operations
Sibanye-Stillwater Integrated Report 2019 127
Sibanye-Stillwater Integrated Report 2019 127
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
DELIVERING VALUE FROM OUR OPERATIONS AND PROJECTS CONTINUED
S
N
O
I
T
A
R
E
P
O
R
U
O
F
O
N
O
I
T
A
C
O
L
Marathon
Denison
US PGM
operations
Rio Grande
Altar
SA PGM
operations
and projects
SA gold
operations
and projects
US PGM OPERATIONS
SA PGM OPERATIONS
Our mining operations, in Montana in the US, are:
• East Boulder (100%, managed)
• Stillwater (including Blitz) (100%, managed)
• The Columbus Metallurgical Complex
(100%, managed)
PROJECTS
In the Americas:
• Marathon PGM-copper project in Ontario, Canada
(55.58%, non-managed)
• Altar and Rio Grande copper-gold projects in
north-west Argentina (100%, non-managed)
• Denison PGM project in Ontario, Canada
(80%, non-managed)
In South Africa:
PGM
• Hoedspruit (74%), Zondernaam (74%) and three
exploration-stage PGM properties – Akanani
(93.13%), Limpopo (45.3%-95.25%) – acquired
as part of the Lonmin transaction, all in Limpopo
province (managed) and Blue Ridge (50%, managed)
GOLD
• Burnstone (100%, managed)
• Southern Free State (SOFS) (100%, managed)
In South Africa, on the western limb of the Bushveld Complex,
our mining operations are:
• Kroondal (attributable 50% interest in PSA agreement,
managed)
• Rustenburg (100%, managed)
• Marikana (acquired June 2019, 95.25%, managed)
• Platinum Mile (91.7%), a retreatment facility that processes
tailings to recover residual PGMs
Processing facilities include concentrators and, following the
Lonmin acquisition, a smelter complex together with base and
precious metals refineries.
In Zimbabwe, on the Wezda Complex, on the southern portion
of the Great Dyke:
• Mimosa (50%), with the remaining 50% held by Impala
Platinum Holdings Limited (Implats)
SA GOLD OPERATIONS
Our mining operations situated on the West Rand of the
Witwatersrand Basin, are:
• Driefontein (100%, managed)
• Kloof (100%, managed)
• Cooke (100%, managed)
And in the southern Free State goldfields:
• Beatrix (100% managed)
• Attributable interest in DRDGOLD
(38.05% non-managed)
Post year-end, Sibanye-Stillwater increased its interest to 50.1% in
DRDGOLD, a leader in the retreatment of gold tailings.
128
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
OVERVIEW OF THE OPERATIONAL PERFORMANCE FOR
THE YEAR
US PGM OPERATIONS
The US PGM operations reported 2E PGM production of
593,974oz which was in line with revised 2019 annual guidance.
The operational issues which affected the East Boulder mine and
Stillwater West mine during 2019 were successfully addressed
during the remaining months in 2019, with both operations
achieving normalised production run rates by year-end. Challenging
ground conditions were encountered at Blitz during H2 2019,
with fall of ground (FOG) conditions leading to orders from the US
Mine Safety and Health Administration (MSHA) to suspend mining
activities in specific areas, thereby restricting stope access and
negatively impacting productivity. The adoption of special ground
control measures temporarily impaired advance rates and resulted
in reduced stope flexibility. Significant progress has been made
on redesigning appropriate support in these areas. Concentrated
development activities on the ramp system in the Blitz project
area also resulted in increased diesel particulate matter (DPM)
emissions beyond the capabilities of installed ventilation in certain
development areas, which further impacted output.
While the ground control and DPM challenges have largely
been addressed, production and advance rates remain behind
plan, delaying the planned production build-up at Blitz by
approximately eight months. With the ramp up commencing in
Q4 2020, the Fill the Mill (FTM) project remains on track to deliver
40,000 2Eoz per annum. At spot prices, the project is expected to
yield an NPV in excess of US$400million.
The 53% increase in the palladium price during 2019 to
US$1,916/2Eoz, drove a 38% increase in the average 2E PGM
basket price for 2019 to US$1,403/2Eoz (palladium comprises
78% of the 2E basket price, with platinum comprising 22%). As
a result, adjusted EBITDA from the US PGM operations increased
by 61% year-on-year to US$504 million. The 2E PGM basket price
has risen a further 24% during 2020 to over US$2,100/2Eoz,
which combined with the forecast increase in 2E PGM production
to between 660,000 2Eoz and 700,000 2Eoz, suggests
significantly stronger financial delivery for 2020.
SA PGM OPERATIONS
The consistent operational delivery from the SA PGM operations
continued in 2019, despite the integration and restructuring of
the Marikana operation, the PGM wage negotiations, and the
impact of load shedding towards the end of the year. 4E PGM
production of 1,608,332 4Eoz (including the Marikana operation
for seven months since acquisition), was 37% higher year-on-year,
with 4E PGM production (excluding the Marikana operation) of
1,100,734 4Eoz above the upper end of annual guidance.
Following a detailed three-month review of the Marikana
operation, a proposed restructuring to create an operating foot-
print with a more sustainable cost structure, was announced
in September 2019. Mandatory consultations with affected
stakeholders in terms of Section 189A (S189) of the Labour
Relations Act, 66 of 1995 (LRA) were successfully concluded in
early December 2019, with the consequent restructuring effected
by early January 2020 without any related operational disruption.
Approximately 3,195 jobs were retained as a result of the
operational review and S189 consultations, with 1,924 employees
exiting (normal attrition) during the period. Three generation 1
shafts (East 1, West 1 and Hossy) have reached the end of their
reserve lives, resulting in the necessary retrenchment of 1,142
employees and a 1,709 reduction in contractors.
While integration of the service functions is ongoing into 2020,
the initial estimate of R730 million in annual synergies is already
proving to be conservative. Synergies achieved to date imply an
annualised run rate of R1,200 million by the end of 2020, which
is 64% higher than our initial estimates.
SA GOLD OPERATIONS
The SA gold operations produced 29,009kg (932,659oz)
(Including DRDGOLD) for 2019 and 23,427kg (753,194oz)
(excluding DRDGOLD) for 2019. Normalised production run rates
for the reduced operating footprint at the SA gold operations
were achieved during Q4 2019, following the conclusion of the
AMCU strike in April 2019 and a steady production build-up.
The safe production build-up at the West Rand operations, was
hampered by heightened levels of seismicity, as ground stresses
which accumulated during the five-month strike were released,
significantly affecting several high grade areas at the Kloof
operation in particular. Nonetheless, the operating and financial
performance for H2 2019 was significantly better than H1 2019,
with production increasing by 71% to18,268kg (587,908oz) and
AISC declining by 27% to R636,405/kg (US$1,347/oz).
DRDGOLD performed strongly during 2019, benefitting
from higher volumes of high-grade surface material from the
Driefontein surface facilities, to produce 5,582kg (179,465oz) of
gold at an AISC of R514,932kg (US$1,108/oz) yielding adjusted
EBITDA of R854 million (US$59 million) for 2019.
US PGM operations: production and recycling (ounces)
Mined 2E production
Stillwater
East Boulder
Total mined
Recycling 3E1 at Columbus
Metallurgical Complex
PGM fed
PGM sold
PGM tolled returned
1 Recycling production includes rhodium
2019
2018
376,395
364,167
217,579
228,441
593,974
592,608
853,130
686,592
750,087
540,546
126,758
144,172
Sibanye-Stillwater Integrated Report 2019 129
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION DELIVERING VALUE FROM OUR OPERATIONS AND PROJECTS CONTINUED
SA and US PGM operations (2019)
Total PGM
operations
SA PGM operations
US PGM
operations
Total
Marikana
Kroondal
Mimosa
Platinum
Mile
Rustenburg
Stillwater
Production
(attributable)1
Ore milled
Underground
Surface
Plant head grade
Underground
Surface
Plant recoveries
Underground
Surface
Yield
Underground
Surface
PGM production
(4E/2E)
Underground
Surface
PGM sales (4E/2E)
Price and costs2
Average PGM basket
price received3
000t
000t
000t
g/t
g/t
g/t
%
%
%
g/t
g/t
g/t
000oz
000oz
000oz
000oz
R/oz
US$/oz
Adjusted EBITDA margin4 %
All-in sustaining cost5
All-in cost5
Capital expenditure2
Ore reserve development
Sustaining capital
Growth projects
Total
R/oz
US$/oz
R/oz
US$/oz
Rm
Rm
Rm
Rm
US$m
33,035
18,540
14,495
31,624
17,129
14,495
2.70
4.12
0.89
76.78
85.22
26.52
2.07
3.51
0.23
2,202
2,093
109
1,884
20,090
1,389
30
13,854
958
14,843
1,026
2,065
1,525
2,050
5,641
390
2.18
3.28
0.89
72.44
82.93
26.52
1.58
2.72
0.23
1,608
1,499
109
1,305
19,994
1,383
32
14,857
1,027
14,875
1,029
1,029
1,203
15
2,248
155
6,793
4,717
2,076
2.78
3.61
0.91
80.06
85.43
31.65
2.23
3.08
0.29
508
468
39
472
20,601
1,425
22
17,735
1,226
17,756
1,228
529
660
0
1,189
82
4,060
4,060
0
2.46
2.46
0
82.53
82.53
0
2.03
2.03
0
265
265
0
265
1,357
1,357
0
3.58
3.58
0
75.26
75.26
0
2.69
2.69
0
118
118
0
118
8,035
11,379
0
8,035
0.73
0
0.73
10.89
0
10.89
0.08
0
0.08
21
0
21
21
6,995
4,384
2.59
3.48
1.16
73.74
82.82
30.27
1.91
2.88
0.35
698
648
49
431
1,411
1,411
0
14.29
14.29
0
91.61
91.61
0
13.09
13.09
0
594
594
0
578
20,253
1,401
43
18,640
1,289
43
17,583
1,216
21
19,305
1,335
37
20,287
1,403
55
10,771
12,058
11,006
14,429
11,337
745
834
761
998
10,771
12,058
11,658
14,432
745
0
213
0
213
15
834
0
343
0
343
24
806
0
13
13
27
2
998
501
316
2
819
57
784
14,763
1,021
1,036
322
2,035
3,393
235
Average exchange rate in 2019 was R14.46/US$
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 and capital expenditure 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
130
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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 expenditure2
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
13,657
1,031
23
9,904
748
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
13,838
1,045
19
10,417
787
10,897
10,472
823
1,477
725
1,632
3,833
290
791
478
464
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 and capital expenditure excludes 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 for 2018 include corporate project expenditure to the value of R71 million (US$5 million) – the
majority of which related to the Altar and Marathon projects
Sibanye-Stillwater Integrated Report 2019 131
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION DELIVERING VALUE FROM OUR OPERATIONS AND PROJECTS CONTINUED
SA gold operations (2019)
Production
Ore milled
Underground
Surface
Yield
Underground
Surface
Gold production
Underground
Surface
Gold sales
Price and costs
Gold price received
Adjusted EBITDA margin1
All-in sustaining cost2
All-in cost2
Capital expenditure
Ore reserve development
Sustaining capital
Growth projects3
Total
Unit
000t
000t
000t
g/t
g/t
g/t
kg
000oz
kg
000oz
kg
000oz
kg
000oz
R/kg
US$/oz
%
R/kg
US$/oz
R/kg
US$/oz
Rm
Rm
Rm
Rm
US$m
Total
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
41,498
4,084
37,414
0.70
4.85
0.25
29,009
933
19,801
637
9,208
296
28,743
924
906
898
8
5.69
5.74
0.38
5,155
166
5,152
166
3
0
5,096
164
7,357
1,489
5,868
1.48
5.96
0.34
10,863
349
8,872
285
1,991
64
10,829
348
2,489
1,622
867
2.46
3.54
0.43
6,118
197
5,745
185
373
12
5,978
192
4,328
26,418
75
0
4,253
26,418
0.30
0.43
0.30
1,291
42
32
1
1,259
40
1,288
41
0.21
0
0.21
5,582
179
0
0
5,582
179
5,552
179
648,662
648,175
628,728
635,430
643,168
652,197
1,395
(5)
1,394
(40)
1,352
(3)
1,367
(1)
1,383
(43)
1,403
24
717,966
1,016,228
722,698
685,346
520,497
514,932
1,544
2,186
1,555
1,474
1,120
1,108
735,842
1,016,228
732,755
685,698
520,497
521,956
1,583
2,186
1,576
1,475
1,120
1,123
1,337
514
215
2,066
143
513
163
0
676
47
590
238
109
937
65
233
71
2
306
21
0
0
0
0
0
0
43
39
82
6
Average exchange rate in 2019 was R14.46/US$
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 for 2019 include corporate project expenditure to the value of R65 million (US$5 million) – the majority of which was
related to the Burnstone project
132
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA gold operations (2018)
Production
Ore milled
Underground
Surface
Yield
Underground
Surface
Gold production
Underground
Surface
Gold sales
Price and costs
Gold price received
Adjusted EBITDA margin1
All-in sustaining cost2
All-in cost2
Capital expenditure
Ore reserve development
Sustaining capital
Growth projects3
Total
Unit
000t
000t
000t
g/t
g/t
g/t
kg
000oz
kg
000oz
kg
000oz
kg
000oz
R/kg
US$/oz
%
R/kg
US$/oz
R/kg
US$/oz
Rm
Rm
Rm
Rm
US$m
Total
Driefontein
Kloof
Beatrix
Cooke
DRDGOLD
27,199
5,811
21,388
1.35
5.21
0.30
36,600
1,177
30,263
973
6,337
204
36,489
1,173
3,143
1,634
1,509
3.05
5.48
0.41
9,573
308
8,952
288
621
20
9,573
308
7,108
1,821
5,287
2.13
7.11
0.44
15,253
490
12,940
416
2,313
72
15,164
488
2,952
2,282
670
2.89
3.63
0.37
8,536
275
8,291
267
245
8
8,536
275
4,092
74
4,018
0.33
1.08
0.33
1,394
45
80
3
1,314
42
1,346
43
9,904
0
9,904
0.19
0
0.19
1,844
59
0
0
1,844
59
1,870
60
535,929
533,918
536,250
539,046
550,223
560,160
1,259
7
1,254
(13)
1,259
21
1,266
14
1,292
(50)
1,316
3
557,530
707,375
489,587
521,884
476,003
569,893
1,309
1,661
1,150
1,226
1,118
1,338
583,409
707,417
498,938
522,083
476,003
732,086
1,370
1,661
1,172
1,226
1,118
1,719
2,054
546
648
3,248
245
817
228
1
1,046
79
840
221
142
1,202
91
397
83
2
481
36
0
0
0
0
0
0
15
303
318
24
Average exchange rate in 2018 was R13.24/US$
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 for 2018 include corporate project expenditure to the value of R201 million (US$15 million) – the majority of which
was related to the Burnstone project
Sibanye-Stillwater Integrated Report 2019 133
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION DELIVERING VALUE FROM OUR OPERATIONS AND PROJECTS CONTINUED
FUTURE FOCUS – 2020 OPERATIONAL OUTLOOK
The production guidance for the Group, provided to the market
on 19 February 2020 (available at https://www.sibanyestillwater.
com/news-investors/reports/quarterly/), is expected to be
adversely affected by the impact of the COVID-19 pandemic on
our SA and US operations.
The SA underground mines were temporarily halted for an initial
21 days from 27 March 2020 when the SA government instated
a lockdown to slow down the spread of the pandemic. This
period was then extended to the end of April 2020. Approval
was subsequently received from the DMRE for limited mining
and processing activities to resume from 14 April 2020, subject
to agreed protocols being implemented to reduce COVID-19
related health and safety risks..
At the US PGM operations, we have significantly reduced the
number of people at our sites in order to proactively manage the
COVID-19 threat in line with the requirements from local health
authorities, while maintaining production from current operations.
Specific actions for the US operations include:
• demobilising contractors involved in growth capital activities
• facilitating remote work for personnel that are not required on site
• prohibiting face-to-face contact with external parties and restricting
site access to employees
The Blitz project accounts for the majority of contract workers
at the US PGM operations and these decisions are likely to
temporarily impact growth from Blitz in 2020 and delay the
project’s development schedule. In addition, we have received
a force majeure notice from the manufacturer of the mills to be
used in the expansion of the concentrator. Further detail will be
provided once we have concluded a full impact assessment.
Our US PGM operations are a ‘critical infrastructure industry’
as defined by the Cybersecurity and Infrastructure Agency,
with PGMs essential components of many chemical, medical
and biochemical applications. This includes the use of PGMs in
many drugs used to treat a wide range of cancers, pacemaker
electrodes, catheters, guides for arthroscopic surgery and in
self-rescuer masks used by first responders. Platinum is also an
essential catalyst in petrochemical plants necessary for energy
production. As the only primary PGM producer in the US,
we will endeavour to maintain current production from our
Stillwater and East Boulder mines, while maintaining throughput
through our Columbus Metallurgical Complex in order to
provide PGMs to the critical sectors mentioned above. Aside
from the Blitz project activities, our other operations are largely
unaffected by the aforementioned decisions.
SUMMARY OF PROJECTS
Projects in the Americas
During 2019 the Group advanced its strategy of entering into
strategic relationships with focused exploration companies in
order to advance these assets.
Altar
The Altar project, located within San Juan province, Argentina, is
an advanced stage porphyry copper-gold exploration project.
Aldebaran Resources Inc (Aldebaran), a subsidiary of Regulus
Resources Ltd, has entered into a JV and option agreement
with Stillwater Canada LLC, an indirect subsidiary of Sibanye-
Stillwater, to acquire up to an 80% interest in Peregrine Metals
Ltd (Peregrine), a wholly-owned subsidiary of Sibanye-Stillwater,
which owns the Altar copper-gold project. Sibanye-Stillwater also
retains an indirect exposure to all Aldebaran assets (including the
Rio Grande project) through its 19.9% shareholding in Aldebaran.
Aldebaran is the operator of the JV. As at 31 December 2019,
no earn-in on Altar had been effected and 100% of the Mineral
Resource is reported.
Aerial view of the Precious Metals Refinery in SA
134
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Rio Grande
The Rio Grande project (owned and managed by Aldebaran) is
a copper-gold porphyry deposit with an associated iron oxide
copper-gold (IOCG) style alteration, exploration stage project
located in north-western Argentina. The Mineral Resources of the
Rio Grande deposit are reported on an attributable basis based on
the Group’s 19.9% shareholding in Aldebaran.
Marathon
The Marathon project is a PGM-gold-copper project, situated
10km north of Marathon, Ontario province, Canada.
During 2019, Sibanye-Stillwater concluded an acquisition agreement
with Generation Mining Limited (Gen Mining) through which Gen
Mining acquired a 51% interest in the Marathon project and formed
an unincorporated JV with Stillwater Canada Inc, in exchange for
a cash consideration of 3.0 million Canadian dollars (CAD$) and a
12.9% equity interest in Gen Mining. Gen Mining has the option to
earn up to an 80% interest through spending of CAD$10 million
and preparing a preliminary economic assessment within four years
of the property acquisition date, marked as 11 July 2019.
Gen Mining is the operator of the JV and has assumed all
liabilities of the property. For more information, please refer to
the official media release at
https://thevault.exchange/?get_
group_doc=245/1561530392-sibanyegeneration-mining-
agreement-marathon-project-26june2019.pdf
Denison
The Denison project was acquired as part of the Lonmin
transaction and forms part of the South African PGM segment.
It is reported under the US PGM segment due to its geographical
location. The Denison project is a PGM exploration project on
the Sudbury Igneous Complex (SC), approximately 30km to the
west-southwest of the town of Sudbury and includes two zones
adjacent to the old workings of the Crean Hill mine (the 109FW
and 9400 zones).
Geologists measuring the PGM stope face
Gold pour at the SA gold Kloof plant
Sibanye-Stillwater Integrated Report 2019 135
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION DELIVERING VALUE FROM OUR OPERATIONS AND PROJECTS CONTINUED
During 2019, Sibanye-Stillwater acquired the entire shareholding
in Lonmin and thereby by implication acquired the Denison
project, which was 100% held by Loncan, a subsidiary of
Lonmin. During 2019, Loncan entered into a binding letter
agreement with Wallbridge Mining whereby Loncan appointed
Wallbridge as the operator of the revised Denison property to
raise the necessary funding, implement the business plan and
manage the daily operations of Loncan. At the end of October
2019, Loncan issued Wallbridge with 20% of Loncan (current
shareholding: Sibanye-Stillwater 80% and Wallbridge 20%).
For more information, please refer to the official media release
at
https://www.wallbridgemining.com/s/press-releases.
asp?ReportID=860246&_Type=Press-Releases&_Title=Wallbridge-
earns-20-Ownership-of-Lonmin-Canada-Inc-Through-
Operatorship-Agr
SA PGM projects*
The SA PGM operations are supported by a pipeline of five projects,
which are at varying stages of development. The projects – Blue
Ridge, Zondernaam, Hoedspruit, Akanani and Limpopo – are all
located on the BIC in South Africa and present significant optionality
to sustain and/or enhance the current production profile. During
the year, the Group refined its portfolio by exiting from certain low
potential projects (Loskop and Vygenhoek), while advancing studies
into Blue Ridge, Akanani, Hoedspruit and Limpopo.
Blue Ridge
This 50:50 JV with Imbani Platinum is situated approximately
30km southeast of Groblersdal on the Eastern Limb of the
BIC. Sibanye-Stillwater owns a 50% stake in the JV following
its acquisition of Aquarius in 2016. The mine, constructed in
2007, was placed on care and maintenance in 2011 on the
back of depressed PGM prices, and has remained on care and
maintenance ever since.
Akanani
Akanani is an advanced stage exploration project located on
the Northern Limb of the BIC, in the Limpopo province of South
Africa, targeting the Platreef orebody. The project was acquired
by Sibanye-Stillwater in 2019 as part of the Lonmin transaction.
Sibanye-Stillwater has an effective 93.13% effective interest
in Akanani Mining (Pty) Ltd, via its shareholding in Western
Platinum Ltd.
Hoedspruit
Hoedspruit Platinum Exploration is a prospecting right in the
Rustenburg area, situated directly adjacent to the Rustenburg
operation’s mining right, earmarked for inclusion into the
Rustenburg mining right. The application process is in progress.
Sibanye-Stillwater has an effective 74% interest, while 26% is
held by Watervale (Pty) Ltd, an empowerment company controlled
by Savannah Resources (Pty) Ltd.
Limpopo
The Limpopo project is located on the northern sector of the
Eastern Limb of the BIC in the Limpopo province. The larger
project area consists of three contiguous mineral titles areas,
namely Voorspoed, Dwaalkop and Doornvlei. It is centred on
the Baobab mining operation (located on the Voorspoed mining
right), which is currently under care and maintenance.
Sibanye-Stillwater has an effective 95.25% interest in the C&M
Baobab mine and the Doornvlei mining right. A total of 45.25%
of the Dwaalkop prospecting right is held by Mvelephanda
Resources (a wholly owned subsidiary of Northam Platinum Ltd).
* Greenfields projects which exclude projects such as K4 at the Marikana operation
The UG2 concentrator plant at the SA PGM operations
136
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Zondernaam
The Zondernaam project, a JV between Sibanye-Stillwater (74%)
and Bakgaga Mining (26%), is an early stage exploration project
situated along the northern part of the Eastern Limb of the BIC,
with limited drilling to date.
SA gold projects*
Burnstone
Burnstone is a shallow gold mine project in execution, situated
near Balfour in the Mpumalanga province, South Africa, about
80km south-east of Johannesburg. Burnstone is located in the
Highveld escarpment and is mostly surrounded by farms, game
farms and bushveld.
Sibanye-Stillwater acquired Burnstone in 2014. The feasibility
study (FS) was independently reviewed in 2015, finance was
approved in 2016 and development started in 2017. Development
was stopped in May 2018 due to economics at the time, and the
focus was on establishing underground engineering infrastructure
in preparation for mining production in 2021.
* These are greenfields projects which exclude the Kloof deepening project
Southern Orange Free State (SOFS) projects
The SOFS Bloemhoek and De Bron Merriespruit projects are
situated close to Virginia in the Free State province of South
Africa adjacent and contiguous to the Beatrix operation. SOFS is
situated in a semi-arid region with very flat topography covered
in agricultural land. No severe climatic occurrences that can
influence mining activities are present.
In 2014, Sibanye-Stillwater acquired 100% of Wits Gold. SOFS
formed part of this acquisition. The SOFS De Bron Merriespruit
project was at feasibility study level and an application for the
SOFS mining right was already submitted to the DMRE when
Sibanye-Stillwater integrated Wits Gold into the Group. A
feasibility study for the SOFS Bloemhoek project was finalised
in 2019. In 2017, the application for the SOFS mining right was
executed and development should enter the Bloemhoek project
area from Beatrix 3 shaft in 2021. Both the Bloemhoek and De
Bron Merriespruit projects will utilise existing Beatrix support
infrastructure, thus limiting the amount of capital funding needed
to reach production phase.
Cleaning a gold bar at the SA gold operations
Sibanye-Stillwater Integrated Report 2019 137
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
CHALLENGES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
13%
women employed with 8%
of core mining roles held by
women
26%
absenteeism at the SA
operations to be addressed
89%
of SA employees are
recruited locally
BEE scorecard level 7
Breaking down the language
barriers in SA to improve the
effectiveness of training and
application of safety and
operational standards
APPROACH
Our people are our most
important asset. We are
committed to providing a safe,
inclusive work environment, in
which employees are valued, with
opportunities for a rewarding
career as well as learning and
skills development. We aim
to recruit and retain a highly
qualified, skilled and diverse
workforce, with a culture that
puts safe production first and
enables people to realise their
full potential.
138
Sibanye-Stillwater Integrated Report 2019
Employee at the Columbus metallurgical complex at the US PGM operations
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Our operations employ 84,521 people (including contractors)
in the US and at the SA operations in a wide variety of trades
and professions, which include inter alia miners, mechanics,
accountants, geologists and IT specialists. We pay competitive
salaries that, in addition to a basic wage, include significant
variable incentives and other benefits. Local recruitment is a
priority, enabling employees to provide for their families, and
by extension, the broader community. 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, while we are one of the top four private sector
employers in South Africa.
Significant growth and geographical diversification in the past
few years has challenged our human resources (HR) function
to constantly expand its knowledge base in order to realise our
strategic 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 employees within diverse
socio-economic environments and adhere to various legislative
requirements.
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, that incorporates our employee value proposition and
provides a road map of continuous improvement to 2021 is in the
process of being aligned to our organisational growth strategy.
The organisational growth strategy supports Sibanye-Stillwater’s
strategic objectives, and is aimed at fostering future ready
leadership, creating an enabling work environment, embedding
and stimulating trust-based employee engagement and driving
value-based decision making at all levels within Sibanye-Stillwater.
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. The elements of the HR strategic framework remained
intact during 2019 with the aim still being to attract, grow,
enable and retain high-performing leadership.
STRATEGIC FRAMEWORK
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
Sibanye-Stillwater Integrated Report 2019 139
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
EMPLOYEE VALUE PROPOSITION
e
u
l
a
v
s
e
d
i
v
o
r
p
r
e
t
a
w
l
l
i
t
S
-
e
y
n
a
b
i
S
e
h
t
n
i
l
s
e
e
y
o
p
m
e
o
t
Being an
employer of
choice
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. We aim
for 80% internal recruitment.
g
n
i
w
o
l
l
o
f
s
y
a
w
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.
production and Health and well-being and occupational hygiene.
See Commitment towards safe
Developing
leadership
capacity
Enhancing senior management skills required for meaningful engagement so that leaders provide
workplace environments that enable motivated employees to reach their full potential.
development on page 145.
See Leadership
Contributing to
socio-economic
development
Sharing value created by job opportunities and paying salaries and wages, spent within communities; by
contributing to and investing in local economic development initiatives in the 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 the payment of taxes, which should be applied
to socio economic development and help address poverty, inequality and unemployment around the SA
Refer to the Social, Ethics and Sustainability Committee: Chairman’s report on page 68.
operations.
Safety briefing before proceeding underground
140
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
CULTURE GROWTH PROGRAMME
Our culture growth programme was launched on 11 November 2019, which
will be a significant part of our continued drive towards achieving a zero harm
environment and ensuring a values based culture.
The purpose of the programme is to unite and align all our people, behaviours
and actions behind a shared values-based culture. This was assessed as a
vital initiative after several years of growth and change within the Group,
amalgamation of many teams and companies, and periods of disappointment
and uncertainty. This inclusive culture will enable us to deliver on our purpose of
improving lives and our vision of superior value creation for all our stakeholders.
To drive the culture growth programme, a new dedicated function called
Organisational Growth has been established to facilitate the implementation, while
the respective operations and service function executives will own the cultural
transformation within their areas. The culture growth framework (see diagram
below) will guide the execution of the strategy through the simultaneous pulling
of five levers (leadership, shared purpose, organisational wiring, measurement and
capacity, and capability building) and ensure alignment of the initiatives at each
level within the organisation. For each of the levers, initiatives will be designed
and executed for the different levels of the organisation. Each operating segment
and service function will launch customised initiatives to meet their individual
needs which will require employee involvement. Each employee is going to be
instrumental in shaping our shared values-based organisational culture.
As a significant contributor to the safety improvement success of our SA
gold operations, the operations have executed several culture transformation
initiatives over the last 18 months and provide a real example of their positive
effects. Their culture transformation execution plan has been aligned with
the culture growth programme in order to leverage some of the Group-wide
initiatives while continuing the successful initiatives to date. Similarly, individual
culture transformation strategies and execution plans are being implemented
within the US PGM operations, SA PGM operations and the service functions.
As an example, 3,000 employees have been interviewed through face-to-face
‘connection sessions’ across the Kroondal and Rustenburg operations, with the
process due to be extended to over 9,000 employees including at the Marikana
operations. The insights gained will be used to address employee concerns and
improve the environment within which they work.
Formula for success
As part of the Group-wide culture growth programme, we have initiated the
‘Formula for success’ process at our SA gold operations and SA integrated services
functions, with the SA PGM operations to soon follow in 2020. This process
is designed to identify and co-create our desired future values-based culture
involving all our employees across our SA operations.
This inclusive culture will organically become the ‘way we work’, including the
associated leadership style, behaviours and actions that will govern our daily
interactions with each other, our organisation and our stakeholders.
All employees will be asked what we need to do more of and less of to take
Sibanye-Stillwater to the next level. Opinions will be presented to employees for
voting and will ultimately form the basis for our cultural blueprint, which will be
officially unveiled to all in the second quarter of 2020.
Employee on chairlift at the SA PGM operations
At the Rustenburg workshop
The UG2 concentrator at SA PGMs
Sibanye-Stillwater Integrated Report 2019 141
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
FOSTERING A VALUES-BASED DECISION-MAKING CULTURE
Culture growth
framework
SAFETY
G
G
W IN
W IN
G R O
G R O
Capacity and
capability building
• New skills
• Continuous learning
BILITY
A
T
N
U
O
C
C
A
E
N
G
A
G
I
N
G
Leadership
• Alignment
• Behaviours
• Development
• Internal and external
R
E
S
P
E
C
T
Values-based
decision-making
culture
Organisational wiring
• Operating model
• Organisational design
• Processes and systems
ALIGNING
Shared purpose
• Cascading strategic
thinking
• Compelling strategic
narrative
G
N
I
R
PI
S
IN
M IT M ENT
M
O
C
Interventions will be
level specific:
• Individual
• Team
• Organisation
Measurements
• Aligned performance
metrics
• Reward and
recognition
G
N
I
R
E
V
I
L
E
D
E
N
Aligned to the:
• Safety Summit key project
• Zero harm strategic framework
A
B
LIN
G
• Mine Health and Safety Council (MHSC)
culture transformation framework
• Minerals Council South Africa (MCSA)
Khumbul’Ekhaya initiative
Employee at work at the SA PGM operations
142
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE HR SYSTEMS
As part of the digitalisation process, the HR function is making
greater use of technology and is working closely with the IT
function to develop systems to manage its services. These systems
are being implemented at the SA gold and PGM operations,
except for Marikana, where these processes will be rolled out at
the beginning of March 2020.
The automated recruitment system we started using at the SA
operations in 2018 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. The new recruitment model focuses initially
on internal candidates via the intranet as well as previously
retrenched employees before any vacant posts are advertised
externally. Filters, in the form of five key questions, are also used
to streamline the process. Much paperwork has been eliminated
by taking this process online.
The information management system (contractor management,
automation and digitalisation of employee services, such as
leave and sick days, and harmonisation of remuneration and
benefits), which we invested in during 2018, assists and enables
sustainable business continuity. This system also facilitates the
identification of HR-related business risks. The use of this HR and
payroll solution makes possible overtime and leave monitoring
and blocking to ensure compliance with basic conditions of
employment. The system simplified and improved efficiency as
the inputs interact directly with time and attendance. It can also
assist with monitoring legal compliance with safety and health
requirements, such as safety training, heat tolerance screening
and annual medical assessment.
We are in the process of consolidating one stop shops at all our
operations for the purposes of centralising all HR transactional
services, as part of our drive to improve the electronic experience
for more employees. There are currently two such centres at the
SA PGM operations, one at Marikana and one at Rustenburg.
These will be consolidated in 2020. At the SA gold operations,
our one stop shop operates from Libanon, with a satellite centre
at Beatrix for logistical reasons.
We have also focused our efforts in 2019 on the improvement
of our data management for improved and efficient reporting
in line with our business processes and operating model. As
the company grew, we identified the need to establish our
information standards to enable the alignment of HR information
when acquisitions take place. The team has actively been
reviewing the Group Standards in HR to enable effective reporting
outputs and management of data integrity. This has allowed us to
systematically grow system tools enabling effective and efficient
people management in our employee self-service platform. This
platform allows for employees to retrieve information on their
own personal human resources transactions, e.g. leave requests
or overtime schedules.
TIME AND ATTENDANCE
A review of time and attendance was conducted in 2018 at
the SA operations. The process 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.
Employees are compensated for overtime work performed.
However, to encourage employees to be more productive
during normal working hours and promote good
governance, our overtime policy has been revised and has
resulted in a R1 million reduction in the amount paid out for
overtime work.
We have also improved the overtime scheduling process by
adding overtime scheduling to our employee self-service
platform. The scheduling process now links to the time and
attendance system which logs overtime and removes the
manual submission of forms.
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 seek to create an executive talent
pool that is aware of our business
needs, based on the environment in
which we operate.”
An employee clocks in for work
Sibanye-Stillwater Integrated Report 2019 143
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
TALENT MANAGEMENT AND CAREER GROWTH
In 2019, our talent management framework was aligned to
the company’s strategic priorities and to the organisational
growth strategy: building skills and competencies that foster
self-empowerment and problem solving, developing individuals
that embody the desired culture and fulfil the requirements
of a future ready leader and setting up the company for
future success. As part of the alignment process, a review was
conducted of all discipline career paths and our internal talent
and succession pipeline.
We seek to create an executive talent pool that is aware of our
business needs, based on the environment in which we operate.
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 can achieve
80% self-sufficiency with a blend of external hires.
The career growth model and career paths includes four
critical pillars:
• Individual performance
• leadership ability
The performance management process is linked to individual
development, talent management and leadership development.
It plays an important 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.
SA operations: talent pool 1
Talent pool size (A-D band)
2,205
1,787
1,282
Successors promoted
172
131
105
2019
2018
2017
1 Employees identified as potential leaders for development
• qualification/technical competence/business knowledge
• 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.
“In South Africa, Sibanye-Stillwater
aims to strengthen leadership
capability by implementing tailor-made
development programmes that are
aligned with business needs.”
The 70-20-10 learning and development model is also applied as
a valuable general guideline to maximise the effectiveness of learning
and development programmes through activities and inputs
70%
informal on-the-job
experience based
on practice
20%
coaching, mentoring
and development
through others
10%
formal learning
intervention and
structured
workshops
144
Sibanye-Stillwater Integrated Report 2019
Employees at the Kloof gold plant in SA
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE ASSESSMENTS
In support of the leadership and capacity and capability levers in
the culture growth framework
(see page 142), the
Sibanye-Stillwater assessment framework as well as the
leadership competencies were changed in 2019.
Psychometric assessments
Psychometric assessments are used in recruiting, identifying
talent and promoting effective human resource development
and personal growth. They are also aligned with the leadership
competency framework and our values.
Employee assessments
During 2019, we began the implementation of the revised
assessment framework, which included inter alia the
assessment of all E band level and higher employees against
our future ready leadership competencies, providing individual
feedback and signing off on an individual development plan
for EU and above. All D and EL level employees will undergo a
similar process in 2020.
The objective for 2020 is to align all assessment profiles to the
strategic objectives of the organisational growth strategy and
framework.
At the US PGM operations, all employees were evaluated
during 2019 in order to identify growth and training
opportunities and succession.
The annual review process for salaried employees in the US
consists of goal setting in four areas: safety/environmental;
production/business improvement; work quality; and people
matters. Supervisors and employees meet quarterly to review
progress and adjust goals, if necessary. These quarterly
conversations also include focus and discussion on where the
employee scores on the leadership qualities matrix, training and
development needs for the forthcoming year and a five-year
future look into the employee’s individual career progression. All
425 US salaried employees participate in the annual performance
evaluation process. Merit increases for the following calendar year
are dependent upon the evaluation score received in the prior year.
Executive assessments
In support of the organisational growth strategy model, the
future ready leadership competencies for all senior leadership
levels have been completed and have been used to conduct
leadership assessments and individual development discussions
as well as incorporated into personal balance score cards.
“In 2019, the US PGM operations
completed an employee engagement
survey. Each leader received feedback
on their area of responsibility to help
them assess what can be done better.”
LEADERSHIP DEVELOPMENT
As leadership is a competitive advantage and enabler for delivery
on business goals and social imperatives, we aim to promote and
improve leadership capability. We are aware of the need for agile,
future-ready value-based leadership to execute our strategy.
As Sibanye Stillwater, we foster a culture of future ready leadership
and values-based decision-making, based on our CARES values. We
have created future ready leadership and values-based decision-
making frameworks to guide us in delivering on this mandate.
In South Africa, Sibanye-Stillwater aims to strengthen leadership
capability by implementing tailor-made development programmes
that are aligned with business needs. The middle management
programme was launched in July 2019 in partnership with a
corporate education consultant (Duke Corporate Education). The
aim of the programme is to expose middle managers to leadership
training providing them with the skills, knowledge and behaviours
to perform in their current roles. The key themes covered over three
modules are leading self, leading others and teams and leading with
business sense. The programme is customised to the requirements
of Sibanye-Stillwater and content is linked to the Sibanye-Stillwater
leadership competencies and CARES values.
The first phase of the programme ran during 2019 and consisted of
six cohorts with a total of 149 delegates. At total of 117 delegates
completed and successfully graduated from the programme in
November 2019. The next phase will roll out at the beginning of 2020.
The women’s leadership programme was launched in July 2017 in
partnership with Duke Corporate Education. The purpose of the
programme was to provide short leadership development sessions
to empower women leaders within Sibanye-Stillwater across A, B, C
and D levels in the organisation. The first phase of the programme
covered the following themes: personal mastery, growth mind-set,
community outreach, personal finance and women in mining. The
master classes were a huge success and set the course for the next
phase of the programme.
The second phase of the programme was launched in November
2019 with the first session focusing on feedback from the
employment equity barriers audit: transformation and the
development of a framework for an internal UN HeforShe gender
equality programme serving as input into the Minerals Council. Men
were invited to the event as we see them as pivotal in building a
cross-gender alliance for advancing women in mining at Sibanye-
Stillwater. This first session set the scene for a new year of exciting
work on this front and welcome the support from Sibanye-Stillwater
in addressing issues of gender equality head on.
ON-BOARDING NEW EMPLOYEES
In 2018, as part of the on-boarding process, the South African
operations 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.
Sibanye-Stillwater Integrated Report 2019 145
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
Due to the strike at the gold operations in 2019 and funding
constraints, phase 2 of our revitalised on-boarding process will begin
in 2020 with its launch, a welcome video and a 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 PGM 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.
In 2019, the US PGM operations completed an employee engagement
survey. Each leader received feedback on their area of responsibility to
help them assess what can be done better, what should be stopped
or continued. We transitioned our applicant tracking system to a new
platform, which makes possible electronic on-boarding. Participation
in the survey was high (82%) and the overall results showed increases
in three of the four engagement metrics from the previous survey
conducted in 2016. Results have been disseminated to all the
operating sites and leaders have received their individual reports to
use for follow-up with their reporting groups. Areas for improvement
will be incorporated into performance targets for individuals in 2020.
VALUES BASED CULTURE
Sibanye-Stillwater initiated several culture programmes focused
on individual, team and operating segment levels and designed
with the purpose of co-creating behaviours that will in each
of the operating areas underpin and align to our values based
culture framework. To ensure that values based behaviours are
hardcoded and hardwired into our operating model, measures
defined are implemented as part of planning and review metrics
as well as performance scorecards. These include inter alia:
• deploying mechanisms to incentivise desired behaviours and in
order to measure, recognise and reward designed leadership
competencies that underpin behaviours in support of our
values based culture
• implementing and measuring metrics that represent the
changes in the organisation, beginning with vice president
levels and above
• tracking performance effectively so that senior managers can
focus on the needs of service departments and thus ensure
the same levels of visibility
In 2019 we continued to focus 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
• Implementation of the human resource development
programme to enable the HR community at the SA operations
to better support effective performance in the operations and
services departments
146
Sibanye-Stillwater Integrated Report 2019
EMPLOYMENT
The US PGM operations experienced an increase in employment
“consistent” with the planned “buid-up” at Blitz, adding 276
employees to the payroll by the end of 2019.
In 2019 the SA PGM operations issued an S189 notice to all the
recognised unions to consult stakeholders on restructuring of its
Marikana operations and associated services. The process commenced
in October 2019 and was concluded in December.
The outcome of the S189 process, following consultations with
stakeholders, is as follows:
• Shaft 1B and a specific sweeping and vamping project will continue
with limited mining, sweeping and reclamation, until the end of
December 2020, resulting in the preservation of 329 jobs, provided
that the projects continue to be profitable over a three-month
average period
• Job losses were reduced by identifying 166 opportunities for
affected employees to be transferred to other operations
• Approximately 1,612 employees opted for voluntary separation
packages, with 53 employees subject to normal retirement and
natural attrition of 259 employees
• Job reductions amounted to a total of 4,777 employees and
contractors with 1,142 employees and 1,709 contractors leaving
the company as result of the restructuring process.
• Management positions were reduced by approximately 24%
Protection services employees
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Workforce by operation at 31 December
2019
2018
2017
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
Marikana
SA PGM 2
(excluding services)
Regional Services 3
SA other 4
SA operations – total
US operations
Stillwater
East Boulder
Columbus
Metallurgical Complex
Regional services 5
Other 6
US operations – total
Corporate office 7
Group – total
6, 374
8, 547
9 858
103
493
25,375
5,445
11,458
20,200
37,103
2,748
2,368
67,594
1,090
436
196
67
0
1,789
67
69,450
735
1,164
7,109
9,711
1,271
11,129
23
353
126
846
3,546
28,921
1,904
7,349
1,704
13,162
3,385
23,585
6,993
44,096
2,617
1,043
5,365
3,411
14,199
81,793
480
239
149
4
0
1,570
675
345
71
0
872
2,661
–
67
15,071
84,521
7,329
10,576
9,776
114
486
28,281
5,673
13,023
n/a
18,696
2,251
1,720
50,948
962
411
186
67
2
1,628
55
52,631
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
n/a
n/a
4,971
23,667
1,239
806
3,490
2,526
10,503
61,451
280
45
1,242
456
54
5
0
240
72
2
384
2,012
0
55
10,887
63,518
7,084
10,969
9,581
237
717
28,588
5,715
13,194
n/a
18,909
2,262
1,867
51,626
863
409
179
54
8
1,513
55
53,194
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
n/a
n/a
4,898
23,807
1,349
1,827
3,611
3,694
12,821
64,447
333
54
1,196
463
64
6
0
243
60
8
457
1,970
–
55
13,278
66,472
1 Contractors excludes ‘fee’ 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 PPGM 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
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 2019
Permanent employees
Contractors
0.1
3
%
96.9
6
%
94
SA operations
US operations
Corporate office
Group
67,594
1,789
67
69,450
SA operations
US operations
Corporate office
Group
14,199
872
0
15,071
Sibanye-Stillwater Integrated Report 2019 147
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
Workforce by age
SA operations
18<30 years
30-50 years
>50 years
US operations 1
19<30 years
30-50 years
>50 years
2019
2018
2017
Permanent
employees Contractors
Total
%
Permanent
employees Contractors
Total %
Permanent
employees Contractors
Total %
3,458
49,530
14,606
246
990
553
3,261
6,719
9,222 58,752
1,716 16,322
246
990
553
8
72
20
14
55
31
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
1 Ages of contractors at US operations not available
Female workforce by age
2019
2018
2017
Permanent
employees Contractors
Total
%
Permanent
employees Contractors
Total %
Permanent
employees Contractors
Total %
SA operations
21-<30 years
30-50 years
>50 years
US operations 1,2
<30 years
30-50 years
>50 years
875
7,050
663
21
77
54
270
1,145
1,051
8,101
116
779
21
77
54
11
81
8
14
51
36
1 Ages of contractors at US operations not available
2 Not reporting in prior years
760
5,551
440
207
967
618
6,169
55
495
13
81
6
855
5,317
374
263
650
53
1,118
5,967
427
15
79
6
SHIFTS NOT AT WORK INCLUDING ABSENTEEISM
SA operations: shifts not worked including absenteeism* (%)
The SA operations had a year-on-year improvement from 18.9% to
16.9% shifts not worked, when excluding the strike shifts at the SA
gold operations. The absenteeism for 2019 was low at 0.19% but
higher than the 0.13% of the previous year, attributed to the increase
at the SA PGM operations. Trend and data dashboard analytics have
been implemented to track associated trends on a regular basis.
Absenteeism is monitored on a monthly basis and pre-emptive
interviews as well as counselling have been implemented in an
attempt to address the negative trend. In addition to the monthly
monitoring, the gold operations are conducting home visits of
people being absent without a reason, where appropriate, to track
trends. The same approach have been implemented at our SA
PGM operations.
The statistics are enriched with route cause interviews in order to
develop interventions aimed at prevention and correction rather than
punitive actions being implemented. Absenteeism remains a safe
production inhibitor and therefore a key focus at operational level.
US PGM operations’ employees are allotted a specific number of
vacation and sick/personal days per year. When these days have been
exhausted, should the employee miss work, employment is terminated.
148
Sibanye-Stillwater Integrated Report 2019
25
20
15
10
5
0
16.9
17.3
19.0
18.9
19.7
15.0
SA operations
2019
SA gold
2019
SA PGM
2019
SA operations
2018
SA gold
2018
SA PGM
2018
Annual leave
Other leave
Training
Absenteeism
SA operations: absenteeism* (%)
1.0
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
0.9
0.19
0.1
0.3
0.13
0.1
SA operations
2019
SA gold
2019
SA PGM
2019
SA operations
2018
SA gold
2018
SA PGM
2018
Absenteeism
*Excludes strike shifts in 2018 and 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
EMPLOYEE TURNOVER
The annual turnover for management level employees at the SA operations in 2019 was 0.36%, including 0.16% HDSAs and 0.05% women in
management. The total turnover in the SA operations was 12.8% (6.1% at the gold operations and 6.3% at the PGM operations).
Annualised attrition in the US PGM operations in 2019 was 9.44% while the attrition rate among mineworkers was 7.17%.
DISCRIMINATION
No incidents of discrimination were reported during 2019 for the SA operation and one case for the US PGM operations, which was handled
according to the process and legal procedures of the company.
“Absenteeism is monitored on a monthly basis and pre-emptive interviews as well as
counselling have been implemented in an attempt to address the negative trend.”
TRAINING AND DEVELOPMENT
Key to achieving sustainable, safe production are competent and skilled employees, supporting the business case for relevant training as an
imperative to improve employee learning effectiveness across the SA operations.
A benchmarking process was completed in 2019 to provide leading practice in learning delivery and management technology in order to improve
training competency and outcomes across the entire organisation. As a result, the Sibanye-Stillwater Academy successfully developed a modernised
learning and development strategy and prioritised eight learning and development issues with the SA gold and PGM operations in 2019.
FOCUS AREAS DERIVED FROM INTERNAL FEEDBACK AT SA OPERATIONS
1
2
3
4
5
Entry requirements
for mining positions
to be reviewed
3D
assessments
Consequential
thinking using media
to stimulate learning
retention
Modernised
training – self-study
Risk-based
training
6
7
8
Phasing out use
of the Fanagalo
language
ABC training
of mining and
engineering
Best practice
site visits
Sibanye-Stillwater Integrated Report 2019 149
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
BREAKING THE LANGUAGE BARRIER: THE MOVE TO HIGH-IMPACT, FUNCTION-BASED TRAINING
Employees in the South African mining industry speak numerous different languages: among them English, isiZulu, isiXhosa, Sesotho,
Setswana and Afrikaans. Delivering industry training to a multi-lingual population is inevitably challenging.
The use of the lingua franca of Fanagolo, with its origins dating back to the 19th century, has understandably become highly politicised and
is undesirable for several reasons, despite its intrinsic usefulness. Furthermore, Fanagolo does not make possible the provision of terms for
mining equipment or methods in general, modern technology nor for more abstract terms, such as Sibanye-Stillwater’s CARES values.
Previous research conducted suggested that the multi-lingual route was the answer, but this, too, came with its challenges. Some words
exist only in English, there was a reluctance from the speakers of Fanagolo to give it up, people did not have the appetite to learn a third
language and moving from one operation to another might mean learning to be proficient in up to six different languages.
Against this background, Sibanye-Stillwater has taken this challenge head on and has picked up on some recent University of the
Witwatersrand research. A recommendation was made by management to provide function based English training and the first pilot took
place in November 2019. The effectiveness of the training will be assessed and customisation of content, delivery and duration will be
considered to ensure a successful outcome.
Training and the fourth industrial revolution
Mining 4.0 is the term given to the modernisation of the mining cluster using digital and other innovations as part of the so called
fourth industrial revolution. Digital and automated technologies are helping to change the traditional process of extracting minerals from
underground. Mining companies are investing in innovation and are introducing automated drilling into high-risk underground areas,
putting microbes to work to extract metal from ore and using blockchain technology to trace diamonds through the supply chain. In
tandem with the use of these technologies, training needs to adapt and change. Sibanye-Stillwater is continually taking steps to keep
abreast of these changes.
In line with our revised modernised learning and development strategy, one of these pillars is entry requirements. Working together as a
Group, we are currently establishing what will be the ideal education, qualification and skills mix to meet future staffing needs. We are also
working on career paths and career progressions, and the requirements for moving from level to level. We are changing our recruitment
methodology – in lower level categories we will be moving from the current nomination process to an application and interview process.
The current system is seen as unfair, not open and transparent.
Currently being piloted is psychometric evaluation of employees to establish their three-dimensional reasoning capabilities. Reasoning in 3D
is essential for people who must interpret rock conditions underground.
We are currently busy with the visual simulation of occupational high-risk incidents to be included in the library matrix as part of training.
Learning programmes are being developed around the identified learning points, particularly with respect to fatalities and high potential
incidents. At the SA PGM operations, we are identifying technology which can help modernise our simulators, especially to aid in the
identification of hazards. The new technology will be piloted in the PGM operations before going to our SA gold operations.
We reviewed the assessment of learners in a current traditional paper-based environment and recommended the use of tablets in mockups
and underground assessments. We will be piloting this at our PGM operations.
Employees schedule their individual development training via a prospectus that resides on the intranet. However, this classroom-based
training is by its very nature not instantly available. In the interests of accessibility, efficiency and flexibility, we recommend ‘own time
learning’ for our employees and have started to build our e-library (including fatality videos), which will become available on our intranet.
Additionally, we are reviewing the current traditional classroom teaching of the induction programme and induction e-learning content
development is underway through an app.
In another initiative, we conducted a review of the training requirements of the Mine Health and Safety Act, to measure our levels of training
compliance. We have established that, in all areas under the legislation, we have implemented the required mandatory programmes and systems.
The next phase in this process will be to ensure no employee is able to bypass any of these mandatory training interventions. Analysis has identified
that some designations, such as office clerical staff, were able to return from annual leave without completing annual refresher training. A legal
block functionality within the HR information management system has already been developed and is being phased in at the operations. The
functionality tracks legal training frequencies and automatically blocks any employee that does not meet any of the set requirements.
At our SA PGM operations, we have introduced the ABC of training, which consists of high impact, back-to-basics training in key performance
areas in different positions. Initial training duration is three to five days, depending on the discipline and occupational level. The critical learning
outcomes from this programme were also integrated into the annual refresher training content during 2019.
150
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE In 2019, our SA operations invested R744 million (2018: R559 million)
in HR development, representing 12.5 million hours of training,
equivalent to 81.5 training hours per employee (2018: 69). The total
number of employees and community members attending one or more
of our training programmes increased from 146,978 in 2018 to 153,
754 in 2019. The main reason for the increase was the integration of
Marikana operations, which contributed 29,370 to the total number
of employees trained. Without the Marikana operations’ contribution
there would have been a decrease in total training of 22,595. This
decrease is due the impact of the strike at the SA gold operations,
which affected training delivery during the first two quarters of 2019.
The restructuring at the SA gold operations, which took place from
February 2019, resulted in the closure of the Driefontein training
campus and establish a Centre of Excellence at the Kloof Campus to
service all Sibanye-Stillwater mines located on the West Rand. This
centralised approach has paved the way for the implementation of a
more effective training model. For example, we are now able to split
and provide a dedicated programme for a new employee attending
first time induction and those attending annual refreshers. The skills
programmes and learnership processes are also now standardised,
which gives flexibility for learners to undergo practical exposure at
both Kloof and Driefontein.
Excluding three HRD target areas, namely adult education and
training, internal bursaries and engineering learnerships, the SA
gold operations have made significant progress during 2019 in not
only achieving the targets set for the year, but also eliminating the
backlogs from the preceding two years, 2017 and 2018.
Similar success was achieved in the SA PGM operations, where we
are now up to date with Kroondal human resource development
commitments, and, on course to meet the Rustenburg backlogs,
which were carried over with the acquisition, also split over two years
(2019 and 2020). We are on target to meet Marikana’s SLP backlog
commitments, which have been split over a three-year period (2019
to 2021).
The US PGM operations are continuing to grow our training and
development areas to support the business. In 2019, US$333,000
(2018: US$211,000) or R4.8 million (2018: R2.8 million) was spent on
training. A total of 184 salaried employees participated in leadership
development training while four participated in a continuing
education programme (with 75% of the costs for tuition and books
reimbursed by the organisation). All the operations’ sites have fully
staffed training departments to complete safety and task training for
new and incumbent hourly employees.
Our HR function is making a concerted effort to address the backlogs
in essential skills development committed to in the various operations’
SLPs. At the SA gold operations, this process was constrained by the
strike that occurred in Q4 2018 and Q1 2019.
Training at the Metallurgical Complex has been enhanced by the
addition of a supervisor and three operators who spend some weeks
with our newly-hired employees.
Human resources development – SA (2019)
Expenditure (R)
Number of learners
Total training hours (number
of learners x average
training days per learner)
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)
Community maths and science
Support and research
Other
Total
77
28
73
13
81
94
10
11
11
10
304
5
0.9
3
0
3
21
744
278
314
1 067
293
497
638
34
554
310
2,105
127,256
511
789
6,583
0
0
12,524
153,753
560,448
633,024
384,120
131,850
1,001,952
1,286,208
68,544
26,592
29,760
84,200
8,144,384
32,704
6,312
52,664
0
0
100,192
12,542,954
Sibanye-Stillwater Integrated Report 2019 151
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
SA operations: Human resource development (R million)
Beatrix
Burnstone
Cooke
Driefontein
Kloof
Kroondal
Rustenburg
Marikana
Total
2019
2018
2017
SLP financial
provision
Actual training
expenditure
SLP financial
provision
Actual training
expenditure
SLP financial
provision
Actual training
expenditure
74
2
20
144
104
68
102
186
700
88
0
2
98
129
77
155
197
745
113
5
13
138
113
45
96
103
626
77
1
1
135
143
69
133
164
723
74
2
20
144
104
_
131
97
672
73
–
23
132
111
59
134
151
683
LABOUR RELATIONS
In 2019, 93% (2018: 95%) of our total permanent workforce in the
SA operations was represented by four recognised unions: AMCU,
NUM, Solidarity and UASA. Sibanye-Stillwater supports an employee’s
rights to freedom of association and collective bargaining, as set out
in South Africa’s Labour Relations Act.
In the US operations in 2019, 1,363 (2018: 1,237) employees were
members of the United Steel Workers International Union (USW).
At the Stillwater mine and Columbus Metallurgical Complex, 1,023
(2018: 917) employees had union representation and 340 (2018: 320)
at the East Boulder mine.
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 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 2019, 54% (2018: 54%) of employees in the SA operations
had qualifications equivalent to adult education and training
level 3 and higher (literate) while 16% are semi- literate and
30% have undefined qualifications. The literacy level at the gold
operations in 2019 was 71% (2018: 71%) and 40% (2018:
37%) at the SA PGM operations.
In 2019, 31 employees who had attended adult education and
training moved into a mining learnership programme (2018: 7).
In the future, it is planned to have a centre of excellence for
adult education and training for the SA PGM operations.
SA operations: adult education and training
Number of
employees
trained
719
566
*969
Number of
community
members
trained
238
202
213
Total
957
768
1,182
Year
2017
2018
2019
* Includes the Marikana operations from June 2019
An employee making his way to his underground working area
152
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE WAGE NEGOTIATIONS AND INDUSTRIAL ACTION
SA gold operations
Sibanye-Stillwater signed a three-year wage agreement with NUM, Solidarity and UASA at the SA gold operations for the period 1 July
2018 to 30 June 2021 on 14 November 2018.
Despite numerous attempts by Sibanye-Stillwater to reach a fair and reasonable outcome with AMCU representatives since the
negotiations began in June 2018, and despite having participated in the construct of the final offer, AMCU declined to accept the offer.
The average basic wages for category 4-8 employees have increased by more than 65% since Sibanye-Stillwater was unbundled from Gold
Fields in 2013. This is significantly above inflation, takes the longer-term sustainability of the SA gold operations into consideration and
represents a very real improvement in the standard of living of our employees.
AMCU gave notice that its members would embark on protected strike action at our SA gold operations from the evening shift of 21
November 2018. Despite ongoing attempts by Sibanye-Stillwater to reach a fair and reasonable outcome, AMCU national leadership
persisted with its original, unaffordable demands.
The gold strike was characterised by violence and intimidation. The safety of our employees was and is our primary concern and therefore
we took specific measures within our control which included the following:
• all night shifts were suspended at the gold operations for the duration of the strike
• a court interdict was obtained against NUM and AMCU which prohibited the unions and their members from inter alia:
– committing acts of violence, harassment and/or intimidation
– stopping any other employees from going to work
– interfering with service providers, suppliers, customers and/or the business of Sibanye-Stillwater and its associated companies and
operations
• we obtained a court order amending the picketing rules at our Beatrix operations
• we obtained a contempt of court order against union leaders and members who breached the court orders
• during the strike, management instituted disciplinary proceedings against employees who were identified as having participated in acts
of violence, intimidation and/or assault
• we appointed 700 additional security personnel to secure the safety of employees on our property during the strike
• making use of our in-house security (protection services), we patrolled areas around the mine to enable safe passage for employees who
wanted to work
• all unions were asked to sign the Peace Pact that was intended to ensure safe passage for those employees who wanted to go to work.
AMCU refused to sign the Peace Pact even after the intervention of the Minister of Police
Reported acts of intimidation and violence were investigated and implicated employees were disciplined in line with our policy. At total of
97 people have been dismissed as a result of unlawful activities during the strike.
A summary of the lives lost and recorded damage during the 2018/2019 gold strike
Item
Total
Remarks
Number of deceased as a result of injuries sustained through
violence/sabotage during the strike
10
Includes a 15-year old girl who died from burn wound
complications
Number of people assisted with medical help due to injuries
sustained through violence during the strike
165
Includes five children
Number of people arrested during the strike
Number of employees dismissed for misconduct during
strike
Number of houses set alight
156
344
60
Post the strike only 88 employees remained dismissed based on
the strike settlement agreement
Took place in Blybank (Merafong, Gauteng) and Meloding (Virginia,
Free State) with three children suffering severe burn wounds
Number of cars set alight belonging to employees
16
14 damaged
Sibanye-Stillwater Integrated Report 2019 153
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
EMPOWERING OUR WORKFORCE CONTINUED
WAGE NEGOTIATIONS AND INDUSTRIAL ACTION CONTINUED
SA gold operations continued
The five-month strike by AMCU was finally resolved on 17 April 2019, when AMCU committed to signing the same 2018 three-year wage
agreement previously signed with NUM, Solidarity and UASA with a R4,000 additional once-off payment that was paid to all employees at
the SA gold operations, regardless of their union affiliation.
For more information on the wage increases agreed at the time, please refer to
news-releases/.
https://www.sibanyestillwater.com/news-investors/news/
Both parties acknowledged that it was in their interest to develop a constructive relationship going forward, which would, in turn, help
foster a safe and sustainable business that creates value for all stakeholders. The parties agreed to a relationship building programme aimed
at aligning leaders of both organised labour and management.
Internal engagement to foster respectful relationships
Extensive work was carried out during 2019 to rebuild relationships and team spirit. Internal engagement focused on safety, production
and our people, with our values as the common thread throughout. Senior management increased the number of their visits to the
operations, mass meetings became regular events rather than ad hoc, feedback platforms were established with the involvement of mine
overseers and management podcasts were used consistently as a communications tool. Our safety hotline became a feedback mechanism
for issues other than just safety, and employees were comfortable enough to voice opinions without anonymity. Communications became
more proactive, regular and open.
SA PGM operations
On 15 November 2019, Sibanye-Stillwater concluded three-year wage agreements for its Rustenburg and Marikana operations.
Negotiations were conducted in a constructive manner without any disruption. The wage agreements were signed with the representative
unions – AMCU at Marikana and AMCU and UASA at Rustenburg – in respect of wages and conditions of service for the period 1 July
2019 to 30 June 2022.
For more information on the wage increases agreed at the time, please refer to
news-releases/
https://www.sibanyestillwater.com/news-investors/news/
US PGM operations
Wage contracts were negotiated at the Columbus Metallurgical Complex and the Stillwater mine (including the Blitz project) in April 2019.
We were able to secure a five-year contract which is fair to both the company and employees with only six days at the bargaining table,
providing stability for the business. We believe this is indicative of the good understanding we have with the union concerned. The next
wage negotiations at East Boulder will be at the end of 2021.
Union representation at SA operations (2019)
Membership
Representation (%)
Union representation at US operations in 2019 (%)
USW
Non-unionised
Gold
24,460
96
PGMs
33,692
91
Services and
other
4,417
86
Total
62,569
93
Stillwater
(including
Blitz)
Columbus
Metallurgical
Complex
80.6
19.4
54.8
45.2
East
Boulder
Administrative
support staff
78
22
0
100
154
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA operations: membership by union
2019
2018
2017
Total
Gold
PGMs
Services
and
other
Total
Gold
PGMs
Services
and
other
Total
Gold
PGMs
Services
and
other
39,921 11,810 27,083
1,028 25,830 13,469 11,955
406 26,687 13,651 12,335
701
17,364 11,170
3,892
2,302 18,192 13,236
3,158
1,798 17,133 11,992
2,859
2,282
3,512
1,629
143
949
531
–
1,811
763
143
752
335
–
3,236
1,113
1,846
1,319
717
438
–
–
–
277
164
–
3,183
1,242
–
853
564
–
1,937
445
–
393
233
–
520
Membership
AMCU
NUM
UASA
Solidarity
CEPPWAWU
Non–unionised
5,025
915
3,411
699
2,371
697
1,299
375
3,381
1,528
1,333
Total
67,594 25,375 37,103
5,116 50,948 29,232 18,696
3,020 51,626 28,588 18,909
4,129
Membership
representation (%)
AMCU
NUM
UASA
Solidarity
CEPPWAWU
Non–unionised
Total
59
26
5
2
0.2
7
100
47
44
4
2
–
4
100
73
10
5
2
0.4
9
100
20
45
15
7
–
14
100
51
36
6
3
–
5
46
45
4
2
–
2
64
17
10
2
–
7
100
100
100
13
60
9
5
–
12
100
52
33
6
2
–
7
48
42
3
2
–
5
65
15
10
2
–
7
100
100
100
17
55
10
6
–
13
100
The total wage bill at the SA operations in 2019 was R18 billion
(2018: R13.1 billion).
As at June 2019, the total monthly cash remuneration of an entry-
level underground employee in the South African mining sector was
R7,840 per month (source from the SA PGM industry wage website
at the time). The entry wages at our SA mining operations compare
favourably to other industries in South Africa.
In 2019, the minimum wage in Montana, US, stood at US$8.65
per hour. The union pay scale for entry level custodians begins
at US$25.03 per hour. The entry level wage for non-unionised
employees is US$24.00 per hour for an administrative assistant.
At the US PGM operations, the total wage and salary bill in 2019 was
US$191 million (R2.8billion) and in 2018 was US$164 million
(R2.6 billion). The average salary per employee for the US workforce
for 2019 was US$102,464 (R1.5 billion ).
SALARIES AND WAGES
The National Minimum Wage Bill sets South Africa’s national
minimum wage at R20 an hour or R3,500 per month (depending on
the number of hours worked).
The total guaranteed monthly income* for an entry level, Category
4 underground employee working at our SA gold operations
(negotiated in 2018) is R12,882 per month in year one, R13,819 in
year two, and R14,936 in year three, all before tax. The total average
monthly cost to company (including average bonuses, overtime and
UIF but before tax) for the same employee is R14,488 in year one,
R15,447 in year two, and R16,588 in year three. Basic pay is R8,712
in year one, R9,412 in year two, and R10,237 in year three.
For the Rustenburg and Marikana SA PGM operations (negotiated
in November 2019) the total guaranteed monthly income* for an
entry level, Category 4 underground employee is now between
R18,400 and R18,500 per month in year one, R19,500 and R19,600
per month in year two, and R20,700 and R20,800 per month in year
three – all before tax. Furthermore, the total average monthly cost to
company (including average bonuses, overtime and UIF but before
taxes) for the same employee is in the range R21,300 to R21,400 in
year one, R22,400 to R22,600 in year two and R23,600 to R23,800 in
year three. Basic pay alone is now between R12,500 and R12,700 in
year one, R13,500 and 13,700 in year two, and R14,500 and R14,700
in year three.
* Total guaranteed income is defined as the total income an employee
receives monthly, which includes basic pay, allowances, medical and
provident fund contributions and UIF but excludes variable bonuses
and overtime payments and taxes.
Sibanye-Stillwater Integrated Report 2019 155
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
CARING FOR INJURED EMPLOYEES AND THEIR DEPENDANTS
Through the Matshediso programme and the Lonmin Memorial Fund, 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.
The Matshediso programme and the Lonmin Memorial fund:
• provides some closure for families
• ensures dependants have a good basic education that enables them to attend a tertiary institution
• creates a skills pool for bursars, learnerships and job opportunities
• helps to reduce poverty and unemployment
Sibanye-Stillwater supported 369 dependants in 2019 at a total cost of R1.1 million (2018: 374 dependents at a cost of R1.5 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 29 matriculants supported by
Matshediso in 2019, 13 passed their final examinations. Approximately 14 Matshediso beneficiaries will be assisted with bursaries in 2020.
Benefit
Host schools
Boarding schools
Uniform, stationery, text books and transport
Extra classes at host schools
Study opportunities
2019
R7,000 (primary)
R15,000 (secondary)
R18,000
R3,000
2018
R7,000 (primary)
R15,000 (secondary)
R18,000
R3,000
R2,160 per subject per year R2,160 per subject per year
Bursary/internship awarded automatically for study of choice at recognised tertiary
institution (certain minimum requirements)
R10,000
R2,000
R500
2017
R5,000
Christmas voucher or hamper
Total amount paid to beneficiaries
R1,500 per family
R1.16million
R1,500 per family
R1.49 million
na
R0.76million
The Lonmin Memorial Fund (Sixteen Eight Memorial Trust)
Sibanye-Stillwater supported 83 dependants in 2019 at a total cost of R2.5 million.
Feedback from all beneficiaries of the programme, as well as school principals and teachers, is positive. Of the eight matriculants supported
by the Lonmin Memorial Fund 2019, six passed their final examinations.
Benefit
Host schools
Boarding schools
Text books
Stationery
Uniforms
Transport
School trips
Psychometric assessments
Extramural activities
Total amount paid to beneficiaries
2019
R50,000
R50,000
R2,500
R2,000
R3,500
R1,000
R2,000
R2,500
R2,500
R2.5 million
2018
R50,000
R50,000
R2,500
R2,000
R3,500
R1,000
R2,000
R2,500
R2,500
R1.38 million
2017
R50,000
R50,000
R2,500
R2,000
R3,500
R1,000
R2,000
R2,500
R2,500
R0.68 million
In addition to the Matshediso programme, Sibanye-Stillwater 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), projects 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 widened, and ramps and pathways installed
• bathrooms made wheelchair-friendly and suitable toilets fitted
In 2019, two spinal cord injury employees’ houses were initiated at the SA gold operations.
156
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE CARING FOR INJURED EMPLOYEES AND THEIR DEPENDANTS CONTINUED
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
• 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 at the SA gold operations.
Caring for the families of the Marikana tragedy
Although the Marikana tragedy on 16 August 2012 occurred while Lonmin were still the owners, Sibanye-Stillwater has committed to the
widows who have not been supplied with houses being provided with an option to choose from the available houses in Rustenburg and
Mooinooi. Alternatively, others have opted to have new houses built for them in the rural areas. The houses are standard houses with three
bedrooms, open plan kitchen with dining room, two bathrooms and a garage. The first phase is to have the available houses renovated and
handed over. The renovations will commence during 2020.
Sibanye-Stillwater, through the 1608 Trust, will continue supporting the beneficiaries by providing educational assistance in the form of
paying for school fees, uniform, stationery, textbooks, excursions, transport, tertiary tuition fees, accommodation allowances and meal
allowances. Six graduates completed their programmes in 2019 in the following disciplines:
• Master’s degree in Animal Science
• National Diploma in Business Management (two graduates)
• National Diploma in Office Administration
• National Diploma in Technical Financial Accounting Programme
• National Diploma in Accounting
Sibanye-Stillwater is in the process of compiling a process that will be discussed with management and/or trustees, where applicable. This
includes the following:
• TVET students will be encouraged to upgrade their certificates to be eligible for higher diplomas.
• On completion of their qualification, students will be afforded internship opportunities as graduates in disciplines relevant to the business.
• Students may be eligible for employment opportunities where vacancies exist.
• Career guidance to be arranged for the students at high school level to enable a broader understanding of possible qualifications they
can apply for.
This process will be discussed in 2020 for approval.
The below tabulates the expenditure for the last three years, with Sibanye-Stillwater assisting from June 2019.
Benefit (R)
Host schools
Boarding schools
Text books
Stationery
Uniforms
Transport
School trips
Extramural activities
Tertiary accommodation
Tertiary meals
Admin fees
2019
2018
2017
4,835,636
4,041,869
2,936,206
–
–
135,606
128,215
350,007
77,100
146,885
223,160
133,500
74,477
–
–
104,810
158,804
395,024
–
313,025
485,252
160,363
–
–
28,803
68,329
122,543
547,289
–
23,770
50,332
22,075
–
Total amount paid to beneficiaries
R6.2 million
R5.78 million
R3.8 million
Sibanye-Stillwater Integrated Report 2019 157
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
HOUSING
Going beyond Mining Charter requirements, our SA gold operations currently provide single accommodation for 10,003 employees and 6,001
family units while 4,527 single rooms and 7,002 family units are provided for employees at our SA PGM operations.
Since 2015, R430 million has been spent on upgrading single accommodation at our mines. Ongoing renovations, including cosmetic changes
to accommodation facilities, continued in 2019, and this helped create employment and business opportunities for local small, medium and
micro enterprises (SMMEs).
Employees who choose not to live in company provided accommodation, receive a living out allowance (except for Marikana).
SA operations: housing and accommodation
Number of employees living in
Single accommodation complexes (mine employees)
Family accommodation (houses)
Private/other (balance of total workforce)
Number of company-owned houses sold
Total
Employees
Private
Number of company-owned houses sold since programme inception (2015): cumulative total
Total
Employees
Private
Number of houses built during the year
Number of houses built since programme inception (2015)
Spend on accommodation maintenance/renovations* (Rm)
Family
Single
Spend on accommodation maintenance/renovations (excluding labour costs) (Rm)
Family
Single
Single accommodation upgrade spend since programme inception (2015) (Rm)
2019
2018
2017
PGM
Gold Total SA Total SA
1,542
5,931
8,659
11,650
12,043
5,573
7,512
7,559
31,558
14,689
20,769
32,079
123
123
0
554
407
147
0
0
96
225
66
210
** 0
179
177
2
855
532
323
0
36
74
40
28
16
430
138
103
33
676
355
321
0
36
90
47
50
22
430
111
93
18
538
252
286
0
36
99
46
56
21
430
*The cost of accommodation maintenance and renovation is comprehensive (not only painting). Spend on maintenance and renovation of single
accommodation has decreased year-on-year as a result of the planned closure of some of the units at Beatrix
**The SA PGM operations does not have a single accommodation programme
158
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE At the SA gold operations, the focus is on reducing the footprint
in both family and single accommodation which in turn will reduce
the overhead cost associated with this service. The restructuring of
marginal shafts at the Driefontein mine and the subsequent reduction
in labour allowed for the closure of the Tsepong hostel.
To further reduce transport and other costs, we are in the process of
consultation with organised labour to relocate employees to hostels
closest to their place of work. This will allow for further footprint
reduction once this has been optimised.
For the benefit of our host communities at large, we continue
to engage with local government regarding the donation of our
villages (on unproclaimed land) to municipalities. The donation of
approximately 123 hectares of land to the Rand West City Local
Municipality 2018 was followed up with a donation of approximately
114 hectares, including land on which most of the process for
township establishment has been completed. This enabled the
municipality to commence with the installation of bulk services in
a first phase of a proposed township, saving on the long process
of formalisation. The emphases is to concentrate on land in close
proximity of existing towns in order to provide land for housing
projects near labour nodes. The donation of a further portion of
land, on which the proposed township of Bhongweni is located, has
commenced.
The Sibanye-Stillwater gold operations have approximately 4,000
family accommodation units in proclaimed/municipal areas and
another 2,000 units on un-proclaimed land. As part of a strategy to
facilitate home ownership, a home ownership programme has been
developed whereby we sell houses at a discount to our employees.
In 2019, a total of 179 houses were sold with another 363 offers
to purchase in the process of authorisation and/or registration. The
SA PGM operations have 1,918 family accommodation units in
proclaimed/municipal areas and another 948 units on un-proclaimed
land. In 2019, a total of 63 houses were sold with another 200 offers
to purchase in the process of authorisation and/or registration.
As part of our promotion of home ownership, the SA PGM operations
have developed a home ownership programme whereby we are
selling approximately 1,455 of the existing houses to employees at a
discounted price.
Lonmin committed more than R500 million towards employee
housing and living conditions for the period 2014 to 2018 before it
was acquired by Sibanye-Stillwater. Over and above this commitment,
we incur an ongoing cost of R475 million per annum in living-out
allowances to category 4 to 9 employees and an operating cost for
current rental stock of R57 million per annum that covers the subsidy
on rent payments. The average rental rate per unit in 2019 was R385
per month after subsidisation. Single units represent 56% and family
units 44% of all housing stock.
Some R420 million has been committed towards the new SLP
commitments (2019 – 2023) despite the current financial challenges
facing the industry. Of the R500 million allocated for the period
2014 – 2018, Lonmin spent R84 million completing the hostel
conversion programme. The balance of this allocation has been and
is being spent on infill apartments. By end December 2018, a total
of 1,240 apartments had been built in close proximity to work and
all apartments are occupied by employees. This is in addition to the
progress made on the supply of the houses to the widows of the
Marikana tragedy
(refer to page 30 for more information).
Following the acquisition of Lonmin in June 2019, actual and potential
structural deformities were detected in five of 46 infill apartment
blocks built on an old landfill site in 2017 by Lonmin. All five buildings
have subsequently been evacuated and alternative accommodation
provided to employees. A detailed technical review has been
conducted and management eagerly awaits this outcome to determine
the way forward on these affected blocks.
The Marikana operation’s property strategy, a component of which
is to facilitate the employee home ownership programme, reached
implementation stage during 2019 and is undergoing management
review. The programme focuses on assisting our employees to improve
their living conditions and on partnering with the Department of
Human Settlements to facilitate better living conditions aligned to the
municipal spatial development framework and integrated development
plans. During 2019, we signed off on cooperative agreements with
the Department on two key projects: Marikana Ext.13 Integrated
Residential Development Programme (some 4,000 units in a mixed-use
housing development); and Nkaneng Informal Settlement Upgrade
Programme. These two projects are located either side of the Marikana
koppie, site of the tragedy of 2012.
An employee home ownership help desk was launched at the
Marikana operations in March 2019. The help desk facilitates the
entire spectrum of home ownership transactions on behalf of
employees. Marketing of Marikana’s housing stock of 254 houses
in Brits, Mooinooi and Rustenburg took place during the year, and
approximately 200 offers to purchase have been signed.
There are challenges in both the SA gold and PGM operations
relating to living out allowances which are receiving attention at the
highest levels. These include the payment of living-out allowances
to employees who then choose to live in poor conditions and make
savings, but who then compromise their health and wellbeing; and the
payment of living-out allowances to Marikana employees who live in
company residences, resulting in considerable cost to the company.
As part of our housing strategy, in 2018 we assigned a professional
valuer to revalue all our properties, beginning with the gold operations
in order to sell the properties at an affordable cost to employees. In
2019, re-evaluation of properties took place at the SA PGM operations.
We are busy with various donations of land to municipalities, including
177 formalised stands in Blybank to Merafong City Local Municipality
and the transfer of 123 hectares in Toekomsrus to the Rand West City
Local Municipality.
We await response from government on our feedback on the
housing and living conditions pillar of Mining Charter 3, promulgated
in March 2019.
Sibanye-Stillwater Integrated Report 2019 159
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
FINANCIAL LITERACY PROGRAMME
BONUS PROGRAMMES
At the US PGM 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
Transformation targets in South Africa were changed in 2019 as a
result of Mining Charter 3 (see table below for new targets). The
operational scorecards at the SA operations have been adjusted to
achieve the set targets. In the US, attention is paid to increasing
diversity with every new recruitment.
SA operations
Two instruments are used to measure transformation within the
company in terms of Mining Charter 3, which came into operation
in 2019 (see table below for new targets). Firstly, the operational
scorecards for each mining licence holder at the SA operations have
been adjusted to achieve the new targets set. The second instrument
is the Broad-based Black Economic Empowerment (BBBEE) Code
which enables the organisation to quantify its contribution to
transformation in South Africa.
Given the new empowerment targets in the Mining Charter 3, we
have renewed our focus on integrating our talent management
approach to include targeted recruitment and succession planning,
specifically in under-represented areas.
In 2019, Sibanye-Stillwater’s scored level 7 in terms of the BBBEE
Code. This means our customers are able to claim 0.50 SA cents for
every R1 spent as broad-based black spend. The Group has reviewed
each pillar of the BBBE Code and has developed implementation plans
to improve the organisation’s scorecard performance. Our aim is to
achieve level 5 BBBEE in 2021.
In the SA operations, our financial literacy programme, CARE for
iMali, continues to make a difference in employees’ lives. We have
conducted a comparison between CARE for iMali and the Marikana
operation’s financial literacy programme and have assessed that
CARE for iMali has better benefits, and therefore Marikana will be
integrated with the CARE for iMali programme.
Since the launch of the programme at the gold operations in 2014,
there has been a reduction of 63% in the number of garnishee orders
(from 4,023 to 1,488) 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 6,514 employees have enrolled in the programme
and garnishee deductions have been reduced by 62.6% since the
launch of the programme in 2017. The total average percentage
increase in take-home pay at these PGM operations is 35.53% (from
R13,038 to R 17,671). See the CARE for iMali fact sheet at
www.sibanyestillwater.com
EMPLOYEE SHARE OWNERSHIP PROGRAMME
At the SA operations, employees participated in our ESOP (employee
share ownership programme), 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 Gold employees at the time were allocated an equal
number of shares in each company.
Thusano received a similar number of shares in Sibanye Gold as in
Gold Fields (13,525,394). Following the rights issue in 2017 and
the capitalisation share allocations, Thusano now holds 19,233,755
Sibanye shares with 18,558 active participants as at 31 December
2019. Participants will receive income from dividends paid by the
Group in future. The Thusano Trust will be wind down in 2025 as per
the original Trust agreement.
With the acquisition of the Rustenburg operations in 2016, Sibanye-
Stillwater concluded a 26% broad-based BEE transaction through a
subsidiary. In terms of this transaction, 26% of the Rustenburg entity
is held jointly by the Rustenburg Mines Community Development
Trusts (24.8%); the Rustenburg Mine Employees Trust (30.4%);
Bakgatla-ba-Kgafela Investment Holdings (24.8%); and Siyanda
Resources (20%).
Meetings for the Rustenburg ESOP and the Rustenburg Mines
Community Development Trusts were held in September 2019.
An in-depth focus on the Rustenburg ESOP and the Rustenburg
Community Trusts will ensure these entities are brought in line with
BBBEE legislation. A team has been established to review each of the
governance arrangements in each of the Trusts and all outstanding
issues will be highlighted and addressed.
160
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA operations employment equity by category as at 31 December 2019 (as per Mining Charter 3)
Category
Board
Executive management
Senior management
Middle management (E band)
Junior management (D band)
Core and critical skills
Persons with disabilities
Historically disadvantaged persons1
Historically disadvantaged females
Actual (%)
Target (%)
Actual (%)
Target (%)
45
38
43
46
52
73
1
50
50
60
60
70
60
1.5
18
8
18
11
22
9
0
20
20
25
25
30
10
N/A
1 Historically disadvantaged individuals excludes white males and foreign nationals but includes white females
Employment equity across the South African operations improved to 50% from 48% in 2018 while employment of women remained at 13%.
The Department of Labour fined Driefontein R1.5 million for employment equity non-compliance, which Sibanye-Stillwater contested.
The labour court case is still pending as we await a court date to be set down.
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. Every effort has been made to ensure that our human resources policies
are gender-neutral.
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.
Women representation in our workforce improved to 13% in 2019 with 9% of core mining roles held by women. A focus of succession
planning is to increase female representation in middle management and in senior/executive management.
Sexual harassment is not tolerated 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 2019, one case
of sexual harassment was reported at our SA PGM operations and two at our SA gold operations. One case was reported at our US PGM
operations.
Gender diversity of permanent employees (2019)
2019
2018
2017
SA operations
SA gold operations
SA PGM operations
Regional services
and other
US operations 1
Corporate office
Group
Female
8,588
2,783
4,235
1,570
167
31
8,786
%
13
11
11
31
9.3
46
13
Male
59,006
22,592
32,868
3,546
1,622
36
60,664
% Female
87
89
89
6,751
3,003
2,742
69
1,006
90.7
54
87
139
26
6,916
%
13
10
15
33
9
47
13
Male
44,197
26,229
15,954
2,014
1,487
29
45,713
% Female
87
90
85
67
92
53
87
6,546
2,894
2,701
951
121
25
6692
%
13
10
14
32
8
45
13
Male
45,080
26,820
16,208
2,052
1392
30
46502
%
87
90
86
68
92
55
87
1 Includes services and other
Sibanye-Stillwater Integrated Report 2019 161
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION EMPOWERING OUR WORKFORCE CONTINUED
SA operations: recruitment by category
2019
2018
2017
Gold
PGMs
Gold
PGMs
Gold
PGMs
Total
*WIM
% Total *WIM
% Total *WIM
% Total *WIM
% Total *WIM
% Total *WIM
Management 1
Senior management 2
Core and critical skills
Total
31
1
938
970
7
–
198
205
23
–
21
21
14
–
814
828
–
–
115
115
–
–
38
2
14
1,840
14 1,880
5
1
359
365
13
50
20
19
28
2
678
708
1
–
117
118
4
–
109
14
17
1,924
17 2,008
18
327
345
17
–
17
17
38
–
518
710
7
–
65
128
%
18
–
13
18
1 D and E lower positions
2 E upper positions and above
* Women in mining
Women in core mining positions* (2019)
Group
5,658 (8%)
SA operations
Gold
US operations
PGMs
PGMs
2,248 (9%)
3,323 (10%)
87 (6%)
* Women in core mining reflects positions in mining and technical related areas
LOCAL EMPLOYMENT
A total of 79% of our SA workforce is made up of SA citizens. During 2019, the focus remained on recruiting from the surrounding communities
close to our operations, resulting in some 89% of the new recruits at the SA operations being local recruits. A total of 81% of the SA gold operations’
workforce was recruited locally while 98% of the workforce was recruited locally at the SA PGM operations.
SA operations: origin of employees (2019)
Province
Eastern Cape
Free State
Gauteng
KwaZulu-Natal
Limpopo
Mpumalanga
North West
Northern Cape
Western Cape
Non-South African
Total
SA operations: citizenship of non-South Africans (2019)
Country
Botswana
DRC
Germany
Ghana
Hong Kong
India
Lesotho
Malawi
Mozambique
Namibia
Nigeria
Peru
Swaziland
United Kingdom
Zambia
Zimbabwe
Total non-South African
162
Sibanye-Stillwater Integrated Report 2019
Gold
7,526
2,781
3,301
2,576
731
587
659
43
14
7,157
25,375
Gold
206
2
–
–
3,110
3,192
–
–
636
–
2
9
7,157
PGMs
11,158
1,390
1,692
847
1,841
663
12,337
383
19
6,773
37,103
PGM
22
3
1
–
1
–
2,209
2
4,396
2
2
–
89
3
3
40
6,773
Services
805
562
1,413
315
293
95
1,167
27
17
422
5,116
Services
13
1
1
1
228
115
–
1
49
–
3
10
422
Total
19,489
4,733
6,406
3,738
2,865
1,345
14,163
453
50
14,352
67,594
Total
241
6
1
1
5,547
7,703
2
1
774
3
8
59
14,352
%
29
7
9
6
4
2
21
1
0.1
21
100
%
0.4
0.0
–
0.0
–
0.0
8
–
11
–
0.0
0.0
1
0.0
0.0
0.1
21
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
SA operations: local* community recruitment
Appointments
Local recruits
%
2019
2018
2017
PGM
992
971
97.9
Gold
1,190
968
81.3
PGM
659
650
98.6
Gold
1,931
1,726
89.4
PGM
502
401
80
Gold
2,239
936
42
*Within a 50 kilometre radius of the mines
US operations: employee distribution by county (Montana)
Stillwater
Yellowstone
Sweet Grass
Park
Carbon
Other locations 1
1 Excludes two employees at Marathon (Canada)
FUTURE FOCUS
SA OPERATIONS
• Fully integrating Lonmin employees into the Group
2019
2018
2017
571
540
180
172
138
188
561
457
167
165
133
143
540
420
148
155
121
121
• Aligning our employee value proposition to the organisational growth strategy and its implementation
• Increasing gender diversity and equity
• Creating a compelling employment relationship
• Integrating the strategic talent and workforce management plan
• HR business process re-engineering inclusive of all policies, procedures and internal controls aligned to international best practices
• Best practice audit facilitated by South African Board for People Practices
• Implementation of a holistic integrated talent management framework aligned to all the levers of the organisational growth strategy
• Establishing strategic and effective partnerships (collaboration) with employees to find new ways of working
• Continuing digitalisation of HR information systems as part of creating an effective, efficient and agile HR strategy and operating model
• Optimising and repositioning loss-making gold operations, which may require formal restructuring that could result in termination of employment
• Establishing a high-performance culture
US 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
• Work to continue to improve engagement with the hourly workforce
• Cross-disciplinary teams to formalise our stakeholder engagement plan recognising employees are our most important stakeholders
• Develop strategies to strengthen diversity and inclusion initiatives to expand market for potential employees
Sibanye-Stillwater Integrated Report 2019 163
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION COMMITMENT TOWARDS SAFE PRODUCTION
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
CHALLENGES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
11 million 6
fatality free shifts at
SA gold operations
fatalities at the SA
PGM operations
61%
decrease in section 54
stoppages at SA gold
operations
Rock mass
management
a proactive approach to
minimise uncontrolled fall of
ground incidents
11%
improvement in serious
injury frequency rate:
improved from 3.70 in 2018
to 3.03 in 2019 for the Group
APPROACH
We are committed to fostering
the safety, health and well-being
of our employees in order to
ensure their safe return home
every day.
A safe and healthy workforce is central to the
delivery of Sibanye-Stillwater’s business strategy
and helps fulfil our purpose of improving lives
through our mining.
164
Sibanye-Stillwater Integrated Report 2019
Notice boards contain safety and health information
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
We take a holistic, values-driven approach to safety and health
management. The embedding of our values, underpinning
our corporate culture and driving decision-making throughout
the organisation is led by the CEO and senior leadership and
supported by the Board. We believe this leadership involvement is
essential to building trust and enabling safe production.
Prior to 2018, our safety statistics were industry leading. Post a
spike in fatal incidents in the SA gold operations during the first
half of 2018, our safety performance has returned to industry
leading safety levels. The 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 operations.
The SA gold operations have seen an improvement in safety with
no fatalities since 25 August 2018, and 563 fatal free days and
11 million fatality free shifts were achieved on 11 March 2020.
The SA gold operations are amongst the deepest in the world,
extending to more than 3km below surface, which makes it a
truly worthy achievement.
Sadly though, the SA PGM operations recorded six fatalities
during the year. The US PGM operations had an increase in
injuries during the first half of 2019 but improved safety in the
second half of the year.
ZERO HARM STRATEGIC FRAMEWORK
Our Zero Harm Strategic Framework was developed in
collaboration with organised labour and the Department of
Mineral Resources and Energy in South Africa through a series of
multi-stakeholder safety summits convened during 2018
(see
page 167 for more detail).
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.
ZERO HARM STRATEGIC FRAMEWORK
OUR VALUES
Commitment
Accountability
Respect
Enabling
Safety
ENGAGED LEADERSHIP
ENABLING ENVIRONMENT
Aim to maintain a safe working
environment with equipment, tools and
material that enable sustainably safe
production
• Real risk reduction initiatives ongoing
– Working place layout improvements
• Focus on the elimination of A Hazards
– Infrastructure improvement
• Rail-bound equipment safety
enhancements
– Rock mass management
EMPOWERED PEOPLE
Continue to train people to apply relevant
standards and procedures to work safely
• Safe production leadership and culture
• Individual, team and organisation
• Mirror sessions at SA gold operations
• Values-based decisions intervention
• Safety days
FIT-FOR-PURPOSE SYSTEMS
Subscribing to international best practice
principles and integrated systems with a
view to certification in the longer term
• Bow-tie risk management process introduced
– University of Queensland coaching
sessions on critical controls
– Root cause analysis
• Independent high potential incident reviews
– Section 23 withdrawals reinforcement
• Life-saving rules introduced
• Enhanced Trigger Action Response Plan (TARP)
for improved rock mass management
• ISO 45001 Occupational Health and Safety
Management System implementation on track
• ICMM membership
Sibanye-Stillwater Integrated Report 2019 165
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION COMMITMENT TOWARDS SAFE PRODUCTION CONTINUED
ENABLING ENVIRONMENT
An ‘enabling environment’ aims to maintain a safe working
environment with equipment, tools and material to enable
sustainably safe production. Real risk reduction initiatives include:
• Working place layout improvements
• Improved ventilation conditions
• Focus on the elimination of A Hazards (high-risk hazard which is
likely to lead to a fatal accident)
• Infrastructure improvement
• Rail-bound equipment safety enhancements
• Enhanced rock mass management
This cultural transformation process will be governed by external
and internal performance monitoring measures including formal
joint management-worker health and safety committees.
In the US operations, 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. In 2019, cross-functional teams worked through
the year on implementing or improving key focus areas including
foundational support for the CARES values, incident investigation
and reporting, job safety observations, training, development of
regional standards, and leadership development.
As an example, the enhanced rock mass management approach
receives significant attention in order to reduce the incidents and
consequences of uncontrolled falls of ground.
For more information on the culture growth programme,
please refer to Empowering our workforce on page 141 of
this report.
We have embarked on a project to evaluate all available
‘seismicity’ related research in order to establish improved
predictability and forecasting of seismicity. The objective is to
improve real time measurement leading to improved response to
seismicity. Several leading academics within the field of seismicity
will participate in evaluating work and identifying opportunities to
improve overall predictability and forecasting models. This could
be through proposing additional fundamental research or new
means of modelling, and should also include research into data
generation through measuring of micro seismicity. Academics will
share their knowledge within their own areas of expertise and
research will be further guided by the Sibanye-Stillwater Global
Safe Production Advisory Panel.
Technology enhancement on various fronts is being pursued to
make mining safer. Some other focus areas include improvements
in the use of rail bound equipment, trackless equipment and
ground penetrating radar.
EMPOWERED PEOPLE
Empowered people, in the context of the safe production
framework, means ensuring that the required number of trained
people apply relevant standards and procedures to work safely.
As part of organisational growth, we have intensified our efforts
across the Group to review our organisational culture and
leadership to ensure that safe production is inculcated as the
foremost consideration in decisions at all levels. It will be a core
strategic thrust over three years.
Among the several focused initiatives of the cultural transformation
process, we have embarked on an entrenchment of behaviours
associated with our values throughout the Group. With the
assistance of consultants, we will conduct personal engagement
with every employee in his or her native tongue to ask them
what we should do more of and less of to be successful. Voting
will then take place on the behaviours to be adopted. Further
consideration is being given to the implementation of improved
mine operating systems, building on the values roll out process.
166
Sibanye-Stillwater Integrated Report 2019
Team briefing sessions before the underground shift starts
Safety sign to guide employees in case of emergency
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE FIT-FOR-PURPOSE SYSTEMS
With regard to our fit for purpose systems, we operate in
accordance with recognised health and safety standards and
are preparing for formal certification in terms of the ISO 45001
occupational health and safety management system by 2020.
Sibanye-Stillwater embarked on the process of becoming a
member of the International Council on Mining and Metals
(ICMM), which entails commitment to ICMM’s 10 principles,
which promote responsible mining to ensure that the industry
is safe, fair and sustainable globally. Following the acquisition
of Lonmin, an existing ICMM member, the Sibanye-Stillwater
Group went through the ICMM’s rigorous company membership
assessment process, conducted over several months in 2019, and
qualified and was admitted formally on 27 February 2020, based
on its high level of standards and practices. For more about the
https://www.icmm.
ICMM admission process, please refer to
com/admission-process.
The TARP (Triggered Action Response Plan) which is focused
on detecting and dealing proactively with a change in rock
mass characteristics at the appropriate level, receives significant
attention in order to reduce rock mass failure which could result
in uncontrolled falls of ground.
An intensive programme promotes responsible application of
the provisions of Section 23 of the Mine Health and Safety Act
(MHSA), which affords employees the right to withdraw from
unsafe working conditions. The enforcement of this and Section
22, which covers employees’ duties towards health and safety,
was continued in 2019.
In addition to performance monitoring and ensuring compliance
with the relevant legislation in each jurisdiction, and inspections
by relevant government departments and agencies, relevant
safety and health performance reports are submitted to executive
management with ultimate oversight by the Safety and Health
Committee of the Board.
As integrated risk management is an essential component of the
Sibanye-Stillwater safe production approach, we have increased
the use of bow-tie methodology to enhance critical risk controls.
This software analysis tool enables the systematic identification
of specific causes and threats which can negatively affect the
Group. The tool also measures the effectiveness of current
controls for threats and identifies which specific threats need
further attention.
Queensland University has assisted in the training of senior
management and practitioners in risk management. A team,
who assisted in the development of the material, was trained
according to the ‘train the trainer’ model and will be used to train
their respective teams on the risk management process.
Refer to the report on the Safety and Health Committee in
Corporate governance on page 88.
MULTI-STAKEHOLDER SAFETY AND HEALTH
TASK TEAMS
In 2019, stakeholders continued with safety and health
summit work begun in 2018.
A series of multi-stakeholder summits were convened in 2018
to address safety and health concerns, which resulted in an
agreement between Sibanye-Stillwater, organised labour and
the Department of Mineral Resources and Energy, on a health
and safety compact for the SA gold operations. All three
stakeholders formally committed to working together to make
workplaces safer, protect jobs and collaborate in all matters
pertaining to health, safety and well-being.
The Department of Mineral Resources and Energy, 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 committing to achieving zero harm, through
constructive, transparent collaboration and compliance.
Task teams were formed, comprising four representatives
each from management and organised labour, who visit
sites to monitor progress and provide feedback on six
work streams: organisational culture transformation,
values alignment, leadership development, effective
communication, high impact training and safe production.
Our Zero Harm Strategic Framework was also a product of
these safety summits
(see page 165).
In 2019, three task team sessions were held on effective
communication, during which terms of reference were
drafted. Effective communication is seen as key to addressing
the trust deficit between organised labour and management.
Sessions have also been held on high impact training and
safe production. At a session on culture transformation, the
nomination of a champion from the unions was requested.
In the future, task teams will meet on a monthly basis and
provide report backs to employees.
Safety and health summits will be held at SA PGM
operations during 2020.
Sibanye-Stillwater Integrated Report 2019 167
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
COMMITMENT TOWARDS SAFE PRODUCTION CONTINUED
PERFORMANCE
The enhanced safety initiatives, implemented following the series
of anomalous fatal incidents in 2018, helped achieve significant
improvement in the Group’s safety performance in 2019, and
particularly at the SA gold operations. We continue to apply
ourselves unstintingly to improving further as we work towards
our goal of zero harm.
Regrettably, in 2019 we lost six (2018: 24) lives at the SA
operations – zero fatalities (2018: 21) at our SA gold operations
and six (2018: 3) at our SA PGM operations. The US PGM
operations have been fatality free since October 2011.
Three of the fatalities in the SA PGM operations were as a
result of fall of ground related incidents while two were due to
trackless mobile equipment operations and one to rail bound
equipment. These were investigated in depth by the Department
of Mineral Resources and Energy, management, stakeholders and
specialists in the relevant fields to identify the root causes and
to devise preventative measures that were implemented across
all relevant operations. 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 our human
resources teams, as well as health and safety stewards.
IN MEMORIAM
The Board and management of Sibanye-Stillwater extend their deepest condolences to the families, friends and colleagues of our
six employees and contractors who lost their lives in the line of duty during the year.
Date
Operation
Name
Occupation
Incident
20 March 2019
05 June 2019
Thembelani shaft,
Rustenburg
Thembelani shaft,
Rustenburg
Mr Madondana
Manzenze
Rock Drill Operator
Fall of ground
Mr Johannes Tumelo
Scraper winch operator
Fall of ground
28 August 2019
Hossy shaft, Marikana
Mr Sonwabo Bhani
LHD Operator
Trackless mobile machinery
16 September 2019
Saffy shaft, Marikana
Mr Zolile Booi
Loco Operator
Rail bound equipment
12 October 2019
30 November 2019
Thembelani shaft,
Rustenburg
Bathopele Central Shaft,
Rustenburg
Mr Mauricio Chau
Team Leader
Fall of ground
Mr Willem Rakgomo
Utility Vehicle Operator
Trackless mobile machinery
Lost time injury frequency rate (Group)
Fatal injury frequency rate (Group)
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0
6.74
5.87
6.62
5.78
5.89
5.23
2015
2016
2017
2018
2019
0.18
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0
0.10
0.07
0.06
0.161
0.036
2015
2016
2017
2018
2019
Serious injury frequency rate (Group)
Fatal injury frequency rate (SA gold operations)
5
4
3
2
1
0
4.68
3.88
4.16
3.57
3.70
3.03
2015
2016
2017
2018
2019
0.250
0.200
0.150
0.100
0.050
0
0.237
0.117
0.108
0.086
0.065
2014
2015
2016
2017
2018
2019
0.000
Note: statistics on the above graphs are based on a rate per million hours worked
168
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Safety performance
Fatalities
Fatal injury
frequency rate 3
Number of lost-time
injuries
Lost-time injury
frequency rate
(LTIFR) 3
Number of serious
injuries
Serious injury
frequency rate
(SIFR) 3
Medically treated
injury frequency
rate (MTIFR) 3,4
Number of Section
54/regulator work
stoppages
Production shifts lost
owing to Section 54/
regulator stoppages
Total hours worked
(millions)
2019
US
2018
US
2017
2 US
Group
operations SA operations
Group
operations SA operations
Group
operations 1 SA operations
PGMs PGMs* Gold
PGMs PGMs
Gold
PGMs PGMs
Gold
6
0
6
0
24
0.04
0.00
0.06 0.00
0.16
0
0
3
21
11
0.05
0.24
0.07
0
0
2
9
0.04
0.09
876
41
475
360
881
35
268
578
939
16
259
664
5.23
10.13
4.77 5.62
5.89
9.97
4.68
6.52
5.78
1 7.80
4.69
1 6.33
508
35
248
225
553
25
126
404
580
5
143
432
3.03
8.65
2.49 3.52
3.70
7.12
2.20
4.53
1 3.57
6.28
2.59
4.12
3.17
22.24
3.06 2.14
2.69
23.94
1.95
2.32
1 2.60
24.65 1 2.44
1 2.26
126
6
35
85
263
na
44
219
230
na
26
204
226
5 na
214
12
545
na
149
396
238
na
49
189
167.5
4.0
99.4
64
149.5
3.5
57.3
88.6
162.1
20.6
55.2
104.8
Note: Safety statistics include contractors
1 Restated due to rounding and re-application of Group safety definitions
2 May to December 2017
3 Per million hours worked:- total number of accidents x 1,000,000 / man hours
4 Also referred to as treat-and-return injury frequency rate (TRIFR), which includes certain minor injuries
5 The US PGM operations have not tracked this figure to date
* Includes Marikana operation from June 2019
Our performance in perspective: SA peer comparison1
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
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
2.49
4.53
1.51
1.29
3.52
4.21
2.90
2
3
1
1
2
3
1
4.77
5.97
2.14
2.10
5.62
7.16
5.35
2
3
1
1
2
3
1
0.060
0.066
0
0.027
0.00
0.12
0.00
2
3
1
3
0
3
0
Sibanye-Stillwater Integrated Report 2019 169
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION COMMITMENT TOWARDS SAFE PRODUCTION CONTINUED
SA GOLD OPERATIONS
The primary safety risks in the SA gold operations include, rock mass
failure, vertical transport, rail-bound transport and heat.
On 11 March 2020, the SA gold operations achieved 11 million
fatality free shifts. SA gold operation employees received various
rewards (e.g. food vouchers, gas ovens etc.) for achieving nine million,
10 million and 11 million fatality free shifts and for their contribution
towards safe production.
Sibanye-Stillwater attributes the reduction in fatalities at the SA gold
operations to a focus on the following approaches:
• Ensuring that line leadership take ownership of their areas of
responsibility; are well trained, with an understanding of bow tie
procedures and critical controls; are passionate and committed; and
are insistent on full compliance and do not tolerate deviations.
• Achieving clarity on what is acceptable and what is not acceptable,
particularly behaviour around an A hazard. A hazards need to be
closed as soon as possible, with a leader ensuring that a close out is
done, while entering an unsupported area is a dismissible offence.
Our cardinal rules were redesigned around A hazards to become
the rules of life, rules that if disobeyed could be life-threatening.
• Improving audit quality. Safety officers’ bonuses at the SA
operations used to be tied to tonnes mined, as well as safety, but
this has changed in 2019 and they are based only on the quality
of their audit and the close out of ‘A’ hazards. In addition, more
detail on deviations is required to be reported, including how many
deviations and if there are repeats.
• Introducing a culture-based behavioural strategy at all the
underground SA operations, facilitated by outside consultants,
which provided a safe space for all employee levels to engage on
safety matters.
• Deep-level analysis of critical controls, the controls that are critical
to preventing fatal events. This resulted in the engineering function
doing a full redesign of rail bound equipment, winches and rigging
and other areas, with controls being engineered in.
In a direct response to the five heat-related fatalities at Kloof’s Ikamva
shaft in 2018, additional work has been conducted on improving
ventilation in working areas and increasing employee awareness
about the importance of in-stope ventilation.
2019 – cumulative milestones achieved
(by shafts, operations, segments and the Group)
20
18
16
14
12
10
8
6
4
2
0
19
12
10
8
8
1 million
2 million
3 million
4 million
5 million
Personal protective equipment (PPE) utilised by employees as part of
preventing harm or injury
170
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SOUTH AFRICAN MINING INDUSTRY SHE
AWARDS DAY 2019
The intense focus on our efforts towards zero harm was
recognised at this year’s SHE Awards Day when the Group
received the JT Ryan Award for the mining company with the
most improved safety performance. The full list of awards
received is as follows:
JT Ryan Award
Sibanye-Stillwater for the mining company with the most
improved safety performance
Platinum
1st place: SA PGM operations Bathopele mine
3rd place: SA PGM operations Kroondal West
Process
1st place: ChromTech at SA PGM operations
2nd place: Precious Metals Refinery, South Africa
Winners are determined by an impartial panel of judges
representing the Southern African Institute of Mining and
Metallurgy (SAIMM), the Association of Mine Managers of
South Africa (AMMSA), the South African Colliery Managers’
Association (SACMA) and the Metallurgical Mine Managers’
Association (MMMA).
LTIFR performance improved from 6.52 per million hours worked in
2018 to 5.62 in 2019 and the SIFR performance improved from 4.53
in 2018 to 3.52 in 2019.
The number of safety-related stoppages decreased from 219 Section
54s in 2018 to 85 in 2019.
Tools, equipment and material were the main contributors to injuries
at our gold operations in 2019, representing 23% (2018: 25%) of
total injuries. Fall of ground-related injuries accounted for 15% (2018:
19%) of the total. It was encouraging to note an improvement of
over 18% (46 to 38) in injuries related to rail-bound equipment. 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)
SA PGM OPERATIONS
The fatalities at the SA PGM operations were investigated in-depth
by the Departments of Mineral Resources and Energy, management,
stakeholders and specialists in the relevant fields to identify the root
causes and to devise preventative measures. Measures included,
but were not limited to, revised standards and procedures as
well as improvements to equipment and infrastructure that were
implemented across all relevant operations. Where applicable, re-
training was conducted on current requirements as well as new or
changed methods and standards.
Management continues to focus on the top risks of the 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.
LTIFR performance deteriorated from 4.68 per million hours worked
in 2018 to 4.77 in 2019 and the SIFR performance deteriorated from
2.20 in 2018 to 2.49 in 2019.
The number of safety-related stoppages decreased from 44 Section
54s in 2018 to 35 in 2019.
Low energy incidents remain main contributors to injuries on duty and
contributed 68% towards the total amount of incidents recorded.
Interventions are implemented continuously to raise awareness and
prevent 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 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
measure other safety improvement initiatives highlighted through
investigations, statistical analysis and leading indicators.
A major drive initiated in 2018 to analyse all controls to ensure
their effectiveness continued in 2019. Senior management training
on critical controls was undertaken with external consultants.
Planning of areas to be worked is a critical control, and SA PGM
operations have used the bowtie methodology to design a checklist
to identify shortcomings in this planning process. The challenge is
to communicate with all stakeholders all necessary information from
materials required to instructions from service departments to risk
ratings from the rock engineering function. Mine managers must sign
off on a full check list of an area to be mined.
The SA PGM operations also focused on the identification and closure
of A hazards, with the help of the data analysis tool Qlikview, and
information provided by safety officers in their inspections and safety
audits. Weekly newsletters are sent out to the operations highlighting
A hazards and the importance of closing them to raise awareness.
There has also been an emphasis on detailed reporting of repeats
of non-conformances. These are reported by safety officers directly
to the Chief Safety Officers and Safety Managers. As a result of this
increased scrutiny, repeat non-conformances are reducing in number.
Sibanye-Stillwater Integrated Report 2019 171
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION COMMITMENT TOWARDS SAFE PRODUCTION CONTINUED
Training is recognised as a high value input and training material is
fully aligned with all standards and procedures as approved by the
different standards committees. If there is a failure in adherence
or understanding of certain issues, re-training and coaching is
utilised widely to enhance knowledge and know-how and to
refresh employees on the correct processes to be followed in their
respective occupations. These will include any amendments, changes
or new processes and procedures following investigation outcomes.
Marikana operations
At the Marikana operations, in the wake of the two fatalities since
June 2019, the operation is acutely focused on weekly full compliance
audits. Every supervisor completes a full compliance audit in his area,
which is followed up by our safety officers. Action is taken on non-
compliances, which can result in fatalities and serious injury.
Several safety days as well as the Minerals Council’s safety days were
conducted across all operations. Through these, critical behaviours
were identified per occupation, providing excellent leading indicators,
and allowing identification of weaknesses. Adherence to the
Marikana Life Rules is constantly being driven and energised.
Marikana is in the process of implementing and rolling out the
Syncromine and Qlikview safety systems, but for the interim has built
a safety officers inspection protocol onto which details of every daily
inspection is loaded to help identify which areas need attention.
Inspections are conducted in the worst areas and cross audits have
been introduced across the shafts. In addition to other actions tabled
and implemented, a fall of ground workshop will be held at Marikana
and this will be rolled out to all platinum operations during 2020.
Marikana mining is certified to OHSAS 18001 and ISO 14001 and is
moving towards ISO 45001.The shafts on care and maintenance are
excluded from ISO 45001 but are certified on ISO 14001.
Processing
At the SA PGM processing, no serious injuries were incurred. We
have retained ISO 9000 and ISO 14001 processing certification and
are migrating to ISO 45001. The three systems have been integrated,
resulting in increased efficiency and cost-effectiveness, as separate
safety, environmental and quality teams are not required.
There is a significant focus on risk identification and mitigation, with
specific initiatives having been put in place for management. As an
example, management daily uses a forward energy model to predict
high risk work where early entry examinations are required. Audits
and critical task observations conducted by line management are
measured on a quarterly basis to calculate balanced scorecard pay.
In the area of fatality prevention, we have introduced a catastrophic
risk management process, through which we can identify potentially
catastrophic events and their associated critical controls and how
they are performing.
US PGM OPERATIONS
The SIFR increased to 8.65 (2018: 7.12) per million hours worked,
while the LTIFR remained virtually flat at 10.13 (2018: 9.97) per
million hours worked. This is in line with an increase in injuries
associated with strains accounting for 26% (2018: 13%) and pinch
points for 13% (2018: 8%) of total reportable injuries.
The medically treated injury frequency rate (MTIFR) decreased to
22.24 (2018: 23.94) per million hours worked. This is in line with a
notable reduction in reportable injuries resulting from a slip, trip or fall
accounting for only 13% (2018: 27%) as well as those being struck
by an object accounting for only 17% (2018: 23%).
A series of falls of ground incidents at the Stillwater (six in total) and
East Boulder (two in total) mines negatively impacted performance.
There were no injuries. The Mine Safety and Health Administration
issued 103(k) orders to ‘control’ the affected areas until an
investigation occurred and remediation plans were approved. Incident
investigations and root cause analysis actions were completed and the
general ground control standards were re-evaluated. The investigation
team consisted of subject matter experts from the US Region,
regulatory inspectors, independent consultants, and a Sibanye-
Stillwater rock mechanics expert from the SA PGM operations.
Action plans included ground control operations audits of each
heading, engineering ground control evaluations, formal training on
rock mechanics for geologists and other targeted employee groups,
additional rock mechanic engineering staff and additional third party
audits.
Mid-year there was a regulatory change which necessitated more
detailed reporting on ground supports and so we embarked on
significant internal and external evaluations of our ground support
installations. As a result of this, we are conducting upskill training
of our production geologists so that they can assist in recognising
challenges associated with our ground supports.
ISO 45001 is our safety and health standard. Mid-year, we conducted
a gap analysis on our GET Safe safety and health management
system, which identified the implementation stages of its various
modules. Twelve of the 20 modules were found to be in full
conformance and four more were in partial conformance. Action
plans to improve conformance are ongoing in 2020.
Each of our crews has a miners’ representative, who acts as a safety
leader and accompanies our regulatory inspections. The regulatory
agency completes an inspection of each of our mines every quarter. All
bonuses paid to miners’ representatives have safety as a key metric.
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.
172
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE US PGM operations: injuries by category
2019
2018
1 2017
Rockfall
Struck by objects (tools,
equipment and others)
Caught in/between
Strains/soft tissue injuries
Operating equipment
Operating jackleg
Eye injuries
Chemical burns/other
Slips/trips/falls
1 May to December 2017
FUTURE FOCUS
7
9
7
14
6
3
1
0
7
4
12
4
6
4
3
2
1
13
3
8
3
3
1
3
3
1
2
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 in 2020, and the roll-out
of the bow-tie risk assessment methodology and critical controls.
US PGM operations future safety focus is continuing to empower
people, enhancing an enabling environment and ensuring fit for
purpose systems. This involves providing a minimum of 40 hours
of safety/leadership training for all salaried staff; refinement of
training departments at all three sites; closing GET Safe gaps in
leadership development, management systems coordination,
fatality prevention and risk management, and incident reporting
and investigation; and, continued improvement of the Newtrax
Caplamp and Mobile Telemetry System.
Employees at the UG2 concentrator plant
Employee working at the US PGM Columbus Metallurgical Complex
Sibanye-Stillwater Integrated Report 2019 173
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE
Membership
Better
lives
EMPLOYEES
Fair
market
access
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
HOW WE DID IN 2019
SUCCESSES
21%
reduction in silicosis
cases reported
CHALLENGES
Planning and dealing with
COVID-19, considering more
than 80,000 employees
16%
increase in employees on
medical schemes
31%
decrease in the rate of
noise- induced hearing loss
HEALTH AND WELL-BEING
Sibanye-Stillwater continues to
make progress in aligning our
health strategy with that of
the United Nations Sustainable
Development Goals (SDGs) 2015
to 2030 with a particular focus on
goal three which refers to health
and well-being.
The strategy is intent on providing equitable
health care based on health needs and
financial risk protection for employees and
their families, and is aligned to the principles of
Universal Health Coverage and National Health
Insurance (NHI). It will provide employees
with an affordable and cost-effective funding
mechanism for health care needs while also
maintaining efficiencies. In addition, the
strategy focuses on preventative health care
with enhanced occupational health services
which will support a healthy workforce.
174
Sibanye-Stillwater Integrated Report 2019
Health care is available to our employees at the medical centres
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
SA OPERATIONS’ HEALTH STRATEGY
2019-2020
2021-2023
2024-2030
• Align medical scheme(s)
• Standardisation of SA
• Intentional bias towards
in-house medical scheme
• Align to National Health
Insurance (NHI)
operations’ health and wellness
• Sustaining efficiency of health and
• Focus on service provider
• People, processes and systems
focus for efficiency
wellness
networks
• The Council for Health Service
Accreditation of South Africa
(COHSASA) accreditation of
in-house health facilities
• Enhanced occupational health
services and wellness efficiency
SDG three contains a set of comprehensive health targets that are aimed at addressing health challenges including non-communicable
diseases, injuries and environmental issues. The goals call on inter-sectorial action to achieve policy reforms whereby universal health coverage
(UHC) for all people can be achieved through a sustainable approach based on efficiency, health services integration and people centred care.
UHC is defined as “ensuring that all people can use promotive, preventative, curative, rehabilitative and palliative health services they need,
of sufficient quality to be effective while ensuring that the use of the service does not expose the user to financial hardship.” (World Health
Organization, Health in 2015 from MDGs to SDGs.) The United Nations and several heads of state have reaffirmed the commitment to UHC
“moving together to build a healthier World”, including South Africa, in the form of NHI. The figure below illustrates the three dimensions of
UHC that need to be addressed to achieve UHC by 2030.
World Health Organization moving towards the three dimensions of UHC
Reduce cost
sharing and fees
Direct costs:
proportion
of the costs
covered
Include
other
services
Extend to:
non-covered
Current
pooled funds
Population:
who is covered?
Services:
which services are covered?
Sibanye-Stillwater Integrated Report 2019 175
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
5
1
0
2
,
T
I
K
L
O
O
T
Y
T
E
F
A
S
O
H
W
M
O
R
F
D
E
T
P
A
D
A
Health system strengthening is fundamental in driving the policies
and actions to achieve UHC. Sibanye-Stillwater has adopted the
WHO approach to health systems strengthening which includes
the six elements listed below. As an outcome of our health system
strengthening programmes, Sibanye-Stillwater hopes to deliver
improved health, system responsiveness, financial risk protection
and efficiencies. The six elements focused on by Sibanye-Stillwater
include:
• A healthy, well-performing workforce: Sibanye-Stillwater ensures
that its employees have access to the highest skilled professionals
in the region by selectively contracting with centres of excellence
and professionals
• A well-functioning information system that ensures the use of
reliable and timely information on health determinants, health
systems performance and the health status of employees through
annual surveillance checks. Sibanye-Stillwater is also exploring
opportunities to enhance existing digital radiology capabilities by
including computer aided diagnostics
• A comprehensive pharmaceutical supply system which ensures
access to essential medical products, vaccines and technologies.
Our service offers employees access to the most advanced
technologies and current treatment protocols and guidelines
• A good health financing system which protects employees from
financial catastrophe. A total of 66% of Sibanye-Stillwater
employees are insured through medical aid schemes that protect
our employees from the financial risk of high medical costs
• Leadership and governance provided by Sibanye-Stillwater ensures
role clarity and accountability among all stakeholders and the
promotion of partnerships within the system
• Safe quality care is ensured in the system by focusing on the four
elements of efficiency, effectiveness, safety and patient centric
care. This is achieved by measuring and monitoring the inputs and
outputs of the various role players and continuous improvement
Technical
Productive
Allocative
Efficiency
Patient
centric
Effective
Safety
Timely
Equitable
Surgical
Hospital acquired
infections/hand hygiene
Antimicrobial resistance
Venous Thromboembolism
Health outcomes
Risk factors
Coverage
Health system
An employee visits the medical centre close to the operations
176
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
In addition to this commitment to UHC and health systems strengthening, the Sibanye-Stillwater health model is evolving and has undergone
significant transition over the past five years from being both a health care funder and provider of services to one in which health services are
provided for by a multitude of stakeholders and partnerships which Sibanye-Stillwater manages as per the business context diagram below. By
actively managing the health system, Sibanye-Stillwater can ensure delivery of quality health care to employees while not ignoring the needs of
regulators and partners.
THE SIBANYE-STILLWATER’S SA OPERATIONS’ BUSINESS CONTEXT
Department of Mineral
Resources and Energy
• Mine Health and
Safety act
• Mandatory codes of
practice
Department of Labour
• Labour Relations Act
• Compensation for
Occupational Injuries
and Diseases Act
• Oral Hygienists
Association of
South Africa
• Rand Mutual
Assurance (RMA)/
Workers Compensation
Assistance
Company:
Sibanye-Stillwater
• SA gold operations
• SA PGM operations
ODIMWA
levies
Department of Health
• Health Act
• National Health Act
• Health Professionals Act
• Nursing Act
• Pharmacy Act
• Occupational Diseases in
Mines and Works
Act (ODIMWA) levies
RMA insurer
• Health and wellness
division
• Corporate health
occupational medicine
Employer
participation
agreements
Council for Medical
Schemes
• Employees
• Medical scheme
members
• Principle members
of medical schemes
Contracts in terms of
scheme rules and pay
contributions in lieu of
benefits
Medical schemes
• Health benefits risk
insurance and claims
administration
Designated service
providers
Hospitals, doctors
and allied health care
professionals contracted
by individual medical
schemes
In most cases, employee health is closely related to employee safety. Our safety value encompasses occupational health and well-being, which in
turn, can affect safety performance. Sibanye-Stillwater 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 as required by the Mine Health and Safety
Act (MHSA). In South Africa, as part of our safety values campaign and in line with employees’ rights and responsibilities regarding workplace
safety, employees must, before they start any work, confirm at their safety team briefings that they are ready for work daily by declaring “I am
fit, healthy and competent to perform my tasks”.
Sibanye-Stillwater Integrated Report 2019 177
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
In pursuit of our ultimate goal of zero harm, Sibanye-Stillwater has
built a health system that aims to safeguard the health and well-being
of our employees and contractors, so that they are appropriately
positioned to undertake their daily responsibilities safely and
efficiently. Guided by our CARES values, our health and wellness
model in South Africa is designed to address the risks presented by
the internal and external environments facing employees. The care we
provide is based on six broad pillars (as part of the health and wellness
model) with the aim of delivering effective, safe, quality personal and
non-personal health interventions to those who need them, when
and where needed, with minimum waste of resources.
• Access to occupational health resources that assess health risks,
determine fitness to work, and manage disease and rehabilitation
• Shaft clinics within a walking distance to the workplace with
qualified primary health care 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 health care clinics with qualified nurses
operating during office hours
• Primary health care 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
HEALTH CARE PROVISION AT THE US PGM
OPERATIONS
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. However, 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. South-central Montana has two reputable and
competing hospital systems, each having a presence in many of
the outlying rural communities.
At the US PGM operations, high-dollar claimants are the primary
drivers of our cost trend. Statistics demonstrate that most of
our health care 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 health
care 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
health care 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 health care
questions and to manage chronic conditions. Feedback on the
new health plan is positive so far, and costs are remaining flat.
Emergency vehicles like these are manned by paramedic teams
An employee working at our US PGM operations
178
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA OPERATIONS’ MEDICAL SCHEME STRATEGY
The health care strategy adopted by the SA operations, aligned
as it is to goal three of the UN’s SDGs, advocates a preventative
approach, which funds and manages a continuum of health care
in preference to providing health care services. This is exemplified
by the growth in medical scheme membership from 8% in 2013
to 66% in 2019 and the support for UHC.
During 2018, it was agreed to transition employees at the SA
gold operations from provided health care to a medical scheme
model as part of the formal wage agreement. The medical
scheme model is advantageous to both Sibanye-Stillwater,
providing cost efficiencies, and employees, providing improved
access to medical care and the opportunity for partners and
family to join a medical scheme. Implementation is likely to take
place in the second quarter of 2020.
For the SA PGM operations, the in-house medical scheme
continues to deliver effective health care services and has
entrenched its position as the scheme of choice among
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.
The amalgamation of the Marikana operations and the Sibanye-
Stillwater in-house Sisonke Medical Schemes has been approved
in principle by the Boards of both schemes. The amalgamation of
the two in-house medical schemes will see the achievement of
the long-term strategic objective for the Group which is to invest
in a single multi-commodity medical scheme which can provide
a customised solution for all employees and their dependants by
2021, while also leveraging economies of scale.
Nutritious supplements are provided to underground employees
PERFORMANCE
Our quarterly health forum, including representatives of organised
labour, focused on a 12-year outlook for health and repositioning
of health care funding as well as the provision of health care to all
operations. Specifically, much progress has been made within the
medical schemes’ environment with an improved understanding and
alignment of the overall strategic objectives among all stakeholders.
This has resulted in close collaboration with the appointed medical
schemes with improved monitoring of performance and outcomes
of health programmes. In addition, Sibanye-Stillwater is in the
process of identifying and appointing reputable primary health care
service providers to operate the onsite clinics. Sibanye-Stillwater will
provide quality assurance by ensuring accreditation of the clinics and
compliance with the Department of Health’s Ideal Clinic Standards.
In 2018, through the Chief Medical Officers’ Network, we committed
to address 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. In 2019, we continued to focus
on mental health resilience, as we seek to understand the social and
ethnographic determinants of mental disease. We also encouraged
physical fitness for better health and better outcomes from injuries.
As a result of the review of our workplace disaster management, we
split our emergency and disaster services, in the interests of efficiency
and responsiveness.
The centralisation of the occupational health service in the SA gold
operations (West Wits and Beatrix), as well as at the Marikana
operations, is well underway with construction set to be completed
by the second quarter of 2020.The project will see the integration
of functional and physical work capacity testing as well as the high
performance centre and final phase rehabilitation programmes into
the ambit of occupational health. The centralisation will increase
efficiency and improve turnaround times.
Throughout the Group, we are focusing on employing and refining
technology to improve occupational health services. Health care
technology that is designed to track and monitor patients and
improve the speed of service in our health centres has been
standardised and rolled out across the Group with the aim of
providing the operations with a one-day turnaround time. This means
we can provide our patients with better health care all round by
improved surveillance and data analytics to understand trends and
proactively address issues. The new technology will also allow for peer
review and consultation.
Furthermore, we have commissioned a project to review our current
on-boarding processes and will be investing in technology which will
speed up the processes and cycle times at our induction centres in
terms of initials, exits, annual medicals and medicals after absences
and will notify us where an employee is not compliant. The project is
set to be completed by the third quarter of 2020.
The integration of the Marikana operations includes a review of
the health system and funding of health care which includes the
hospital, occupational health and primary health care centres to
which communities have access. Significant work is being done to
bring about efficiencies, and this will include transitioning Marikana
to the Sibanye-Stillwater health care model by the end of 2020, and
Sibanye-Stillwater Integrated Report 2019 179
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
the repositioning of the Andrew Saffy Memorial Hospital to a 24/7
community health centre which will be operated by a contracted third
party. The proposed outsourcing of the primary health care clinics to
a local service provider will form part of the enterprise development
assistance offered by the company.
To further increase efficiencies, we are working on the alignment
of codes of practice which will allow rationalisation of resources.
Associated with this process, is the alignment of terminology
across the operations, for example regarding people’s positions and
departmental functions, as well as the extension of the ISO 45001
accreditation to other operations in the SA PGM operations.
In a further rationalisation of resources, at the SA gold and PGM
operations on site primary health care clinics, primary health care
qualified nurses attend to the majority of cases, with fewer referrals to
doctors at the hospitals. For instance, nurses deal routinely with HIV,
TB and hypertension cases, which represent some 98% of our chronic
diseases. This approach will also be instituted at Marikana in time.
At the Rustenburg operations, against a background of community
unrest, which affects day-to-day operations around the shafts, we
are making increased efforts to build community relationships.
We will be hosting community leaders at our occupational health
centre and will acquaint them with our engagement processes. The
exercise will increase insight into the stringent requirements per job
category including the physical and functional attributes necessary
to be successfully appointed at the company. This will help create an
understanding of the inherent requirement of specific job categories
and the possible reasons why a person might be excluded from
employment on the mine.
SA operations: sources of health care funding (R million)
Medical schemes
Company-funded
Compensation for occupational injuries and
diseases 1 (Rand Mutual Assurance)
Occupational diseases in Mines and Works
Act dust levies 1
Total 1
2019
2018
2017
Total
PGM*
Gold
Total
PGM
Gold
Total
PGM
Gold
948
402
638
103
310
300
725
282
421
12
304
270
714
324
404
21
310
303
337
163
173
213
77
136
208
69
138
32
1,718
3.7
908
29
811
1,220
510
710
1,246
495
751
1 Health care 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)
* Includes seven months of Marikana operations since acquisition in June 2019
SA operations: funding employee health care (number of employees)
2019
2018
2017
Total
PGM*
Gold
Total
PGM
Gold
Total
PGM
Gold
Principal medical scheme members
44,501
37,286
7,215
26,212
18,696
7,516
27,298
18,909
8,389
Company-funded employees
21,970
0
21,970
24,736
0
24,736
24,328
0
24,328
Total employees
67,594
37,286
27,933
50,948
18,696
32,252
51,626
18,909
32,717
Employees on medical schemes (%)
66
94
26
51
100
30
53
100
26
* Includes seven months of Marikana operations since acquisition in June 2019
SA operations: medical conditions under management 1
2019
2018
2017
Total
PGM*
Gold
Total
PGM
Gold
Total
PGM
Gold
Chronic medical conditions (schemes)
28,018
21,621
6,397
10,862
6,871
3,992
13,532
8,546
Chronic medical conditions (company)
8,830
0
8,830
8,364
0
8,365
8,978
0
4,986
8,978
Total
36,848
21,621
15,227
19,227
6,871
12,357
22,510
8,546
13,964
* Includes seven months of Marikana operations since acquisition in June 2019
1 Statistics represent the number of conditions, with some employees having multiple conditions
180
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA operations: employees registered on chronic disease management programmes
Chronic medical conditions
Principal medical scheme members
Company-funded employees
Chronic medical scheme members
Chronic company-funded employees
Total employees with chronic medical conditions
* Includes seven months of Marikana operations since acquisition in June 2019
SA operations: occupational diseases (number of cases reported)
SA
operations
Southern Africa region
PGMs*
44,501
37,286
Gold
7,215
21,970
0
21,970
17,033
13,540
7,599
0
3,493
7,599
24,632
13,540
11,092
Silicosis 1
Chronic obstructive airways disease 1
Noise-induced hearing loss 1
2019
2018
2017
Total
PGMs*
Gold
Total
PGM
Gold
Total
PGM
131
68
355
60
39
189
71
29
166
165
70
243
106
41
167
59
29
76
261
50
193
68
13
100
Gold
193
37
93
1 Number of cases reported includes new and resubmission cases
* Includes seven months of Marikana operations since acquisition in June 2019
SA operations: occupational health management
2019
2018
2017
Total
PGMs*
Gold
Total
PGM
Gold
Total
PGM
Gold
Medical surveillance and certificate of fitness
examinations – total 1
Employees
Contractors
194,137
96,650
97,487 123,846
50,146
73,700 145,689
52,852
92,837
153,187
68,704
84,483 101,152
35,140
66,012 103,841
21,673
82,168
40,939
27,946
12,993
22,694
15,006
7,688
41,848
31,179
10,669
Days lost due to health-related absenteeism
736,124 323,232 412,892 776,365 293,822 482,543 826,475 321,104 505,371
1 Includes heat tolerance screening test (HTS)
* Includes seven months of Marikana operations since acquisition in June 2019
SA gold operations: TB rates per 1,000 employees (new and retreatment cases)
Total TB
Pulmonary TB
Extra pulmonary TB
Cardiorespiratory TB
Multi-drug-resistant TB
2019
2018
7.39
5.39
2.01
6.07
0.22
9.75
7.38
1.86
8.30
0.10
2017
10.65
8.72
1.93
9.46
0.38
Sibanye-Stillwater Integrated Report 2019 181
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
VCT offered
VCT conducted
VCT test-positive
Proportion of
workforce tested 3
New recipients of
HAART 4
Category 3-8
employees on HAART
HAART patients who
are employees 5
Employees who
have left HAART
programme 6
HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
SA operations: number of new and retreatment cases of TB
TB
Cardiorespiratory TB
New cases of
drug-resistant TB
New cases of multi-
drug-resistant TB
2019
Total
PGMs*
553
491
284
270
26 Unknown
8 Unknown
Gold
269
221
26
8
2018
PGM
157
155
Total
539
480
13
Unknown
4
Unknown
Gold
382
325
13
4
Total
623
570
28
17
* Includes seven months of Marikana operations since acquisition in June 2019
SA operations: HIV, VCT 1 and HAART 2
2019
Total
PGMs*
Gold
82,670
32,162
1,608
46,940
28,885
1,327
35,730
3,277
281
Total
59,900
20,544
887
2018
PGM
28,153
11,681
170
Gold
31,747
8,863
717
Total
51,122
20,326
1,168
2017
PGM
148
148
0
0
2017
PGM
25,008
9,932
113
Gold
475
422
28
17
Gold
26,114
10,394
1,055
39.5
66
8.7
33.4%
50%
24%
29%
40%
23%
502 Unknown
502
563
5,696 Unknown
5,696
5,638
0
0
563
843
Unknown
843
5,638
5,688
0
5,688
10,744
3,731
7,013
9,745
3,090
6,655
9,761
3,133
6,628
52
0
52
8
0
8
46
0
46
1 Voluntary counselling and testing
2 Highly active antiretroviral therapy
3 VCT conducted as a percentage of total workforce (employees and contractors)
4 Entry-level mining employees (Category 3-8) of the SA gold operations
5 HAART patients alive and on treatment, total employees including category 3-8 employees – excludes Marikana data
6 Employees who left HAART programme within 12 months of starting antiretroviral therapy (including retrenched employees with ill health and
any other labour-related terminations)
*Excludes the seven months of Marikana operations since acquisition in June 2019, due to records still being verified for integration into the Group
182
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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 and 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.
Our success in reducing the TB burden at our SA gold operations,
from 832 cases in 2014 to 269 cases in 2019, can be attributed
to improved access to primary health care at shaft clinics, staffed
by qualified health care professionals who are able to screen and
diagnose 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 90%. In addition, viral load
suppression as a surrogate for effective treatment stands at 76%
across the Group which includes employees registered on medical
schemes disease management programmes. As TB is activated when
a person’s immunity is weak, people enrolled and controlled on 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. As a result,
mainly due to actively seeking TB sufferers and co-ordination of care,
we have seen a 170% decline in the spread of TB since 2013.
Sibanye-Stillwater health services provided strong leadership in the
three provinces in which we operate:
• 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. Sibanye-Stillwater also
participates in the Rustenburg Health Forum which coordinates
health care resourcing and projects in the region. Sibanye-Stillwater
has committed resources to building a forensic mortuary in Brits,
a community health centre in Marikana and an old age home in
Majaekeng
• In the Lejweleputswa district of the Free State, we worked in
partnership with the MHSC and the Department of Health on the
2019 World Aids Day
• In the West Rand district of Gauteng, we work on community TB
contact tracing through the Masoyise iTB initiative, which ensures
that health care workers are trained, and close contacts are
screened for TB
In aligning with the UNAIDS 90-90-90 targets, Sibanye-Stillwater
continues to encourage employees to test annually. In addition to
introducing the newer testing technologies of HIV self-testing to our
employees, we will further prevent new infections by continuing to
encourage employees to seek medical attention for pre exposure
prophylaxis (PREP) and post exposure prophylaxis (PEP). Following the
success and advocacy for HIV self-testing in Sibanye, The Mine Health
and Safety Council (MHSC) has issued guidelines in early 2020 for the
implementation of HIV self-testing in the mining industry as well as the
strengthening of HCT (HIV counselling and testing).
CORONAVIRUS (COVID-19)
The National Department of Health in collaboration with the
National Institute for Communicable Diseases have developed a
comprehensive set of guidelines in preparation for the COVID-19
pandemic. Sibanye-Stillwater has included these guidelines
into the Group Emergency Preparedness plan which will screen
employees with symptoms, those returning from leave and
employees who have had close contact with a confirmed or
probable case. A management toolkit has been distributed to
all operations and health facilities which includes education of
health care workers and PPE.
The plan will also focus on several preventative measures
within the company and community in collaboration with local
government and provincial structures. Measures that are being
rolled out include hand washing, distribution of hand sanitisers
to employees, decontamination of employee conveyances and
education of the workforce.
Contraceptives are available at our SA medical centres
Sibanye-Stillwater Integrated Report 2019 183
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
SOCIO-ECONOMIC FACTORS AFFECTING HEALTH
The social determinants of health and well-being such as smoking,
alcohol consumption and lack of exercise, contribute significantly to
the disease burden. Other behaviours include the sharing of medication
and non-adherence to prescribed medication, stress and anxiety due
to unhealthy relationships and financial hardships, which in turn, lead
to excessive drinking, smoking and multiple partners. Our policy on
the living out allowance, particularly in terms of its impact on informal
settlements, is being reviewed. Social workers deployed at each
operation assist employees with complex issues and refer employees
into formalised networks for assistance.
The drug and alcohol awareness programme at our SA operations
conducted 658,953 alcohol breathalyser tests in 2019 and aims
to promote responsible alcohol consumption. In addition, 11,649
multi drug tests were conducted at the occupational health centres.
Employees found to be non-negative for prohibited substances are
referred into a formalised rehabilitation programme.
In recognition of the need to get employees active and lead healthier
lifestyles, Sibanye-Stillwater has launched a mobile application –
myWellness – for employees. The application will enable employees to
register for fitness and weight loss programmes and to track progress.
In addition, Sibanye-Stillwater will be able to run Group-wide challenges
as well as monitor patients in the high-performance centres.
Sibanye-Stillwater has a range of programmes for employees around
indebtedness and creating financial independence. At the SA
operations, our employee indebtedness programme, CARE for iMali,
designed to address some of these issues, has been well received.
Indebtedness and creating financial independence are particularly
pertinent at the SA gold operations, given the length of the strike that
took place in Q4 2018 and the beginning of Q1 2019. Marikana will be
integrated into our financial programme, effective 2020.
See the fact sheet: CARE for iMali at
www.sibanyestillwater.com
FUTURE FOCUS – HEALTH CARE
US PGM OPERATIONS
As part of the operations’ new employee health benefit plan, a
team of employees, consultants and health care professionals will
monitor and evaluate the performance of the two hospital systems
in south-central Montana, and will recommend actions to leaders
accordingly, based on the performance of the hospitals and the
new plan, and thus empower decisions that will have a positive
impact on the health of our employees and their families.
SA OPERATIONS
Our SA operations are working to ensure that, by 2021, all
employees have health insurance, that the scope of services is
equitable, that health care 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 health care outcomes.
Over the next five years, we will endeavour to extend universal
health care coverage to the families and dependants of
employees. We believe that we can achieve this by leveraging cost
efficiencies and effective health care within the existing system.
OCCUPATIONAL HYGIENE
HEAT-RELATED ILLNESS
Standards and procedures regarding thermal stress, including safe
declaration and withdrawal temperature limits (in terms of sections 22
and 23 of the MHSA) are emphasised to all SA gold and PGM employees.
Additional action undertaken included promoting 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 were enhanced.
In the US PGM 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 in one-
on-one or classroom-based settings.
The ensuing revitalised awareness, along with engineering controls,
meant that the number of exposures to temperatures above the action
level of 31 degrees Celsius wet bulb drastically reduced. Temperature
is now included in the Rules of Life, which instruct employees to
withdraw if the temperature is at or exceeds 31 degrees.
Health related posters are visible within the operations
184
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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 within design benchmarks. 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
RADIATION EXPOSURE
At our SA operations we comply with the radiation exposure
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. The SA operations comply
with the mandatory radiation exposure levels.
Radiation levels are monitored so that employees are not exposed to
this health risk.
In the US, under management of a radiation safety officer, 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.
NOISE-INDUCED HEARING LOSS
(see table on page 181 for the number of cases
Enhanced systems have led to reporting of more cases of noise-
induced hearing loss (NIHL) cases as we redouble our efforts to reduce
hearing loss
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 and Energy. The Minerals Council
South Africa supports this process by sourcing leading practices through
the Mining Industry Occupational Safety and Health (MOSH) initiatives.
Investigations are ongoing 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 for all employees. Moulded
hearing protection has been introduced at the SA gold operations for
the three most exposed groups of employees – rock drill operators,
winch drives and loader and loco drivers – who are exposed to noise
above 85dB(A). Discussions will be initiated with the unions, as part of
the Minerals Council MOSH leading practice adoption process, ahead
of the devices being implemented from early 2020. Rockdrill noise has
been reduced to below 107 dB(A).
The decrease in the NIHL rate per 1,000 employees at our SA PGM
operations in 2019 to 4.95 (2018: 7.14) demonstrates the relative
effectiveness of the hearing conservation programme put in place at
the Kroondal operation, which will be extended to the Rustenburg
operation during the first quarter in 2020. In this programme,
Water sprays in SA underground reduce dust exposure
employees who experience temporary hearing loss through noise
exposure are brought for surveillance. The overall absolute increase
in the number of NIHL cases is due to enhanced systems and the
incorporation of the Marikana operations as from June 2019.
Personal noise exposures are 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 and annual audiograms to detect NIHL. Zero
elevated exposures were recorded in 2019.
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 at Sibanye-Stillwater
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 are also involved
in the developing the MOSH Buy Quiet policy, which commits us to
procuring only equipment and machinery that complies with specific
noise-emission requirements. This policy will be implemented when
published by the Minerals Council.
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 and Energy.
The Minerals Council supports this process by continuously
monitoring leading practices through MOSH initiatives.
Sibanye-Stillwater Integrated Report 2019 185
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
Silica dust exposure at the SA gold operations regressed during 2019,
mainly a result of underground areas not being maintained and
becoming excessively dry as a result of the prolonged five months
industrial action ending in April 2019, after which build-up took
until August 2019 for some working places. Action has been taken
to improve awareness through poster campaigns on silicosis and to
develop and track leading indicators that will mitigate dust load in
the ambient air.
One of the new leading practices industry experts have identified is the
continuous real-time monitoring of airborne pollutants. Real-time dust
monitors were introduced in 2018 to locate sources of dust and as an
additional control measure and these have further reduced overall dust
load and silica exposure levels. Critical controls for dust, noise and diesel
particulate matter have been implemented.
To date, 43 of a planned 50 real time dust monitors have been installed
and commissioned. Some real time dust monitors have been installed
around shaft areas and have assisted in identifying activities that
generate dust, and control measures have been implemented. The data
from these real time dust monitors is collated automatically and daily
reports are generated and distributed from Qlikview.
At our SA PGM operations, dust exposure is relatively low (and
PGM ore silica content is negligibly low and virtually undetectable
in contrast to that of our SA gold operations) but reducing nuisance
dust on surface, particularly blown off tailings facilities and from haul
roads, is an ongoing focus area. Actions have been implemented to
mitigate dust-related issues, which include the development of a five-
year dust risk reduction plan, stockpile and haul road dust mitigation
and wind shear modelling on the tailings storage facilities.
At our US PGM operations, potential airborne hazards are monitored,
and pulmonary function of employees and contractors is tested
annually at all three properties. 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 2019.
The analytical laboratory in our US PGM 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.
SA gold operations: average dust load on filter (mg/m3)
)
3
m
/
g
m
(
0.50
0.45
0,40
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0
2009
MOD5 tip filter units
2012
Introduction of silver
membrane filters
2008
Footwall treatments
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
2
0
0
8
2
0
1
0
2
0
0
9
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
5
2
0
1
4
2
0
1
6
2
0
1
7
2
0
1
8
Q
1
2
0
1
9
Q
2
2
0
1
9
Q
3
2
0
1
9
Q
4
2
0
1
9
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.
“One of the new leading practices industry experts have identified is the
continuous real-time monitoring of air borne pollutants.”
186
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
OCCUPATIONAL LUNG DISEASE
In November 2014, Sibanye-Stillwater, Anglo American Limited, AngloGold Ashanti Limited, Gold Fields Limited, Harmony Gold Limited
and African Rainbow Minerals Limited 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.
As part of the working group, 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
In May 2016, a class-action suit, filed to obtain compensation for South African gold miners affected by silicosis or TB, was approved by
the High Court in Johannesburg. Six of the largest mining companies decided to work together with lawyers for the miners and come to
a settlement agreement out of court. Parties finally reached an agreement in May 2018. In an historic judgment, the court approved this
agreement on July 26 2019.
The Tshiamiso Trust has been tasked with locating, verifying, medically screening and paying out thousands of miners across southern
Africa. The working group has developed an industry database to facilitate the administration of queries and claims submitted to the
Tshiamiso Trust. The database has passed a rigorous audit and final updates have been completed.
The silicosis and TB class action settlement 90 day opt out period ended on 24 November 2019. The opt out submission underwent an
independent audit and three class members chose to opt out. Since the agreement is now unconditional, the Tshiamiso Trust was registered
on 28 November 2019 and the appointment of trustees is underway.
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 TB
Gold
PGM*
Noise-Induced Hearing Loss
Gold
PGM*
2019
131
71
60
68
29
39
491
221
270
355
166
189
2018
165
59
106
70
29
41
480
325
155
243
76
167
2017
261
193
68
50
37
13
570
422
148
193
93
100
*Includes seven months of Marikana operations since acquisition in June 2019
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
Total paid to beneficiaries (R million)
2019
2018
2017
12,670
9,854
14,732
7,388
10,575
198
212
8,727
250
Sibanye-Stillwater Integrated Report 2019 187
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HEALTH AND WELL-BEING AND OCCUPATIONAL HYGIENE CONTINUED
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 internal sampling is conducted at the US PGM
operations, with a requirement for diesel particulate matter to be
below 176 micrograms per cubic metre. When that is exceeded,
we conduct internal communication about the reading,
communicate with employees and put in place a series of
corrective actions, which includes respirator requirements. Once
they are complete, we resample and once we have a level below
the required level, we can return to normal operation.
In addition to internal monitoring, mine operations periodically
work with the Federal Department of Labor Mine Safety and
Health Administration (MSHA) Technical Support to evaluate
ventilation controls. In September 2019, we incurred three
violations (104 (d) (2) Orders from MSHA) relating to levels of
diesel particulate matter at Blitz. The process to have these
orders terminated was carried out in steps, with various
ventilation improvements being made and then testing being
conducted for DPM levels after each improvement, with limited
work activities taking place in the area. Production activities
were reintroduced first and after two passed tests, we requested
development activities be included which also passed twice.
Early in March 2020, diamond drill activities were added to this
area for testing which started on 11 March, resulting in full
production recommencing by the end of March 2020 depending
on MSHA testing and approvals.
At 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 0.16mg/m3 (measured
as total carbon). In 2019, a total of 1,081 DPM personal exposure
samples were taken at the SA gold operations – 131 samples
(12.12%) were above the Sibanye-Stillwater target. Of the 294
DPM personal exposure samples taken at the SA PGM operations
in 2019, 169 samples (57.5%) exceeded the Sibanye-Stillwater
internal target. Investigations into exposures above limit are
conducted regularly to establish the root cause and to prevent
recurrence. From 2020, all re-builds and new machines at our SA
PGM operations will be fitted with DPM filters that will reduce
DPM by approximately 30%.
188
Sibanye-Stillwater Integrated Report 2019
Mechanised mining at our US PGM operations
FUTURE FOCUS – OCCUPATIONAL HYGIENE
US PGM OPERATIONS
The US PGM operations will continue to monitor industrial
hygiene at all operations. Each mine has dedicated industrial
hygienist professionals and the Metallurgical Complex will
continue to utilise contractors on a quarterly basis. Ventilation
upgrades continue at both sites with the Stillwater operation
adding a second ventilation engineer. A continued emphasis
will be placed on reduced emissions provided by tier 4 and
5 engines. Battery operated equipment also continues to be
evaluated for feasibility.
SA OPERATIONS
The SA operations will continue to focus on reducing exposure
to noise. At the SA gold operations moulded hearing protection
will be introduced utilising the Minerals Council MOSH leading
practice adoption process.
After the regression in the silica dust exposure levels in the gold
operations post the prolonged strike last year, further work is
required to reduce dust exposure levels.
An additional focus for 2020 will be the reduction of exposure to
DPM, especially at the SA PGM operations.
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
D
E
L
I
V
E
R
I
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
A workshop at our SA PGM operations
Sibanye-Stillwater Integrated Report 2019 189
SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT
Membership
Better
lives
EMPLOYEES
Fair
market
access
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
HOW WE DID IN 2019
SUCCESSES
A joint development
agreement concluded to
optimise the impact of
Bokamoso Ba Rona
agri-industrial initiative
CHALLENGES
Stakeholder perception
index revealed historic
perception of non-
engagement
1.6bn
social and labour plans and
CSI* spend
Sustaining
income-generating projects
as businesses beyond our
support
74%
of procurement spend
is local
APPROACH
Our vision to create superior
value for all our stakeholders,
extends to all those directly or
indirectly impacted by our mining
activities.
We engage regularly with our stakeholders
to ensure that we can understand their
expectations of value and endeavour to work
with them to deliver accordingly for mutual
benefit. For more information about how we
conduct our stakeholder engagement, please
refer to
page 24.
Our resources enable value creation for all stakeholders
* Corporate social investment
190
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
There is a regulatory requirement for all SA mining companies to
contribute to local and labour-sending area community upliftment and
development in order to secure a social licence to operate. Sibanye-
Stillwater is committed to meeting and going beyond regulatory
compliance in line with our purpose of ensuring that our mining
improves lives. We share the value created by our mining operations
through partnership and collaboration, engaging transparently
with communities, while integrating sustainable development and
responsible social closure into our decision-making processes.
Our community engagement and socio-economic development
programmes go beyond our areas of operation. We contribute not
only to our host communities but to our primary labour-sending
areas. See community fact sheets at
com/sustainability/community/
https://www.sibanyestillwater.
Our South African socio-economic development programmes and
corporate social investment (CSI) initiatives are overseen by the
management-led Social Licence to Operate Committee (a sub-
committee of the Executive Committee), which also monitors the
impact of Sibanye-Stillwater’s socio-economic activities at the SA
operations. The Social, Ethics and Sustainability Committee of the
Board oversees and monitors the social impacts of Sibanye-Stillwater’s
business activities on communities in SA and in the US, motivated and
guided by our role as an ethical, responsible corporate citizen.
For further information on the governance of our activities in
relation to communities, refer to the report of the Social, Ethics and
Sustainability Committee on page 68 as well as to pages 74 and 89.
The US Community Giving Committee
EVALUATING OUR SOCIO-ECONOMIC IMPACT
With our renewed focus on strengthening, reinforcing and building the Sibanye-Stillwater reputation and brand, it is imperative to develop
a narrative that supports our vision globally, nationally, provincially and on a municipal level. Such a narrative must be supported by credible
independent data-driven analysis, providing a factual basis for the assertion that the Group lives and honours its purpose, vision and values.
A socio-economic impact evaluation of Sibanye-Stillwater’s operations in the Montana economy has already been conducted and
has been received positively by local stakeholders. Published in January 2019, the study, conducted by the Bureau of Business and
Economic Research at the University of Montana, concludes that the mining operations in south-central Montana make the local
economy significantly larger, more prosperous and more populous than it would have been without the presence of Sibanye-Stillwater.
The contributions to Montana were measured in terms of production, employment, spending and tax revenues. The study used 2017
data but the methodology and the relative consistency of the data from year to year renders the assumed impact and multiplier effect
accurate for years to come. For more information on the outcome of the study, please refer to the Mining supports Montana fact sheet
at
www.sibanyestillwater.com. Given the anticipated continued growth of the US operations, future economic contributions would
generally exceed the results of this study year on year.
Since South Africa constitutes a significant part of our footprint, we have complemented this US study with parallel South African studies
to generate an overall Group evaluation of our socio-economic impacts. For this reason, the Boston Consulting Group was contracted to
undertake a social and economic factors study for Sibanye-Stillwater.
The report provides the basis for the narrative around the company’s economic footprint. The narrative will be developed with the
following stakeholder considerations:
• Investors: their interest in long-term organisational sustainability increasingly extends beyond financial metrics
• Government: their focus lies with job creation, economic transformation and growth, which underpin the challenges in securing a
social licence to operate
• Employees: have a central role in the articulation of the values-based brand within the communities in which they live
• Local communities: need to understand the scale of the economic contribution the company makes to the country within its
operational footprint
Sibanye-Stillwater Integrated Report 2019 191
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
In line with our approach to creating and sharing value, in 2018 we
developed a stakeholder perception index 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 the same year. The index revealed historic perceptions of a
culture of non-engagement. Specifically, there was a perceived lack
of transparency in procurement processes, environmental issues, care
and maintenance, and socio-economic development programmes.
The same engagement 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 expressed frustration, believing that the mines do not
respond to their grievances, particularly in relation to CSI, procurement
and employment. To this end, the company put in place a mechanism
to ensure that a formal, proactive and responsive process is in place to
deal with stakeholder grievances
(refer to page 195).
The findings support the feedback the company regularly receives
from its engagement partners and therefore engagement and
communication have been strengthened to ensure that stakeholders
are informed, and, where applicable, engaged and consulted on
issues of mutual interest. With the integration of the Marikana
operations, the company plans to conduct a Group-wide stakeholder
perception study in South Africa aimed at creating a baseline and an
opportunity to rebase stakeholder relationships
Our SA projects also focus on early childhood development
PERFORMANCE
SA OPERATIONS
Our operating context
Our relationships with our communities in South Africa continue
to be dynamic and challenging against a background of current
socio-economic challenges, legacy issues and unfulfilled promises
(including those originating prior to acquisition by the company) and
misaligned expectations arising from lack of understanding of the role
of the mine relative to government. This scenario results in increasing
discontent and impatience with the pace of delivery of social
programmes. The social context is played out against a backdrop of
poor service delivery by local government, poverty and a high rate of
unemployment, particularly among the youth.
T
N
E
M
T
F
I
L
P
U
Y
T
I
N
U
M
M
O
C
D
N
A
L
A
I
C
O
S
O
T
H
C
A
O
R
P
P
A
R
U
O
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
192
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Community challenges and our responses: 2018 to 2019
Challenge
Perceived lack of
engagement – There is
a belief that mines do not
respond to community
grievances, particularly in
relation to CSI, procurement
and employment.
Response
We are:
• creating consistent and open channels of communication
In 2019, we developed an issues management process and a complaints/grievance mechanism aimed at
ensuring community and stakeholder concerns are resolved speedily. A complaints procedure
(see page 195) was put in place so that communities and other stakeholders can more easily contact
Sibanye-Stillwater and report their concerns. A hotline was set up to facilitate contact with Sibanye-
Stillwater.
As part of the community complaints procedure, every issue or complaint is captured in a register,
resolved and feedback provided to stakeholders within a stipulated turnaround time. In this way,
issues are resolved before they develop into disputes.
• assisting communities to organise themselves so that engagement is constructive
The company has increased its efforts to set up multistakeholder community engagement forums (CEFs)
to ensure regular and consistent engagement.
It is important for engagement to be broad based, representing the interests of all stakeholders.
Sibanye-Stillwater has collaborated with local stakeholders in ensuring active and representative
CEFs to encourage constructive dialogue and to keep abreast of the impacts of the business
on communities. In the Rand West area, three CEF meetings were held to establish the forum’s
structure, terms of reference and framework. In the Free State, seven CEF meetings were held
in 2019. In Rustenburg, five meetings were held and in Marikana two meetings were held by
the newly-established CEF. In the Merafong area, the CEF is in the process of being established,
however seven meetings were held with different community forums in 2019.
Regular feedback is provided on progress against targets in SLPs.
In 2020, a capacity building programme will be rolled out to ensure that communities are adequately
empowered to engage on issues affecting them.
• supporting CSI and environmental programmes identified by local communities
The company has a set approach to CSI
(see page 198) while environmental awareness programmes
are facilitated by independent organisations in local communities. This has been done in the West Rand
and will be rolled out in other regions.
• focusing on local employment
At total of 98% of employees at the SA PGM operations and 81% at our SA gold operations were
recruited from local communities. (99% and 89% respectively in 2018)
We have increased local procurement by increasing our expenditure from R10.6 billion in 2018 to
R14.5 billion in 2019 at the SA operations
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.
In 2019, community leaders and organised labour were taken to visit community projects that are part of
the SLPs both around operations and in labour-sending areas.
Sibanye-Stillwater Integrated Report 2019 193
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
Community challenges and our responses: 2018 to 2019 continued
Challenge
Response
Employment – All job
applicants must 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 from
acquired assets – due to
unresolved historic issues with
the previous owners of our
current assets
At the Rustenburg operations, in 2020 we will be inviting community leaders to visit our occupational health
centre to take them through our engagement processes so that they can understand that there are good
health reasons why some job applicants fail.
Sibanye-Stillwater is engaging with communities to seek resolutions to legacy issues where applicable.
Engagements continue with relevant stakeholders to find mutually beneficial solutions to long standing
issues while mapping a new path on the basis of the new relationships.
We are closing historical gaps in procurement and socio-economic development (see Procurement and
enterprise development on
projects at
page 197, and the summary of our 2019 SLP
www.sibanyestillwater.com)
page 199, SLP status on
Lack of local procurement
opportunities – This is
a major concern across
communities in South Africa.
As part of our enterprise and supplier development strategy, the following were actioned in 2019:
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 engagement sessions to provide information to SMMEs who will also benefit directly
from the services of the enterprise and supplier development (EDC) centres, which were established in all our
operating areas in 2019.
Life after mining and
avoiding the creation of
ghost towns
Our social closure framework was conceptualised in 2018. This framework and its accompanying plans go
beyond mining and call for social development planning that is sustainable and inclusive to prevent the
creation of ghost towns at the end of the life of our mines.
In developing these plans, we collaborate and strategise with municipalities, district and local, to identify
economic activities that will endure post-mining. The plans, aligned with regional IDPs, will be driven and
owned by the municipalities.
See Social and labour plans on
see box on Bokamoso Ba Rona Agricultural-Industrial Initiative.
pages 195 and 197 for more details on our life after mining projects and
Supporting projects which will sustain life after mining
194
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE COMMUNITY COMPLAINTS PROCEDURE
1
Complaint
received
Are both parties
satisfied with the
response?
2
6
Internal
review
Mediator reviews/
investigates and
gives resolution
3
5
Registration of
complaint on the database
within 2 working days of receipt
Acknowledgement of receipt
within 4 working days of receipt
4
Feedback given to
complainant:
within 14 working days of
receipt of complaint and every
five working days thereafter
Either party refers the
complainant to a third
party for mediation
NO
Is complainant
satisfied with
resolution?
NO
YES
Complaint closed
Either party refers the matter
for litigation
YES
Complaint closed
The Mining Charter
Following the release of Mining Charter 3 in 2018 and related
implementation guidelines, we held internal capacity building workshops
for management and organised labour to align understanding of the
regulatory requirements and their reporting. This was also intended to
ensure that all mining right holders across our SA operations understand
the terms and conditions and obligations pertaining to our mining
rights. In 2020, we will be rolling out a capacity building programme on
regulatory compliance for our Community Engagement Forums; which
comprise community leaders and government representatives.
By September 2019, we had submitted our mandatory five-year
transitional plans for Employment Equity and Procurement, Supplier
and Enterprise Development to government, providing a baseline
of where we are now in terms of our Mining Charter 3 targets, and
showing how we will meet our targets by 2024. The first annual report
on Mining Charter 3 was submitted to the Department of Mineral
Resources and Energy (DMRE) by 31 March 2020. Every mining right
also requires that a social baseline analysis be conducted to inform
socio-economic and community development as required in the SLP.
The Mining Charter continues to set socio-economic development (SED)
spend, which includes SLP local economic development (LED) projects,
at 1% of net profit after tax, but this now comes with an added
stipulation that only 8% may be on spent on project management.
Although the SA operations recorded a loss for the year of R4.3 billion,
we continued with SED expenditure of R152 million in 2019 and R1.58
billion SLP expenditure for the year.
Although our socio-economic development focus has moved beyond
the scope of our SLPs, regulatory compliance is a critical element
of our socio-economic impact. For a summary of our 2019 SLP LED
projects and their impact, refer to
www.sibanyestillwater.com
Social and labour plans (SLPs)
It is important to highlight that there have been challenges in the
implementation of SLPs for a myriad of reasons, which include project
sustainability, lack of co-ordination by different role players to ensure
project impact and sometimes lack of interest in taking up training
opportunities. The Group has, through its acquisitions, inherited
SLPs with backlogs but has made steady progress in closing them
throughout the years.
In order to enhance impact and ensure sustainability, our SLP teams
have been trained on social return on investment (SROI) methodology
so that they are able to ensure that all future SLP projects will be
engineered in such a way that their SROI can be measured. This
will allow reporting not just on the business performance and
beneficiaries of our projects and expenditure, but also project impacts
and outcomes.
We recognise that viewing our SLPs as the driver for community
development is too narrow an approach: our driver is enduring
social impact. Dovetailing with this approach, is our social closure
framework and its accompanying socio-economic programme
plans. To catalyse sustainable development, we will be focusing
on supporting capacity building initiatives for local municipalities,
NPOs and NGOs, as well as regional planning such as our township
development in Marikana. We are also engaging with our
neighbouring miners to make it possible for us to have a bigger
impact in our communities.
Sibanye-Stillwater Integrated Report 2019 195
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
An example of our life after mining projects is the Bokamoso Ba
Rona agricultural-industrial initiative. We are engaging with the
stakeholders in the West Rand on an industrial project that will see
the creation of a manufacturing hub at the proposed industrial park.
This industrial park, if realised, has the potential to create further jobs,
ameliorating the impact of the scaling down of mining operations
across the district.
BOKAMOSO BA RONA AGRICULTURAL-INDUSTRIAL
INITIATIVE
The Bokamoso Ba Rona initiative is a 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,
close to Sibanye-Stillwater’s mining operations. 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 towards the
development of the hub.
Significant progress has been made in advancing the Bokamoso
Ba Rona agri-industrial programme. The corporate vehicle has
been established as a non-profit company through which the
founding partners (Sibanye-Stillwater, Far West Rand Dolomitic
Water Association, Gauteng Infrastructure Financing Agency
and West Rand Development Agency) will exert governance and
oversight as well as commit to their respective responsibilities to
support programme implementation.
A joint development agreement has been concluded with the
programme management consortium comprising Talmar Impact
Investments, Aurecon and Cliffe Dekker Hofmeyr that will
frame the scope of work that will be executed to develop the
programme design for commercial sustainability and optimised
delivery of socio-economic benefit to the inhabitants of the
district.
While certain quick-win opportunities are available to kick
start economic activity, it is intended to develop a strategic
programme design based on solid feasibility studies and business
analysis to create the investable opportunities that will attract
substantial investment financing into a venture fund.
This is a unique collaboration with clearly defined and
appropriate roles for public and private sector organisations to
build a sustainable district economy.
For more information on this programme, visit
www.sibanyestillwater.com
196
Sibanye-Stillwater Integrated Report 2019
The local economic development projects in our SLPs are identified
through the Integrated Development Plan (IDPs) of local government.
Selected projects are in the areas of social infrastructure, health,
economic development and capacity building.
Our social infrastructure projects included roads, walkways and
bridges, high mast lights and water reticulation projects, recognising
that our own employees are adversely affected by the absence of
basic services in areas where they reside. Through these projects, we
are creating sustainable social infrastructure that improves the quality
of lives of our employees and local communities, unlocks economic
opportunities and will remain functional long after mining.
In the area of health, we are contributing to the construction of clinics
in the North West and have donated mobile units to government –
two basic mobile clinics and two mobile maternity and obstetric clinics
were donated to the Department of Health in 2019.
In our approach to local economic development projects, we are
at pains to structure our income generating projects as business
enterprises that are sustainable because of their developmental
nature. It has become evident that to make them sustainable we need
to focus on capacity building that will ensure that the beneficiaries
continue to run these projects beyond government and our support.
To that extent, we have focused on helping them secure offtake
agreements, which are essential to their development and are
brokered as a first step in the establishment of ventures. These are
mainly in agriculture where we support piggeries, vegetable farming
and wool production.
We are also contributing to socio-economic development programmes
in the Eastern Cape, which is our primary labour-sending area. We
have completed the construction and equipping of four of eight
shearing sheds to enable subsistence sheep farmers to participate in
the commercial wool protection value chain. The facility already has
offtake agreements in place with the Wool Shearing Association.
In terms of education, we are involved in infrastructure support
for schools and have partnered with Gold Fields Limited, South
Deep Education Trust, WestCol and Westonaria Community Trust
to construct the Westcol Technical and Vocational Education and
Training College with partners to provide skills training relevant to
alternative economies in the West Rand district.
Portable skills training (such as welding, plumbing, bricklaying, sewing
and carpentry) by the Sibanye-Stillwater Academy is also offered in
line with SLP targets.
Internal governance of SLPs is undertaken through forums designed to
monitor and evaluate implementation and Mining Charter obligations.
The Social Licence to Operate Committee provides guidance on the
overall approach and evaluates progress against commitments. At
operational level, meetings are convened quarterly with management
and organised labour. In 2019, the SA gold operations held 10 (seven
in Merafong and three in Beatrix) SLP forum meetings. SLP forum
structures were set up at the Rustenburg and Kroondal PGM operations
and five forum meetings were held in 2019. A SLP forum has not yet
been established for the Marikana operations.
Sibanye-Stillwater has extended the Care for iMali financial
(see fact sheet at
wellness programme to communities
www.sibanyestillwater.com).
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE In summary, it is our belief that understanding the social needs of the
environments in which we operate, will give us sufficient credibility
to enter into a successful social compact discussion with our local
communities. It is, however, vital that we deliver on our promises to
avoid reputational damage. Delays emanating from our procurement
processes are being addressed, in part by the introduction of Coupa
(see page 199 for details).
SLP status
• Beatrix: The SLP for 2017-2021 has been approved and
implementation is underway. A Section 93 notice of backlog
at Beatrix was received and management is engaging with the
authorities in this regard, while addressing the backlogs.
• Burnstone: The SLP for 2017-2021 has been submitted to
the DMRE and we await approval. A section 93 directive was
issued for non-delivery of SLP commitments and the company
responded accordingly.
• Cooke 123: Under care and maintenance, implementation of
LED projects backlog will be completed in Q1 2020.
• Cooke 4: Under care and maintenance, implementation of
LED projects backlog will be completed in Q1 2020.
• Driefontein: Implementation of SLP for 2017-2021 is in
progress. Backlog from previous SLP (2012-2016) in labour-
sending area LED project is being addressed and will be
delivered during 2020.
• Kloof: Backlog of host LED projects has been completed.
2017-2021 SLP was approved during the last quarter of 2019
and implementation has commenced. Backlog from previous
SLP (2012-2016) in labour-sending area LED project is being
addressed and will be delivered during 2020.
• Rustenburg operations: The SLP for 2016-2020 is being
implemented.
• 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. All the other areas of the SLP are
being implemented by Sibanye-Stillwater.
• Marikana: SLPs at the various operations are in
implementation state. The company is continuing with the
implementation of the backlog SLPs and has communicated
its commitments in line with the Competition Commission’s
approvals. The Generation III is expected to be signed off in
early 2020 due to delays in stakeholder consultations and
implementation is expected to commence in 2020.
Our portable skills training improve lives
We support community safety
Sibanye-Stillwater Integrated Report 2019 197
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
SA operations: socio-economic development (SED) expenditure (R million)
2019
Total
62.2
Gold
PGMs*
7.7
54.5
Total
18
PGMs
15.4
Total
24
22017
Gold
13
PGMs
11
17.2
184
178
0
0
0
532
340
193
586
425
161
3
3
0
10
3
3
0
8
0
0
0
2
1,158
791.5
366.5
Local economic development projects 3
Human resource development
Communities 3
Employees 2,3
Employee housing and nutrition 1,2,3
Health
Education
Arts and culture support
Sport, conservation and environment
77.98
41.5
36.5
–
–
8.5
2.89
0.10
0
–
–
7.5
1.3
0
0
–
–
0.937
1.5
0.10
0
0
2018
Gold
2.6
51.4
305
594
10
13.7
68.6
489.5
772
10
13.7
Donations, community development and
charitable gifts
0.595
0.595
Total SED
152
59
93
1,374
0.345
0.345
2.7
2.3
979
0.4
395
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, which are excluded for the updated SED definition
3 Line item also included in the social and labour plan (SLP) definition
* Includes Marikana operations for seven months from June 2019 to December 2019
SA operations: social and labour plan (SLP) spend 2019 (R million)
Local economic development projects
Human resource development – communities
Human resource development – employees1
Housing and living conditions expenditure1
Management of downscaling and retrenchments (provision of alternative skills training) 1
Total SA SLP spend
* Includes Marikana operations for seven months from June 2019 – December 2019
1 Excluded from the updated definition from the SED expenditure on the previous table
Total
62.2
77.98
552.2
883.7
8.5
Gold
7.7
41.5
274.4
613.1
8.5
PGM*
54.4
36.5
277.8
270.6
0
1 ,584
945.2
639.5
SA operations: enterprise development (R million)
2019
2018
2017
Total Gold
PGMs
Total Gold
PGMs
Total Gold
PGMs
34
17
17
11
7
4
1
0.5
0.5
We have set up a Sibanye-Stillwater Group Development Trust 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 this will be fully operational in 2020.
Corporate social investment
The total enterprise development expenditure for 2019 for the SA
operations was R5.2 million, with a balance of R23.8 million available
in the fund at the end of 31 December 2019
procurement section on page 199).
(please refer to the
Management of CSI activities at our SA operations is being
streamlined to ensure that it is focused and optimises benefits for
beneficiaries. To ensure impact, our CSI interventions are funded over
a fixed period, depending on the specific focus area.
Community trusts
With the acquisition of the Rustenburg operations in 2016, Sibanye-
Stillwater concluded a 26% broad-based BEE transaction through a
subsidiary. In terms of this transaction, 26% of the Rustenburg entity
is held jointly by the Rustenburg Mines Community Development
Trusts (24.8%); the Rustenburg Mine Employees Trust (30.4%);
Bakgatla-ba-Kgafela Investment Holdings (24.8%); and Siyanda
Resources (20%).
A team has been established to review the governance arrangements
in the Trusts and all outstanding issues will be highlighted and
addressed in 2020.
In the West Wits region, Rand West and Merafong, we are supporting
three homes for elderly and disabled people with an investment of R1.2
million in monthly food parcels over two and a half years, while providing
the same people with skills to cultivate self-sustainable food gardens for
their own consumption and to generate an income. In Sonop, in North
West, we assisted with the refurbishment of an old age home.
Our focus in Rustenburg and Marikana is on supporting early childhood
development (ECD) centres in partnership with other role players. This
included infrastructure refurbishments, the provision of learning and
support materials as well as capacity building of ECD practitioners.
We have also provided food security support for non-profit
organisations and healthcare in Marikana and in the Eastern Cape.
198
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
In the Free State in 2019, we focused on a food security programme
and provided food parcels at homes for the elderly, while engaging
with stakeholders to determine future focus areas.
SA operations: corporate social investment in 2019 (Rm)1
2019
2018
2017
Total
12.1
26.5
15.8
Gold
9.5
26.5
13.8
PGMs
2.54
0.04
1.98
1 Corporate social investment is included in the socio-economic
development table on the previous page
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 guidelines.
No human rights violations were reported during 2019. The
SA gold operations’ five-month long industrial action resulted
in 10 fatalities which included community members. For more
page 153 in
information about the strike, please refer to
Empowering our workforce. The Human Rights Commission
investigated the strike and its impact and reported that the
Group had not violated any human rights during the period.
Challenges related to illegal mining at our SA gold operations
continue. The Group has invested a significant amount in
bolstering internal security and other crime prevention measures.
Group strategy is to continue to influence the sector and public
policy, while clearing out illegal mining activities.
For the impact of illegal mining on communities,
sheet: Combatting illegal mining at the SA operations.
see the fact
PROCUREMENT AND ENTERPRISE DEVELOPMENT
Participation by local community businesses in Sibanye-Stillwater is one
way of contributing to the economic development of communities
around our mining operations. Issues relating to local procurement and
enterprise development were a major cause of strained relationships
between our business and local communities in 2019.
Procuring services from local suppliers can be a challenge. Some of the
issues are a lack of relevant mining skills, pricing and contract deliveries.
Despite the challenges, however, we achieved a local spend of 74%
across all our operations in 2019 (2018: 77%).
In response to the challenges of local procurement, our enterprise and
supplier development strategy has been developed to focus on:
• strengthening engagement with local stakeholders in our supply
chain, including business forums, SMMEs and local businesses
• transparently sharing information about what we buy, opportunities
available and our processes through workshops, open days and the
implementation of Coupa (see below for details)
• funding assistance
• enterprise and supplier development programmes, including
capacity-building SMME workshops
• proactively identifying SMMEs and potential joint ventures
• unlocking opportunities for local suppliers through ring-fencing
commodities and unbundling (see below for details)
We have employed Phakamani Capital, an enterprise development
service provider to assist us in coaching and developing the skills
required to support local suppliers and drive sustainability. Through
Phakamani, 399 individuals were trained in 2019.
Phakamani also runs the Sibanye-Stillwater R11.5 million loan facility
to disburse to suppliers to help them meet their commitments to
us as a business. In 2019, 130 loans were approved to the value of
R24.4 million for the benefit of 45 SMMEs, including 36 youth and
63 female entrepreneurs, and a total of 1,309 jobs were created and
sustained as a result.
Phakamani has a presence in our enterprise development centres
which we established across our operations in 2019 and which are
based at Theunissen, Welkom, Westonaria, Carletonville (a shared
centre with AngloGold Ashanti) and Rustenburg. The centres are a
first port of call for our communities with us as a business. Business
training takes place from the centres and computers and internet
access are provided for registration as suppliers. Black Umbrella, the
small business incubation centre, is currently located at Mooinooi for
our Marikana operation.
We are in the process of implementing the Coupa system, a spend
management, cloud-based application, which will fundamentally
transform the way we on-board suppliers, source, contract, procure
and invoice goods and services. Coupa went live across the various
operations beginning November 2019, with a full roll out planned by
January 2021.
As a result of Coupa, processes across Sibanye-Stillwater will be
streamlined and standardised to fit industry best practices. The entire
procure-to-pay process will be simplified, made visible and transparent
across the sourcing, contracting and procurement value chain for
employees as well as for our suppliers. Coupa will also support and
provide flexibility for our smaller, local suppliers as it is not necessary
to be a registered vendor on the new system.
Coupa awareness sessions and training took place for all employees
in 2019. Awareness sessions were completed for suppliers in the
form of an internal roadshow, while additional, hands-on support
was made available.
With each supplier engagement we emphasise the importance of
transformation in meeting Charter requirements and retaining our
licence to operate. Transformation also enables us to work with our
communities and live up to our vision of improving lives. During
our engagements, we investigate ways in which our suppliers can
help us meet our Charter obligations, including the unbundling
of opportunities on contracts with large suppliers. An intensified
programme to unlock opportunities for local suppliers is being rolled
out with focus on some 10 ring-fenced commodities.
Mining Charter 3 stipulates that a minimum of 70% of total mining
goods procurement spend must be on South African manufactured
goods that are SABS-approved. Of that 70%, 5% is to be spent
on goods produced by women- or youth-owned and controlled
companies. Sibanye-Stillwater worked with our suppliers to obtain the
necessary information, which was provided by our suppliers in a signed
affidavit and the answers captured in a database. Our status in this
regard will be able to be assessed by the end of the first quarter 2020.
Sibanye-Stillwater Integrated Report 2019 199
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SOCIAL UPLIFTMENT AND COMMUNITY DEVELOPMENT CONTINUED
SA operations: discretionary BEE procurement 1 (%)
Gold
Beatrix
Cooke 1, 2 and 3
Cooke 4
Driefontein
Kloof
PGM
Kroondal
Rustenburg
Marikana
Total
Mining goods target
Services target
Target 70%
Target 80%
81
79
81
84
84
91
84
68
81
51
38
64
67
75
86
78
74
73
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 (2019)
Black-owned 1 (historically disadvantaged South African) businesses
R million
% of total spend
Male-owned
Women-owned
Total
1 Ownership greater than 51%
SA local discretionary and BEE procurement expenditure
2019
2018
US OPERATIONS
Our operating context
The US PGM operations’ community challenges differ from those
of South Africa. In the US, Sibanye-Stillwater’s operations are
situated in two rural counties in Montana. Through the Company’s
Good Neighbor Agreement, we have engaged closely with local
environmental and community groups since 2000 to collaboratively
address environmental and community issues and concerns.
R5,397
R2,744
R8,141
31
15
41
Total discretionary
procurement (Rm)
R19,622
R13,755
Local BEE
procurement
spend (Rm)
R14,529
R10,624
% of BEE
procurement
74
77
In some cases, the development of a new hard rock mine may result
in little or no increased cost for local government units. In other
cases, the increase in service and facility needs and costs may be
substantial. In either situation, the construction and operation of
the mine will bring increased employment to the impact area and,
eventually, increased tax base and tax revenue to the affected local
government. The company’s compliance with the HRMIA has meant
that infrastructure and public school system burdens were addressed.
In addition to its collaborative community relationships, the regulatory
environment in Montana also limits negative impacts of the
Company’s operations on local communities. The Montana legislature
enacted Montana’s unique Hard Rock Mining Impact Act (HRMIA)
in 1981. The purpose of the HRMIA is to ensure that large-scale
mineral development will not burden the local taxpayer, as large-scale
mineral development can bring with it an influx of demands on local
government entities. There is also often a lag time between when the
demands on local government units occur and the tax revenue stream
from production of a mining property arrives. The HRMIA ensures that
the needs of a host community are addressed as they occur.
In addition to contributions to state and local tax bases through the
HRMIA and other state and federal taxes, the US region contributes
to its communities through our Community Giving Team. Our
Community Giving Policy prioritises initiatives that support rural
emergency and health care services, education (especially science,
technology, engineering and mathematics), local community
improvement activities and environmental stewardship. A seven-
member Community Giving Team was created in 2018 to implement
our policy, an important aim of which is to support communities
directly adjacent to our mines and processing facilities. The Team
meets monthly to evaluate requests.
200
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE In 2019, the Community Giving Team supported organisations with
a combined donation of US$398,567. The company hosted a golf
tournament in August that raised over US$35,000 for the St. Vincent
Health Care HELP Flight. The HELP (Helicopter Emergency Lifesaving
Program) Flight air ambulance programme provides air transportation
for seriously ill or injured patients. This air ambulance service is critical
for the rural communities where our employees live and work.
In addition, the Community Giving Team continued to support the
Yellowstone Bighorn Research Association, a local field research
site which since 1936 has played a vital role in the education
of over 7,000 university students, providing a launchpad for
successful careers in government, academia, and the resource and
environmental industries. The Team also supported a local working
group dedicated to creating collaboration over public land access
issues; the Special K Ranch, which is a local home for special needs
adults in an agricultural setting; and the Elk River Writing Project,
a Montana State University Billings-based organisation focused on
teaching professional development opportunities with a focus on
best literacy practices across all content areas, Indian Education for
All, and place-based education.
The Community Giving Team continues to focus on the Sibanye-
Stillwater’s commitment to environmental stewardship through
contributions to entities like the Sand County Foundation, which
encourages private landowners to engage in conservation activities
that foster enduring environmental improvements. In 2019, the Team
sponsored the Sand County Foundation’s inaugural presentation
of the Leopold Award in Montana. The award was presented to
a ranching family in central Montana who have restored prairies
with deep-rooted, diverse vegetation to increase the soil’s ability to
infiltrate and hold water and implemented high-intensity, rotational
grazing practices to feed their beef cattle.
The Community Giving Team also partnered with Wheaton Precious
Metals, with whom the US region has a commercial financing
relationship, to provide funds to a local high school environmental
club that is installing a solar array at its premises.
GOOD NEIGHBOR AGREEMENT
In 2000, the then Stillwater Mining Company signed the Good
Neighbor Agreement, 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 Good Neighbor
Agreement 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 Good Neighbor
Agreement as a vehicle for dispute resolution and positive
stakeholder engagement.
For further information,
together: the Good Neighbor Agreement.
see the fact sheet, Working
US operations: social activities and related
expenditure (US$)
2019
2018
Community projects (39%)
154,945
162,600
Education (30%)
118,380
94,130
Youth activities (14%)
58,142
50,900
May-
December
2017
60,050
37,760
53,125
Emergency services (10%)
39,700
44,700
28,750
Cultural activities (9%)
27,400
35,500
15,100
Total
398,567
387,830
194,785
US local procurement expenditure
Total
procurement
(US$m)
Local
procurement
spend (US$m)
% of local
procurement
334.8
290.5
103.3
92.1
31
32
2019
2018
FUTURE FOCUS
SA OPERATIONS
We will focus on regional collaboration with key partners to
ensure that the programmes we support will be sustainable
during and after life of mine. The programmes will focus on
economic diversification to catalyse job creation and developing
skills to support these alternative economic activities in areas
around our operations.
US OPERATIONS
In 2020, our US operations will continue to focus on meaningful
contributions that will enhance the well-being of local
communities, assist local first-responders, provide education
opportunities to local students and promote environmental
stewardship. Our Community Giving Team will also expand its
role as company ambassador by adding an employee Volunteer
of the Year Award and a community service project.
Sibanye-Stillwater Integrated Report 2019 201
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
CHALLENGES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
8%
less water used for
the Group
22%
less water purchased at our
SA gold operations
Tailings monitoring equipment
has been installed at the US
PGM operations
FIVE
level 3 incidents. Although
this has not increased year-on-
year, we continue to work to
prevent incidents
14%
increase in CO2e intensity due
to inclusion of the newly-
acquired Marikana operations
APPROACH
Our environmental management
team focuses on the execution
of environmental initiatives
aligned with Sibanye-Stillwater’s
strategic objectives, vision
and purpose. Internationally
recognised principles, including ISO
14001:2015, the ICMM, the World
Gold Council’s RGMP and the United
Nations Sustainable Development
Goals guide the team.
These principles are embedded in our
systems, business risk and management plans.
Compliance with local and international
regulations, codes and duty of care supported
by the principles, underscore our approach to
environmental management.
202
Sibanye-Stillwater Integrated Report 2019
Our SA gold operations manage extensive tracts of land
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
We have integrated and aligned environmental functions across our SA operations in terms of our environmental social and governance
(ESG) strategy (illustrated below). In-depth alignment of the US PGM operations was concluded in 2019, while alignment of the
Marikana operation from June 2019 onwards has progressed well to date. The ESG strategy informs the environmental operating
model, strategic goals and objectives, and the associated performance measures for 2020 and beyond.
ENVIRONMENTAL
SOCIAL
ESG STRATEGIC THEMES
Promoting natural resources
and improving life –
sustainable use through
increased environmental
consciousness and continual
improvement, minimising
environmental impacts with
a measured transition to a
low carbon future
Communities
Stakeholder engagement
Safety and health
Unlocking the potential
of communities affected
by our operations through
economic empowerment,
institutional development
and creating local benefit
that inspires sustainable
living
Our stakeholders will
be heard through
transparent engagements
and incorporating the
knowledge gained into our
business
Aiming to improve the
holistic wellbeing of our
workforce through the
pursuit of risk based
monitoring of safety
and health factors and
improvement in safety and
health performance
GOVERNANCE
Respecting human rights of
stakeholders and doing our
business with integrity and
from an ethical foundation
by adherence to good
governance principles and
legal compliance
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. The
Marikana operation’s mining, processing operations and
shared business services are already certified according to ISO
14001:2015 environmental management standard and have
retained certification during surveillance and recertification audits
conducted during 2019. Certification for the SA PGM operations
is expected by December 2020, and by December 2021 for the
SA gold operations. An ISO 14001 gap analysis for both the SA
gold and PGM businesses was conducted in 2019, and action
plans developed and progressed. The US PGM operations also
conducted an ISO 14001 gap analysis, and are implementing a
plan that will create an ISO 14001:2015 compliant environmental
management system in 2021.
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, Ethics and Sustainability
Committee and the Board.
Refer to the Social, Ethics and
Sustainability Committee’s report on page 68 and regulatory
compliance in
Corporate governance from page 89.
The SA gold operations are currently not a signatory of the
International Cyanide Management Code (ICMI) for the
Manufacture, Transport, and Use of Cyanide in the Production
of Gold third party audits. Cyanide is monitored in all ground
and surface water monitoring programmes. Gap audits were
conducted on all sites by an independent accredited ICMI
auditor to ascertain the baseline compliance to the ICMI code
requirements. These audits were completed to support the
“Sibanye-Stillwater recognises how
vital it is to proactively manage our
carbon footprint. We are committed
to contributing to a global solution
by deploying responsible strategies
and actions in the areas within
which we operate.”
intent of Sibanye-Stillwater becoming signatories to the ICMI
Code. The audits entail both physical site inspections as well as a
comprehensive review of the systems that the ICMI requires to be
in place.
From the gap audit, areas of full compliance were identified.
These require no additional information or systems to obtain
accreditation. Only 4% of the compliance gaps were classed
as significant with most of these issues identified as common
throughout all plants. These included the transport and supply
contract that required finalisation with the supplier and the
probabilistic water balance per operation that will be completed
by mid-June 2020. There are however items that will require
capital expenditure to secure compliance such as the secondary
containment requirements at both Cooke and Ezulwini plants.
The plan is to close the significant gaps at all plants within
the next 12 months. The gold plants will therefore be ready
for certification audits within the next 12-15 months. These
operations were signatories before Sibanye Gold was spun out
of Gold Fields in 2013. The Cooke operation has never been
accredited and it is anticipated that the process will take about
two years.
Sibanye-Stillwater Integrated Report 2019 203
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
PILLARS OF THE ENVIRONMENTAL COMPONENT OF THE ESG STRATEGY
Environmental
vision
Promoting natural resources and
improving life – sustainable use through
increased environmental consciousness
and continual improvement, minimising
environmental impacts and a measured
transition to a low carbon future.
ENVIRONMENTAL PRIORITIES
Recycling close to our SA gold operations
Maintain environmental
licence to operate
Effect continuous
improvement
Responsible use of
environmental resources
• Continuous improvement of our
internal governance practices
• Effective use of technology and
innovation in run-of-mine work
and in new projects
• Drive responsible socio-economic
closure solutions for a post
mining economy
• Drive leading value creating cost
• Reduce the degradation of
effective solutions
natural habitats, halt the loss of
biodiversity and protect species
on land and water
• Sustainable use and proactive
management of environmental
resources including energy
• Reduced water risks, including
Drive environmental
consciousness through
awareness, stewardship
and communication on
environmental issues
educate policy makers on the
value of responsible economic
development
• Manage expectations through
engagement with key internal and
external stakeholders
• Awareness, stewardship and
communication on environmental
issues
• Reduce emissions and strengthen
• Influence policymaking and
resilience to climate change
cost, and enhance water security
and its quality
• Protect and enhance our
environmental reputation
• Deliver sound environmental
• Research and development and
management of chemicals and
all wastes – minimise waste to
landfill
sharing knowledge
• Respect legally designated
protected areas and not mine or
explore in World Heritage Sites
• Obtain and maintain
environmental authorisations for
relevant activities
• Understand and implement local
environmental legal requirements
• Align and adhere to appropriate
local and internationally
recognised standards, guidelines
and principles
• Align management of tailings
storage facilities to global tailings
standards
• ISO 14001 environmental
management standard
certification
• Manage and mitigate
environmental risks
• Foster collaborative, symbiotic
relationships with community and
environmental groups
204
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE US AND SA OPERATIONS: SYSTEMS SUPPORTING
ENVIRONMENTAL MANAGEMENT
We use the following technologies for proactive
environmental management enabling proactive and informed
decision making:
• Pivot-Occurrence: system to capture and manage
environmental incidents and complaints
• An electronic legal aspect register: will be developed and
integrated into systems at all SA gold and PGM operations
• Syncromine: audit system for the management of
environmental non-conformances – the environmental module
has been customised to schedule audits at planned workplaces
based on standard environmental checklists
• ARC GIS: platform where environmental water and air quality
data is stored in the system and provides tools to determine
compliance. A process is underway to record waste data across
SA gold and SA PGM operations
• Qlikview: a data analysis tool for non-conformances, water
quality, water volumes and air quality compliance to enable
trend analysis and decision-making
During 2020 the above systems will also be implemented at
Marikana.
• Zednet: automated system to monitor water flow,
consumption, quality and critical reservoir levels allowing
all SA operations to identify anomalies and critical trigger
parameters, thereby minimising water losses and risks
associated with regulatory licences. Also provides tools for
proactive management and trend analysis
• Continuous emissions monitoring system: online hourly
monitoring of SO2 emissions at the Smelter and particulate
matter (PM) emissions at the precious metals refinery (PMR).
The PMR has a NOx analyser and measures NOx
• Ambient air quality monitoring stations: located in and
around the Marikana operations to monitor PM and SO2
emissions
• BMS: The business management system is used as a front end
to the Safety, Health, Environmental, and Quality Management
systems for the Marikana operations, making it easier for users
to navigate to the relevant documented information
• SAP EHS: used for safety, health and environmental incident
reporting at the Marikana operations
• CURA: operational risk registers and associated action plans
are managed on this system for the Marikana operations
• SANS Standards Software: providing access to all SANS
standards at the Marikana operations
• Ecesis: Used for environmental compliance task management
at the US operations
A tailings storage facility close to our SA gold operations
Fish survey below Elk Creek close to the US PGM operations
Sibanye-Stillwater Integrated Report 2019 205
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
GROUP PERFORMANCE
TARGETS AND ACHIEVEMENTS IN 2019: SA OPERATIONS
Targets:
Group targets:
• Reduce carbon emissions by 27.3% for the Group by 2025 (premised on the 2010 Sibanye-Stillwater baseline).
Achievements/performance against Group 2019 Target
• Carbon emissions reduced by 26.4%, from the 2010 base-year to end 2019 (i.e. we have already achieved 97% of the 2025 target
stated above).
SA operations targets
• Reduction of purchased potable water of 15% and 5% for the SA gold operations and PGM operations respectively (2018 base year) to
support the water independence strategy
• Zero (0) Level 4 incidents
• 10% reduction in level 3 incidents year on year with no repeats
Achievements/performance against SA operations
2019 targets
• A 22% reduction of purchased water achieved at the SA gold operations; a 11% reduction at PGM operations (excluding Marikana)
• Zero (0) Level 4 incidents
• 20% reduction in Level 3 incidents year-on-year (excluding Marikana operations)
In addition, the following was achieved at the SA operations:
• Gap analyses completed for all SA PGM and SA gold operations, in lieu of the 2020 and 2021 target dates, respectively
• Scope 1 and 2 carbon emissions decrease of 0.6% from 2018 (excluding Marikana operations)
• An energy intensity of 0.53GJ (2018: 0.52) per tonne of ore processed
• 81% compliance in respect of all Water Use Licence (WUL) audits year-on-year for the SA gold operations, with a 2% improvement on
the combined year on year compliance
• 76% compliance in respect of all WUL audits year-on-year for the Rustenburg and Kroondal operations (excluding Marikana operations),
with a 5% improvement on the combined year-on-year compliance
• 75% compliance in respect of all Environmental Management Plans (EMPs) external biennial audits year-on-year for the SA gold
operations, with a 2% improvement on the combined year-on-year compliance
• 72% compliance in respect of all EMPs external biennial audits year-on-year for the Rustenburg and Kroondal operations (excluding
Marikana operations), with a 4% improvement on the combined year-on-year compliance
• At the SA gold operations, an 80% compliance for all mine water discharges, and 91% compliance for all treated sewage discharges
Note: The energy intensity factor takes into consideration purchased electricity and direct fuels used, which includes petrol, diesel, aviation fuel,
liquid petroleum gas, acetylene, coal and paraffin.
ACHIEVED IN 2019: US PGM operations
The following was achieved:
• Completed ISO 14001:2015 gap analysis and began work on an ISO 14001:2015 compliant environmental management system
• Secured multiple permits at all sites to support the ongoing Blitz and Fill the Mill projects
• Employed automated tailings operation, maintenance, and surveillance technology at all tailings facilities
• Streamlined environmental Key Performance Indicator (KPI) reporting process
• Conducted Initiative for Responsible Mining Assurance (IRMA) self-assessment at East Boulder mine
206
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE CDP score
The CDP, formerly the Carbon Disclosure Project, which runs the
global disclosure system that enables participants to measure and
manage their environmental impacts, awarded Sibanye-Stillwater an
‘A’ rating for our climate change action and disclosure in our 2019
CDP submission. This places the company in the prestigious global
A-List of companies pioneering response to the climate change
challenge. As the 2019 CDP is based on the previous year’s activity
(i.e. 2018), the Marikana operations made a separate CDP submission
in 2019. The Marikana operations obtained a B score for its climate
change submission. Going forward, the Marikana operations will be
included in the Sibanye-Stillwater CDP submissions.
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
• four-year closure process of the original tailings’ storage facility
at the Stillwater mine to reduce long-term closure liability
• ongoing water-treatment optimisation to improve treatment
efficiency
• ongoing LED lighting changes to improve lighting efficiency
and reduce costs
• new product reviews to reduce hazardous waste generation
and related costs
• formal environmental KPI data collection process to optimise
data collection processes
CLIMATE CHANGE AND CARBON MANAGEMENT
In this year’s integrated report, we have elected to head up our review
of the various sectors of environmental performance with our report
on climate change and carbon management, viewing this as the
overarching environmental issue that, in one way or another, impacts
all others in this section.
The scientific consensus on climate change is that the world’s climate
is changing and that these changes are in large part caused by
human activities, mainly by emitting CO2 from fossil fuel combustion.
Sibanye-Stillwater considers climate change to be the most pressing
global environmental challenge of our time, a challenge which is
inextricably linked to all other environmental challenges we face,
be it water scarcity, land degradation including erosion, pollution or
biodiversity loss – or countless socio-economic issues resulting from
these challenges.
Thus, Sibanye-Stillwater recognises how vital it is to proactively
manage our carbon footprint. We are committed to contributing to a
global solution by deploying responsible strategies and actions in the
areas within which we operate.
As the largest primary producer of PGMs, which are used in the
production of catalytic converters in automobiles to remove noxious
gases from exhaust fumes, Sibanye-Stillwater is committed to
expanding its role in providing a cleaner and sustainable environment
and improving lives.
We have been voluntarily monitoring and reporting on our carbon
emissions in our integrated reports, and in 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 Environment, Forestry
and Fisheries (DEFF) 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 DEFF in March 2018. The mandatory emissions reports
to DEFF will also inform the carbon tax payable in terms of the
Carbon Tax Act that came into effect from 01 June 2019.
The South African government has planned for the country’s
greenhouse gas emissions to peak between 2020 and 2025, to
plateau for 10 years from 2025 to 2035, and to then decline from
2036 onwards. For our part, 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 our US operations acquired in 2017 and the DRDGOLD
transaction concluded in July 2018. The base-year Scope 1 and 2
emissions amounted to 7,808,692 tonnes carbon dioxide equivalent
(CO2e). The base year carbon emissions are being reviewed to
incorporate the Marikana operations and are expected to be
completed during 2020.
Our carbon emissions were determined by following the World
Resources Institute’s Greenhouse Gas Protocol. The GHG Protocol
seeks to develop internationally accepted GHG accounting and
reporting standards. Emissions from companies using the protocol
are easier to compare. Calculations were carried out through the
application of appropriate emission factors from sources such as the
South African Technical Guidelines TG2016-1, US Environmental
Protection Agency publications, Intergovernmental Panel on Climate
Change (IPCC) guidelines and the UK Department for Environment,
Food and Rural Affairs publications. The Global Warming Potential
(GWP) rates were selected from the IPCC third assessment report
and based on a 100-year timeframe. GWP is a metric that compares
the radiative forcing of a tonne of a greenhouse gas over a given
period (e.g. 100 years for the purpose of annual greenhouse gas
inventory) to a tonne of carbon dioxide. By using GWPs, greenhouse
gas emissions can be standardised to a carbon dioxide equivalent
(CO2e). The GWP from the third assessment report was chosen as it
is also used by countries when reporting their national inventories
to the United Nations Framework Convention on Climate Change
(UNFCCC). The quantification of carbon emissions for Sibanye-
Stillwater included all applicable greenhouse gases, namely carbon
dioxide, methane and nitrous oxide. The operational control
consolidation approach was followed and is consistent with the
Group’s financial reporting. Sibanye-Stillwater quantified its Scope 2
emissions through both the location-based method and the market-
based method, as required by the GHG protocol. For companies
with operations in markets providing a choice of electricity supply,
companies should report Scope 2 emissions according to a location-
based method and a market-based method. Each method’s results
Sibanye-Stillwater Integrated Report 2019 207
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
reflect different risks and opportunities associated with emissions
from electricity use and can inform different decisions and levers to
reduce emissions. Our Beatrix operation in the Free State in South
Africa and the Stillwater mine and Columbus metallurgical complex in
Montana, US, have choice of supply. A location-based method reflects
the average emissions intensity of grids on which energy consumption
occurs (using mostly grid-average emission factor data). A market-
based method reflects emissions from electricity that companies
have chosen. The GHG protocol provides for companies to choose
which method’s results to use for goal setting and other benchmarks.
Sibanye-Stillwater has chosen the market-based method for goal-
setting and other benchmarks as it provides a better indication of
progress against targets. The market-based method emissions are
tracked throughout this report except where otherwise stated.
The IPCC fifth assessment report 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. This
was the basis for setting our base year at 2010.
Our Group science-based emissions reduction target was set before
the acquisition of the Marikana operations. Our Group Scope 1 and
2 carbon emissions, excluding the Marikana operations increased by
1.4% from 2018 to 2019. The Scope 1 and 2 emissions decreased
by 26.4% from the 2010 base year and 97% of the 2025 target has
been achieved.
Scope
Scope 1
Scope 2 location-based
Scope 2 market-based
Scope 1 and 2 location-based
2019 emissions
(excluding
Marikana
operations)
574,080
5,163,767
5,169,612
5,737,848
2025 target
N/A
N/A
N/A
N/A
Scope 1 and 2 market-based
5,743,693
5,676,919
Our Group Scope 1 and 2 carbon emissions, including the Marikana
operations increased by 30.8 % from 2018 to 2019.
See the fact sheet: Generating clean energy: the Beatrix methane
capture and destruction project
SIBANYE-STILLWATER AND THE SCIENCE BASED
TARGETS INITIATIVE
The Science Based Targets Initiative (SBTi) is a collaboration
between CDP, the United Nations Global Compact, the World
Resource Institute and the World Wide Fund for Nature. The
initiative mobilises companies to set meaningful, science-based
targets and boost their competitive advantage in the transition
to the low-carbon economy. SBTi’s overall aim is that, by 2020,
science-based target setting will become standard business
practice and corporations will play a major role in driving down
global greenhouse gas emissions.
In June 2018, Sibanye-Stillwater sent their Group target* – to
reduce absolute Scope 1 and 2 GHG emissions by 27% by
2025 from a 2010 base year – to the SBTi for review against
their assessment criteria. In March 2019, the SBTi approved the
Group target, demonstrating that Sibanye-Stillwater’s emissions
reduction targets conform to the required science-based
calculation methodology and is aligned to contribute to the
global climate change challenge.
Targets adopted by companies to reduce GHG emissions are
considered ‘science-based‘ if they are in line with the level of
decarbonisation required to keep global temperature increases
below 2°C compared to pre-industrial temperatures, as described
in the Fifth Assessment Report of the Intergovernmental Panel
on Climate Change (IPCC).
* The Group target excluded the Marikana operations as their
emissions were not included in the base year emissions. The
base year is being reviewed to include the Marikana operations
and is expected to be completed in 2020. Thereafter, the Group
emissions reduction target will be reviewed. Using a common
methodology, we will then integrate the Group’s carbon
inventory, which takes into consideration the new greenhouse gas
reporting regulations and the SARS rules in terms of the Customs
and Excise Act.
“To maintain alignment with the long-
term national emissions reduction
trajectory, switching to low-carbon fuel
sources where feasible is desirable.”
Stillwater mine at the US PGM operations
208
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA operations
South Africa’s carbon tax legislation came into effect on 1 June 2019.
While certain aspects of the carbon tax remain uncertain, the direct
financial implications of the carbon tax for Sibanye-Stillwater, in
today’s terms, at the 2019 carbon footprint and at the basic rate of
R120 per tonne of CO2e, would be approximately R3.3 million per
annum for the period 1 June 2019 to 31 December 2019 (or
R6 million annualised) on the basis that electricity (i.e. Scope 2
emissions) is excluded . In other words, Sibanye-Stillwater’s final
liability will be affected by the finalisation of the greenhouse gas
reporting regulations and the extent to which it is able to make
use of the full suite of allowances that are built into the carbon tax
design. The first payment of the carbon tax is due by 30 July 2020.
The carbon tax rate increases by CPI plus 2% annually until the
end of 2022, and thereafter the tax liabilities will be adjusted and
are expected to increase exponentially in the second phase (2023
onwards) through the inclusion of electricity in the tax net and the
reduction and potential complete scrapping of the tax-free thresholds.
Early in 2019, Sibanye-Stillwater conducted a climate change scenario
analysis, prompted by the Task Force on Climate-related Financial
Disclosures (TCFD)’s recommendations. The TCFD is an industry-led
task force established by the Financial Stability Board to develop
consistent, voluntary climate-related financial risk disclosures for
stakeholders. The analysis identified water as well as both the supply
and the cost of electricity as a risk. See further details on Water
Conservation and Water Demand Management (WCWDM) plan on
page 214 and the energy efficiency section on
page 212.
Flowing from the scenario analysis, a low carbon transition plan
was developed, and which includes, amongst others, several
initiatives aimed at reducing electricity consumption by
approximately 2% per annum.
The SA operations’ year-on-year annual average, Scope 1 and
Scope 2 CO2e emissions, excluding the Marikana operations, declined
by 3.5% (2018: 3.9%) at the end of 2019 to 5,492,687 tCO2e from
the 2010 base year emissions of 6,539 971 tCO2e, exceeding our year-
on-year target of 2.1%. The Beatrix methane project in the Free State
province continued to reduce Scope 1 and 2 emissions. The project
entails the removal of methane from the Beatrix South underground
sealed-off section to surface. This methane was routed to electricity
generators and a backup flare. Approximately 3,747 MWh of electricity
was generated. The backup flare combusted any methane that was not
consumed by the electricity generators. Through flaring, the methane
is transformed into carbon dioxide and thereby reduces the greenhouse
gas effect. The Beatrix methane project also generated carbon credits
during the first crediting period from 2011 to June 2018. During 2019,
the second batch of 53,956 carbon credits was verified and issued by
the UNFCCC. The verification of the third and final batch of carbon
credits from this project is underway.
The appointment of energy service companies to assist with energy
optimisation initiatives (optimisation of compressed air and water
refrigeration circuits) has been instrumental in the continuous
reduction of our carbon footprint and therefore the potential carbon
tax payable. Scope 2 emissions (purchased electricity), excluding the
Marikana operations, decreased by 0.6% from 5,002,404 tCO2e to
4,972,750 tCO2e, primarily due to the implementation of energy
efficiency initiatives. Reducing electricity consumption would, by
extension, reduce our carbon emissions, and feed into our science-
based target
(see box on page 208).
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, proposed to be constructed in the West Rand
near the gold operations, is expected to reduce carbon emissions by
129,858 tCO2e per annum.
See page 212 for details.
The SA operations Scope 1 and 2 emissions, inclusive of the Marikana
operations increased by 29.6% year on year from 5,525,134 tCO2e to
7,162,778tCO2e. Our base year emissions will be restated in 2020 to
incorporate the Marikana operations and following this our emissions
reduction target will be reviewed and reset.
US PGM operations
Annual average Scope 1 and Scope 2 carbon emission levels
increased by 74% (2018: decreased 5.0%) in 2019 to 245 tCO2e.
Scope 1 emissions (direct fuel use) increased by 17% due to higher
consumption of diesel for transportation and explosives usage
related to the Blitz expansion project. Scope 2 emissions (purchased
electricity) increased by 101% due a change in the supply of electricity
being a combination between renewable and non-renewable.
Our US PGM operations are situated in a pristine environment
Sibanye-Stillwater Integrated Report 2019 209
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
Total CO2e emissions: Scope 1, 2 and 3 (000t CO2e)
US
operations
SA operations
Group
2018
US
operations
SA operations
Group
2017
1 US
operations
SA operations
PGMs
PGMs 2
Gold
Total
PGMs
PGMs
Gold
Total
PGMs
PGMs
Gold
Group
Total
323
54
164
104
203
44
113
196
32
43
121
366
6,719
6,725
1,597
na
191
197
211
0
366
366
2,984
3,544
2,984
3,544
5,097
5,097
na
366
565
1,398
3,604
5,837
1,398
3,604
5,837
na
183
183
544
na
565
1,573
4,081
1,573
4,081
980
1,016
953
433
2,157
569
995
593
2,539
46
na
95
95
Scope 1 (excluding fugitive
mine methane)
Scope 1 (fugitive mine
methane)
Scope 2 location-based
Scope 2 market-based 2
Scope 3 3
CO2e intensity (per tonne
milled) for scope 1 and 2
0.16
0.18
0.10
0.27
0.14
0.11
0.07
0.24
0.13
0.01
0.06
0.25
1 January to December 2017 in accordance with World Resources Institute (WRI) Greenhouse Gas Protocol
2 Scope 1 and 2 emissions include fugitive mine methane. The fugitive mine methane emissions for 2019 amounted to 366 037t 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. Though the base year and prior year emissions has as
yet not been restated to include the Marikana operations, as a first step, towards meeting the recommendations of the World Resources Institute,
greenhouse gas protocol, A corporate accounting and reporting standard, revised edition, the scope 1 and 2 emissions and scope 3 emissions include
the emissions from the Marikana operations for the 2019 calendar year. The Marikana operations were acquired in June 2019 and the full integration
and alignment is still underway. For years prior to 2019, the location-based scope 2 emissions were used as a proxy for the market-based emissions in
accordance with the WRI GHG Protocol
3 Scope 3 emissions decreased in 2019 as compared to 2018, as a result of operational downscaling (2, 6, 7 shafts at Driefontein and Beatrix 1 shaft and
1 gold plant) which led to lower levels of commodities being used, improvement in the emission factor for refining and smelting and the decrease of
the Eskom electricity transmission and distribution loss emission factor for the SA operations from 0.0567 to 0.02.
For Scope 3 emissions from the US operations, 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.
The following Scope 3 categories are not included:
• Capital goods, fuel- and energy-related emissions not included in Scope 1 or Scope 2: emissions associated with extraction, production and
transportation, waste generated in operations, downstream transportation and distribution, end-of-life treatment of sold products, and
downstream leased assets from Marikana operations were not historically tracked and are excluded. These categories will be phased-in over the
next few years
• 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
The following Scope 3 categories are 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 waste water in
facilities owned or operated by third parties (such as municipal landfills and waste water 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
• Use of sold products: CO2e emissions associated with the use of 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
210
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE AIR QUALITY MANAGEMENT
SA operations
The procedure for air quality management monitoring and reporting
is currently in the process of being reviewed to integrate the recently
acquired Marikana operations.
Atmospheric emissions licences are in place at all operations where
they are required including Beatrix, Burnstone, Cooke, Driefontein,
Kloof, and the Marikana operations. Operations have a range
of installed abatement technologies to assist with emissions
management and abatement – these include but are not limited
to electrostatic precipitators; variable throat scrubbers and sulphur
fixation plants. All operations submitted annual reports for licensed
activities to DEFF’s National Atmospheric Emissions Inventory System
online portal in March 2019.
At the SA gold operations, external audits on AELs commenced
during Q4 2019 and the reports are expected to be finalised by the
end of Q1 2020.
Several of the airsheds within which we operate and have mining
operations in (e.g. the Waterberg-Bojanala area of North-West and
the Highveld Priority Area in the Gert Sibande District Municipality)
have been declared ‘priority areas’ which, in terms of the National
Environmental Management: Air Quality Act (NEM: AQA) is believed
to be an area where the ambient air quality standards are being, or
may be, exceeded in the area and where air quality is perceived to be
generally poor and/or deteriorating. Our Burnstone operation and the
PMR are located in the declared Highveld Priority Areas. During 2019,
Sibanye-Stillwater continued our active participation in the Highveld
Priority Area and the Bojanala Implementation Task Team meetings.
Following the acquisition of the Marikana operations, the smelter,
BMR, PMR and assay laboratory have been added to the scope of
air quality management in terms of point source emissions. The key
challenges in terms of compliance to the 2020 minimum emission
standards (and 2020 AEL limits) lie at the PMR in terms of particulate
matter emissions from the main stack, in spite of the various
scrubbing circuits in place to remove the key pollutants. A project has
been initiated to upgrade the ignition scrubber and install a cloud
chamber to reduce particulate matter levels to below the 2020 limits.
The smelter and base metals refinery have implemented a number of
projects to reduce emissions to below the 2020 limits ahead of the
1 April 2020 deadline, including upgrading and tweaking of existing
scrubber and electrostatic precipitator pollution control equipment,
as well as the tie-in of the selenium and tellurium removal stack at
the base metals refinery into the smelter’s SO2 scrubbing circuit. In
addition to this, a fugitive emissions reduction management plan has
actively been implemented at the smelter to reduce our ground level
concentrations of SO2, resulting in a significant reduction in ground
level concentrations of SO2. Our strategy and emissions reduction
management plans speak to the staggered implementation of
these projects over the years to ensure compliance is achieved and
maintained.
The Inspectorate from the Gert Sibande District Municipality carried
out a compliance inspection of the Burnstone operation in May 2019
and no non conformities were raised.
Dust remains a challenge and a continual focus area. Dustfall
regulations require areas to be classified as residential or non-
residential in accordance with the local town-planning scheme.
Dustfall levels are compared with the limits stipulated in the dustfall
regulations, and together with exceedances, reported to the
authorities (district municipalities as legislated competent authorities
together with action plans).
At our SA PGM operations dust management was prioritised as part
of our 2017 Environmental Remediation Plan. In 2018 a five-year
dust mitigation plan was developed. The plan called for several
detailed specialist studies including shear modelling, dust dispersion
modelling and dust bucket placement. These studies have since been
concluded with the draft reports received in December 2019. Monthly
dust deposition monitoring is conducted by external third parties.
Current dust control and dust mitigation measures implemented
include the use of netting, canon spraying and planting of tamarisk.
The Marikana operations implemented chemical dust suppression
on Western Platinum tailings dams 3, 4 and 5 and installed canon
sprayers on Eastern Platinum tailings dam 1, where re-mining
is taking place. Theft of the irrigation pipelines on the facilities
continues to be an ongoing challenge.
Nitrogen oxide and sulphur dioxide emissions (tonnes)
Nitrogen oxides (NOx)
SA operations 2
SA PGM operations
SA gold operations
US operations
Group
Sulphur dioxides 3 (SO2)
SA operations
SA PGM operations
SA gold operations
US operations
Group
1 2019
2018
2017
1,472
1,184
288
221
1,119
1,126
662
457
112
667
459
105
1,693
1,231
1,231
1,889
1,889
n/a
4
1,893
n/a
n/a
n/a
4
4
n/a
n/a
n/a
6
6
1 Marikana operations included from 01 June to 31 December 2019
2 Nitrogen oxide emissions for SA are derived by the multiplication of
fuels (diesel, petrol, liquid petroleum gas, coal, helicopter fuel and
paraffin) by the corresponding emission factors.
3 Sulphur dioxide emissions are from the Marikana PGM smelters
and quantified through a combination of stack measurements and
mass balance
The US operations also include SO2 emissions from the Columbus
Metallurgical Complex
Sibanye-Stillwater Integrated Report 2019 211
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
US operations
We continue to leverage technology to reduce air emissions to levels
well below state and federal limits. Air quality at our US operations is
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, four tonnes of SO2 were
released, amounting to 4.7% of our permitted limit. Monthly discharge
rates have been routinely less than 5% of annual permitted levels.
carbon footprint. Hamstrung by regulatory constraints, the project
has stalled over the last two years. Sibanye-Stillwater is however
encouraged by Government’s recent public announcements that the
red tape and bureaucracy that has inhibited such projects will be
removed, allowing the private sector to aid in relieving the national
power supply deficit. The project team is now actively working with
government to remove the regulatory barriers and, subject to the
required reforms, the project will be progressed through to financial
close in 2020.
In parallel, management continues to participate in several forums
with the aim of advocating for affordable electricity, resolving the
operational and financial woes faced by Eskom and guiding the
structural reform of the electricity supply industry, ultimately to ensure
the sustainability of our operations and global competitiveness. These
forums have included engagement with stakeholders such as Eskom,
government, the National Energy Regulator of South Africa, the
Energy Intensive User Group and the Minerals Council South Africa.
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 local Native American tribe.
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. In 2019, the US upgraded an HVAC system
with significant kW hours per year savings, as well as replaced
hundreds of fluorescent and metal halide light fixtures with LED
fixtures. These projects are done in partnership with utility providers
under the University System Benefits (USB) programme. The Montana
legislature created this programme after Montana deregulated its
electric industry in the late 1990s. At the time, the utilities that
were deregulated were undertaking energy efficiency projects that
the legislature deemed beneficial. Such projects are funded with a
surcharge on utility bills. Under electric USB legislation, utilities serving
large customers such as the Stillwater Mine and the Metallurgical
Complex, reimburse USB charges for internal energy efficiency
projects. The US operations have worked closely with its electricity
supplier on these energy efficiency projects through the USB
programme since its inception.
ENERGY EFFICIENCY
SA operations
To counter the prospects of rising electricity costs and the impact
of attracting a carbon tax liability 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
(See page 210 for details of our CO2e emissions). Our
cost base
energy management strategy focuses on holistic energy efficiency
using digital applications, such as digital twinning, and the application
of new technologies; as well as ongoing improvements in the use
of compressed air, pumping, ventilation and refrigeration and the
optimisation of our footprint. This differs to the traditional approach
of pursuing and implementing standalone efficiency projects.
In 2019, the SA gold operations consumed a total of 3.42TWh
of electricity – a 9.8% reduction from the 2018 consumption of
3.79TWh, largely as a result of energy efficiency improvements,
the strike, the care and maintenance of four shafts and Eskom
interruptions. Successfully implemented interventions enabled a
0.11TWh (3.1%) reduction in consumption and saved R171 million
(2018: R179 million) in electricity expenditure.
2019 electricity consumption for the SA PGM operations increased
to 2.23TWh (2018: 1.48TWh) with the inclusion of the Marikana
operations. Active intervention, through the implementation of the
energy management strategy, enabled the Kroondal, Rustenburg and
Marikana operations to collectively achieved a 0.04TWh reduction in
consumption and saved R38 million in electricity expenditure.
In terms of NRS048-9, in the event that Eskom cannot supply national
electricity demand and initiates a system emergency, the operations
are issued a ‘load curtailment’ instruction several hours in advance,
requiring 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 28 load curtailment events experienced
through Q1 2019 to Q4 2019, the operations managed to meet our
obligations while minimising production losses, through the likes
of revised pumping schedules at the D10 and K10 shafts. Further,
optimised response plans have been put in place to minimise impact
and risks associated with any potential future load curtailment events.
As part of the medium- to long-term energy management strategy,
Sibanye-Stillwater is still pursuing the first 50MW phase of its 150MW
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
212
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Electricity consumption (TWh)
SA operations
Gold
Beatrix
Cooke
Driefontein
Kloof
PGMs
Kroondal
Rustenburg
Marikana
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 ex Aquarius
5 Restated due to totalling errors
6 Marikana operation only acquired from June 2019
Energy intensity (GJ/tonne milled)
SA operations
Gold
Beatrix
Cooke
Driefontein
Kloof
PGMs
Kroondal
Rustenburg
Marikana
US operations
Stillwater 2
East Boulder
Group
2019
5.65
1 3.41
0.49
0.39
1.14
1.37
4 2.22
0.30
1.06
0.85
5 0.35
0.26
0.08
5.98
3 2019
0.53
0.85
0.88
0.33
4.60
0.68
0.34
0.17
0.36
0.51
1.41
1.94
0.70
0.56
2018
5.28
1 3.79
0.57
0.43
1.38
1.39
4,5 1.48
0.30
1.18
6 n/a
0.32
0.24
0.08
5 5.57
2018
0.52
0.81
0.72
0.38
1.61
0.73
0.28
0.17
0.34
n/a
1.34
1.89
0.67
0.55
2017
5 5.74
5 4.14
0.63
0.54
1.50
1.47
1.60
0.36
1.24
6 n/a
2 0.72
2 0.19
2 0.53
5 6.46
2017
0.60
0.79
0.78
0.53
0.91
0.94
0.22
0.21
0.22
n/a
1 0.95
1 1.40
1 0.49
0.69
1 May to December 2017
2 Includes the Columbus Metallurgical Complex
3 Includes Marikana operations from 01 June to 31 December
The energy intensity factor takes into consideration purchased electricity and direct fuels used, which includes petrol, diesel, aviation fuel, liquid
petroleum gas, acetylene, coal, paraffin, propane, natural gas, heavy fuel oil and methane.
Sibanye-Stillwater Integrated Report 2019 213
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
WATER USE MANAGEMENT
• Reduce water loss through:
Sibanye-Stillwater applies an integrated approach to the management
of our water footprint and water systems infrastructure. Efficient
water use is vital to ensure preservation and sustainability of the
resource for the benefit of all stakeholders and an objective we are
committed to. We aim to achieve this by minimising our use of water
with a high socio-environmental value and utilising water with a low
socio-environmental value.
Our water conservation and water demand management (WCWDM)
plan outlines the key initiatives driving continuous water footprint
management improvement. The plan consists of the following
components:
• Potable water (clean water that is suitable for human consumption
and may be used within mine processes) independence – improving
security of supply and minimising our impact on external water
resources using alternative available ground water sources and
rainwater harvesting, thereby reducing reliance on purchased water
sources (high socio-environmental);
Group water use summary
– creating water footprint visibility through the implementation
of effective real time metering (i.e Zednet), water balance
management reporting, proactive leak detection and immediate
repair initiatives
– minimising losses of water through evaporation and seepage by
optimising the density of tailings deposition and recovering and
recycling of water at our tailing facilities
– optimising water use efficiency by tracking and managing water
use efficiency KPIs for all consumers
• Water quality management – comprehensive water quality
monitoring programmes, minimising pollution of the resource
through separation of clean and impacted water streams, recycling
of impacted streams, treatment where required
US
operations
Group
Total
2019
SA operations
Group
2018
US
operations
SA operations
Group
2017
US
operations1
SA operations
Total
PGMs 9
Gold
Total 8
Total 8
PGMs 8
Gold
Total
PGMs
PGMs
Gold
123,925
3,590 120,335
19,486 100,849 124,796
4,073 120,723
14,944 105,779 125,800
2,447
14,496 108,857
75,299
4,029
71,270
152
71,118
70,791
3,580
67,211
0
67,211
70,586
1,714
0
68,872
50,014
21,941
949
49,065
19,334
29,731
54,725
1,213
53,512
14,944
38,568
55,213
733
14,496
39,984
147
21,794
13,059
8,735
20,278
120.66
20,157
9,029
11,128
21,036
94
9,040
11,902
44
16
44
68
29
37
10
38
60
29
38
13
62
30
42.88
1.51
41.37
26.30
15.08
41.37
3.5
37.87
20.57
17.30
41.83
1.9
20.90
19.03
1.17
7 0.63
1.19
0.74
1.97
1.32
7 0.35
1.41
0.73
2.23
1.32
0.39
0.69
2.10
Total water
withdrawn 2 (ML)
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)
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
(see incident management on page 222)
4 Water used: total withdrawn minus water discharged
5 Total water purchased: potable water purchased and waste water purchased at the Rustenburg operation
6 Volumes treated: dry tonnes processed in Sibanye-Stillwater metallurgical plants and concentrators
7 Intensity: water used/tonne (Volume) treated. For 2018, the intensity levels for the US operations were calculated using water tonnes treated, not
mining tonnes treated
8 SA PGM figures restated for 2018 after the Kroondal Pits water abstracted was recalibrated.
9 Marikana from June to December 2019 included
214
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Driving water independence
The focus of the SA operations is to drive independence from external
water suppliers and simultaneously improve security of supply
through the identification and licensing of other available sources.
Our dependency on municipal water and external suppliers (e.g. Rand
Water Board, Sedibeng Water Board, Rustenburg Water Service Trust)
is 44% of our total water usage across the SA operations. Reducing
our water footprint and dependency on external suppliers not only
enables high value socio-environmental water security for local
communities and towns, but also provides substantial opportunity to
reduce costs.
One of the major opportunities to reduce our dependence on external
water suppliers is to treat a portion of the approximately 200ML/day
excess water at our SA gold operations to potable water standards
and replace the current demand of approximately 25ML/day. Sibanye-
Stillwater currently operates several water treatment facilities across
the footprint. A project to install a 4ML/day facility as part of a
phased approach at our Kloof operation is expected to be rolled out
in 2020.
Municipal water independence at our SA PGM operations is critical.
The PGM operations are located in and around Rustenburg, a city in a
dry, water-constrained region of the North West Province, the region
with the fastest growing population in South Africa. Rand Water Board,
the biggest supplier of drinking water in the region, has announced
their inability to keep up with the increasing demand due to insufficient
infrastructure and the current state of the Integrated Vaal River System.
Municipal augmentation projects to improve water security in this
region are far behind schedule and there are limited medium- and long-
term plans in place to support the growing demand.
Sibanye-Stillwater’s WCWDM plan, aims to address water security in
the region by securing and substituting potable water with grey and
available ground water, the use of anthropogenic aquifers to optimise
SA operations: potable water purchased (ML)
rainfall harvesting, minimising seepage losses from tailings facilities
by implementing scavenger well systems and integrating the water
systems of Marikana, Rustenburg and Kroondal ,such that water rich
areas can supply water scarce areas.
Our water independence will not come at the cost of accessing water
sources that have biodiversity value or are in sensitive areas.
Reducing water loss
The Zednet automated continuous water monitoring system, rolled out in
2018, is now used at all SA operations, except for Marikana. Marikana’s
current monitoring regime and requirements are being assessed against
the Group standard. More than 300 potable water meters monitor water
consumption continuously, enabling proactive water loss detection and
improved leak repair management and monitoring.
With the availability of continuous monitoring and data, an
assessment conducted in 2018 concluded that some 50% of
our costly potable water supply was lost to leakage at our gold
operations. Efforts to reduce the losses proved to be extremely
effective (refer to table below). Our reliance on purchased potable
water at our SA gold operations reduced by 2,393 ML (22%) year-on-
year against a target of 15% reduction and 725 ML (11% excluding
the Marikana operations) at our SA PGM operations against a target
of 5% reduction. This reduction translates to a cost saving of more
than R45 million.
In 2019, the SA operations spent R220 million (excluding Marikana)
(2018: R245 million) on the purchase of potable water, which was
10% less than in 2018 despite tariff increases. The reduction can be
attributed to the focus on reducing water losses combined with water
use footprint reduction initiatives. The Marikana operations spent
R60 million on potable water from 1 June to 31 December 2019.
Gold operations
Beatrix
Cooke
Driefontein
Kloof
Gold – total
PGM operations
Kroondal
Rustenburg
Marikana 1
PGM – total
SA operations
1 Includes Marikana operations for the full year.
2019
2,331
1,546
452
4,406
8,735
1,853
3,896
8,111
13,860
22,595
2018
2,863
1,790
1,603
4,872
2017
2,881
2,123
2,210
4,688
2016
2,758
2,692
1,657
5,247
2015
3,201
4,112
1,726
5,755
11,128
11,902
12,354
14,794
1,917
4,557
n/a
6,474
17,602
1,744
4,637
n/a
6,381
18,283
2,333
4,977
n/a
7,310
19,664
–
–
n/a
–
14,794
Sibanye-Stillwater Integrated Report 2019 215
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
Water quality management
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.
Within the SA operations, we influence the four major catchment
areas in which we operate – Crocodile West/Limpopo (gold and
PGM operations), Olifants (PGM operations) and Vaal (gold and
PGM 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.
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 and biodiversity 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 WCWDM targets
The new water quality non-conformance procedure was instituted
at the end of 2018. The procedure applies to all discharges into the
environment and therefore has largely been applicable to the gold
operations given that the SA PGM operations are largely discharge
free and zero effluent/discharge operations. Under this procedure,
we examine our water quality compliance in the downstream
environment in terms of various limits, most of which are more
stringent than official water use licence limits. Entries are recorded on
a monthly basis, and issues are identified, investigated and corrected
as per the non-incidents procedure. The Marikana operations have
permission (in terms of the integrated WUL) to discharge from the
final effluent dams at seven of the waste water treatment works
across the property. This water is however re-used at the operations
and is only discharged as a contingency when operations shut down
for a number of operational reasons. As a result of the improved
focus on the management of water quality, an average discharge
compliance figure of 81% was achieved for the gold operations. This
is an improvement on the 79% achieved in 2018 notwithstanding the
increased stringent limits received for some new WULs.
While the PGM operations are zero discharge sites, infrequent and
uncontrolled discharges do occur. All discharges are reported, and this
information communicated to the authorities. Resulting water quality
non conformances are primarily related to nitrates and sulphates.
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, as well as the monitoring of
management measures
• floodline delineations to determine watercourse floodline
boundaries, including drainage lines
Water quality compliance percentages for all water
discharged
Water quality compliance is measured against the relevant WUL
limits assigned for each discharge to the receiving environment.
The compliance percentages reflected are only when discharges
to the receiving environment are made and do not include where
the discharges are re-circulated for other uses as is the case for all
SA PGM operations except for the waste water treatment works at
Marikana which discharges excellent water quality when there is no
demand for re-use.
The SA gold Thuthukani shaft
216
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Operation
Compliance (%)
to WUL limits
2019
2018
Comment 1
Beatrix
Treated effluent
91
97 Good compliance to the new WUL received in July 2019 was shown, despite more
stringent limits mainly related to the efforts to optimise operational control.
Burnstone
89
82 Moderate compliance was shown to the limits.
Driefontein
Underground water
Driefontein
Treated effluent
Ezulwini
Underground water
The limits applied refer to instream reserve qualities and not discharge limits that are yet to
be set.
98
97 Excellent compliance remaining largely in line with the 2018 reporting period.
90
91 Very good compliance similar to the previous year was shown for the treated sewage
effluent discharges.
66
62 Poor compliance to the WUL limits continues to be shown. It should be noted that
some erroneous limits have been assigned and therefore an amendment application has
been submitted to ensure the assignment of limits that are achievable and protective of
the receiving environment and other water users. If the erroneous limits are excluded,
compliance for the past year was found to be 86% (moderate) as compared to the 66%
compliance when all limits are considered.
Further initiatives are underway to ensure the continuous improvement in terms of water
quality, which includes the continuous optimisation of the pH adjustment treatment
process as well as the tracing of key dirty water streams to ensure changes occurring
underground do not influence the effectiveness of the treatment strategy.
Kloof
Combined underground
and treated effluent
91
86 Very good compliance was shown for the underground and treated sewage effluent
discharges.
Cooke
Underground water
52
56 Poor compliance to the WUL limits. The Cooke operation is still waiting for the outcome of
an amended WUL application which was submitted on 8 December 2017. The application
addressed the overly stringent WUL compliance limits. Compliance against the application
would have increased the 2019 compliance from 52% to 82%.
The water from the Cooke 1 to 3 operations is treated via a pH adjustment process before
discharge to the Wonderfonteinspruit catchment. Continues pH control and dam cleaning
recquired to sustainably preserve pumping equipment and discharge compliance.
The Department of Water and Sanitation has recently agreed to a co-discharge pilot of this
water combining the separate discharges of Cooke 1 with Cooke 2 and 3. During the pilot,
metal and salt discharge compliance increased as a result of the dilution provided by each
water stream for the other. The following actions have been instituted to address the poor
compliance:
• Integrated management system to control pH both at the underground settlers and on
surface. This required consistent lime supply and diligent control
• Suspended solids control through regular dam cleaning/agitation
• Pursuit of combined discharge application and an outcome for the December 2017 WUL
amendment application. An application for permanent closure and cessation of the
operations is underway which will ultimately address the discharge water quality.
Marikana
treated effluent
100
100 All treated effluent is re-used in the mining process, save for a small portion of treated
effluent which discharges excellent quality water under licence when there is no demand
for re-use.
1 Compliance classes are defined as follows: Excellent >95%; Very good >90% but <95%; Moderate >80% but less <90% and poor <80%. These
classes define descriptive categories used throughout the report regarding water quality to inform management and provide alignment to
National Standards.
Sibanye-Stillwater Integrated Report 2019 217
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
groundwater injection well or land-applied using agricultural pivots
for beneficial use.
Through the Good Neighbor Agreement, we are working with the
Stillwater Protective Association and 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 (AMP) has
been developed to adjust as conditions change, knowledge improves,
regulatory criteria is modified or as targets change. The AMP is a
tiered response plan that will lower our triggers for water quality
reporting and action to levels below state or federal limits. The AMP
is expected to be finalised in 2020.
US PGM 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. In 2019, these ponds performed as expected with
average disposal rates of approximately 600gpm.
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.
Disk filtration systems
Both the Stillwater and East Boulder mine sites continued to
enhance their biologic water treatment systems. Lower metals
and nutrients limits will take effect when the sites’ Montana
Pollutant Discharge Elimination System permits are renewed in
the fall of 2020. To accommodate the total nitrogen and metals
limits, a disk filtration system will be installed at each of the sites
abutted to the biologic water treatment plants. While installed
primarily for removal of organic nitrogen, this system also filters
microscopic metals particles that accumulate on the biomass,
thus leading to increased metals removal.
Waste water treatment works – SA operations
During 2019, Sibanye-Stillwater SA operations embarked on a
process to review the operation and management of all waste water
treatment works under our control. The improvement in discharge
compliance, efficiency improvements and a sustainable post mining
economy underpin the key focus on the initiative. The review process
will be concluded in H1 2020.
The waste water treatment works are currently running at compliance
levels of between 85% and 95%. Automated flow-adjusted chlorine
dosing stations and additional sludge drying beds will be implemented
during 2020 to improve overall discharge compliance.
US PGM operations
The most critical component of the US PGM operations’ water
management is generally water quality when discharged. All discharged
water is treated to state and federal drinking water standards, and
no water, even when treated, is discharged directly to surface water.
Instead, all discharged water is released to either percolation ponds,
land application disposal systems, or deep injection wells.
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.
In a low-impact, state-of-the-art technical process, the balance
of the mine water not recycled is treated through our mixed-bed
bio-reactors. Here, 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
218
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE RESOURCE UTILISATION AND WASTE MANAGEMENT
MATERIALS CONSUMPTION
At the SA gold operations, the strike that ended in April 2019 and the closure of Beatrix 1 and Driefontein 2, 6 and 7 shafts contributed to
lower consumption of timber, cyanide, explosives, hydrochloric acid, caustic soda, cement, diesel, lubricating oil and grease. During 2019, the
volume of surface material processed at the gold plant increased to compensate for the lower tonnage from underground. The surface rock
dump material has a low in-situ pH below 6, as well as having a mineralogy with deleterious copper. This resulted in more lime consumption.
More lime was added to the gold plant process in order to increase the pH to levels that facilitate gold leaching as well as to thermodynamically
suppress the formation of copper species that can adsorb onto activated carbon impacting on bullion purity. The SA gold operations’ diesel
consumption decreased by 49.7% when compared to 2018, as a result of the lower diesel utilisation during the wage strike and closure of
Beatrix 1 and Driefontein 2, 6 and 7 shafts. The diesel consumption for the SA PGM operations increased by 37.5% compared to 2018 with the
inclusion of the Marikana operations.
At the US PGM operations, a comparison of year-on-year use showed an increase in all commodity usage due generally to the expansion efforts
at the US operations.
Materials consumed
Timber (t)
Cyanide (t)
Explosives (t)
Hydrochloric acid (t)
Caustic soda (t)
Lime (t)
Cement (t)
Diesel (kL)
Lubricating and hydraulic
oil (kL)
Grease (t)
Group
Total
67,951
2,509
34,813
5,472
3,242
73,356
50,719
29,846
8,778
220
2019
US
operations
SA operations
PGMs
PGMs2
Gold
20,764
46,682
505
NA
NA
4,409
27,999
1
128
876
749
2,509
2,738
4,595
2,365
6,777
7,978
58,601
17,880
26,793
9,696
17,384
568
23
7,135
106
6,046
2,767
1,074
91
Group
Total
85,564
3,450
30,437
5,148
2,632
50,278
19,809
26,903
8,730
154
2018
US
operations
SA operations
Group
2017
1 US
operations
SA operations
PGMs
PGMs
Gold
Total
PGMs
PGMs
Gold
146
NA
14,193
71,225
117,706
NA
3,450
7,552
263
NA
NA
16,041 101,402
4,331
21,920
4,186
31,942
3,893
22,140
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
8,294
8,062
60,706
16,459
3,459
40,788
12,635
5,502
26,059
7,344
12,772
5,943
6,817
1,466
7,170
17
122
224
565
11
5,194
1,411
26
187
7,552
5,902
4,469
3,174
72,378
1 Represents consumption from May to December 2017
2 Includes Marikana for seven months from June to December 2019
WASTE MANAGEMENT
Sibanye-Stillwater supports responsible environmental management of all waste streams including chemicals and wastes and minimising waste to
landfill. The existing waste management procedure is currently under review to fully integrate the Marikana operation as well as to ensure that our
new waste procedure fully covers the suite of waste streams that we generate as well as all new and emerging waste legislation requirements.
Waste management (Mt)
Group
Total
33.76
3.9
2.23
8.21
5.98
24.89
Tailings storage facility
deposition
Tailings deposition into pits
Waste rock/DMS
deposition
Retreated mineral waste-
from waste rock 2
Retreated mineral waste
from tailings dams 3
Total mineral waste
1 May to December 2017
2019
US
operations
SA operations
PGMs
PGMs
Gold
0.66
NA
22
0
11.1
3.9
Group
Total
29.08
3.89
2018
US
operations
SA operations
Group
2017
1 US
operations
SA operations
PGMs
PGMs
Gold
Total
PGMs
PGMs
Gold
0.67
NA
15.0
0
13.41
3.89
32.70
3.27
0.39
17.05
15.26
0
0
3.27
1.4
0.83
6.44
1.3
5.14
3.39
0.87
12.52
0
0.81
0
0
2.08
2.06
22.83
7.4
3.9
15
12.18
0.69
0
11.49
11.45
0
0
11.45
29.27
1.97
10.00
17.30
39.36
1.260
19.57
18.53
2 Gold-bearing material such as waste rock dumps retreated at plant
3 PGM and chrome rich tailings material from tailings dams retreated at Concentrator Plant
Sibanye-Stillwater Integrated Report 2019 219
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
SA gold and PGM operations mineral wastes
In the wake of the Vale tailings dam failure, a review was done
during H1 2019 of the effectiveness of our tailings storage facilities
management system and conditions. The Church of England,
through its involvement in the Investor Mining and Tailings Safety
Initiative, requested that the results of the report to be published on
the Sibanye-Stillwater website at
https://www.sibanyestillwater.
com/sustainability/environment/ under the Tailings storage facilities
dropdown.
There are several tailings and waste rock reclamation initiatives
ongoing across the SA operations which have a number of benefits
including reducing of the residue footprint, reducing toxicity of the
residue and beneficiating our PGMs, chrome and gold.
These hydraulically or mechanically reclaimed tailings and waste rock
dumps are treated through the various metallurgical plants (gold
plants and concentrators) for the recovery of gold, chrome and PGMs,
and re-deposited on other tailings storage facilities or in pits. The
total tonnages retreated at the SA gold and SA PGM operations are
reflected in the preceding table.
Many of the waste rock dumps at our shafts across the SA operations
are also being reclaimed as part of our concurrent rehabilitation
initiatives. Waste rock in these instances is crushed to a suitable size
fraction and used for road construction purposes, backfilling and for
construction of large dams at the operations. External parties buy waste
rock primarily for road construction including national, provincial and
local roads around the operations as well as for railway sidings.
SA gold and PGM operations non-mineral wastes
(general and hazardous waste)
We identify and where possible, prioritise research or implementation of
alternative solutions for disposal to landfill to reduce our environmental
footprint, reduce resource utilisation, thereby minimising costs. Our
strategic intent is to reduce the generation of waste, whilst engaging
in research into long-term viable options with the aim of achieving
zero waste to landfill in future. Our shaft and plants segregate wastes
into general and hazardous waste streams and further separation into
recyclable waste streams, allowing for more effective downstream
recycling and reuse opportunities.
Specialist waste contractors are used for waste collection and internal
and external waste transportation at our operations. General waste
that cannot be reused, refurbished or recycled is disposed of at
permitted municipal landfill sites. Both external general and hazardous
waste facilities that reuse, recycle or treat our waste, need to have
the relevant waste authorisations in place. In addition, we audit all
external authorised hazardous waste facilities and landfills receiving
our waste every two years.
The National Environmental Management Waste Management Act:
National Information Regulations requires that hazardous waste
generators and landfill owners are registered with the national (South
African) and regional (Gauteng) waste information systems (WIS).
The Driefontein gold operation and the SA PGM operations have
been registered accordingly, and where applicable, other sites will
be registered in 2020. The regulations highlight the importance of
accurate waste information and waste record-keeping, as is the case
for the landfills we operate.
220
Sibanye-Stillwater Integrated Report 2019
In a further waste management initiative, a focused sewage sludge
initiative began in 2018 to allow for the in-vessel composting of
sewage sludge at two of the gold operations as a pilot to treat 20
tonnes of sludge per month. The project aims to investigate the
beneficial use of sewage sludge waste that is typically sent to landfill
and classified as hazardous. Trials have commenced with the first
usable batch expected to be produced in the first half of 2020. At the
Marikana operations, sewage sludge, along with garden waste and
cow manure is being composted in windrow composting circuits, and
the compost is being used at the sewer plant areas as well as at the
tailings dams to assist with effective grassing programmes, thereby
ensuring continuous rehabilitation of the slide slopes.
We adhere to legislation as it relates to the storage, transport and
recycling, treatment and disposal of hazardous waste generated by
our operations. In anticipation of the newly promulgated prohibition
of liquid waste to landfill, in August 2019, we undertook a readiness
inspection at our hazardous landfill facilities (Holfontein, Klinkerstene
and Vlakfontein) that receive our liquid waste for disposal, to ensure
that they practice solidification treatment of liquid waste prior to
compliant landfill disposal. We currently comply with this prohibition
requirement. A number of smaller hazardous waste streams are
generated across all operations. These include among others, waste
light bulbs including fluorescent tubes, hydrocarbon wastes, lead
waste from the assay laboratory, chemical waste streams and electronic
waste. Programmes are in place at some operations to divert these
wastes from landfill for recycling and recovery opportunities. Others will
follow in 2020 and beyond. Also planned for 2020, is the development
and implementation of a waste database at all operations, to ensure
detailed collection of waste information for reporting purposes, which
will inform the development of waste targets and the execution of
action plans pertaining to waste reduction and in accordance with zero
waste to landfill philosophy.
Sampling water close to the US PGM operations
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Our largest hazardous waste streams are calcium sulphite (CaSO3)
generated by our smelter at the Marikana operations, and liquid
hazardous waste streams from our precious metal refinery in Brakpan.
CaSO3 is produced as a residue from the capture and treatment of
sulphur dioxide (SO2) emissions at the smelter and is disposed of at a
licensed waste disposal site at a cost of approximately R35 million per
annum. CaSO3 is a challenging waste stream due to its hygroscopic
nature and the volumes generated (approximately 4000t/m). Finding
alternatives to landfill has proved difficult. We however continue to
investigate alternatives be it through cleaner technology (conversion
of CaSO3 to gypsum, CaSO4) or more conservative options such as
soil amelioration. In November 2019, we installed a belt filter at the
smelter which reduces the water content of the CaSO3 by an additional
10-15%, reducing waste to landfill by this amount as well as decreasing
the salt load in the waste, reducing its toxicity.
The chemical refining processes at the PMR produce approximately
2,200 tonnes of acid and alkaline hazardous liquid waste streams
(effluent) per month. A portion of the waste stream is currently being
recycled by an acid refinery with the remaining streams treated off-site
and disposed to landfill. The stream is first blended and solidified
before disposal. The operation has been proactive in finding possible
solutions for diverting this waste from landfill. The goal is to run a
closed-loop system on these waste streams, to recover PGMs or other
beneficial metals and to reuse the substantial amount of water in this
waste back into the process plant, reducing municipal water use.
At the PMR, we have received approval for the construction and
operation of our hazardous waste incinerator, which means the ash
generated from the incineration process, rich in PGMs, will go back
into process for extraction. Until this is installed, waste streams such
as PPE contaminated with PGMS, filter cloths and mops will continue
to go to outside contractors for incineration and recovery of PGMs.
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, Phases 1 and 2 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 was completed in 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 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.
At Stillwater some 59% of tailings are used as backfill underground –
just short of the maximum achievable – while at Blitz the percentage
is between 49% and 50%.
Both Stillwater and East Boulder 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.
Work on future tailings storage facilities continued at the East
Boulder site. Stage 4 of the current facility is under construction. A
formal environmental assessment is underway for the future Stage
6 facility and a decision on the final environmental assessment is
expected in the fourth quarter of 2020. Under Montana law, an
Independent Review Panel (IRP) must review and approve all new
tailings facilities. The company was instrumental in drafting and
enacting this new law back in 2015. It requires employing the
most advanced practices and technologies available, as well as
expert review and approval of tailings facility design, operation,
maintenance, and closure in advance of construction. The US
operations IRP is made up of three internationally recognised tailings
facility engineering experts. The East Boulder Stage 6 facility is the
first in Montana to be reviewed under this process. In addition to
the Stage 6 work, the same IRP experts will begin reviewing the next
phase of tailings and waste rock disposal at both the East Boulder
and Stillwater Mines.
These activities and efforts were all completed in collaboration with
stakeholders including the Good Neighbors, regulatory agencies,
independent review panel experts, and local communities. The Good
Neighbor Agreement is helping this process run more smoothly and
efficiently, especially bearing in mind that tailings storage facilities
with a 40- to 50-year life are required.
Dust buckets monitoring surface dust close to our operations
Sibanye-Stillwater Integrated Report 2019 221
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
US OPERATIONS: TAILINGS MONITORING
EQUIPMENT
A NAVSTAR monitoring system has been installed and is now
operational at the Nye and Hertzler tailings storage facilities
to assist in remote monitoring and notification in the unlikely
event of tailings storage facility movement. The new monitoring
equipment has a GPS link capable of detecting movement
in millimetres. Data is provided and trigger points send text
messages. Survey monuments and inclinometer monitoring
have been made operational at all facilities, although the survey
monuments have been temporarily disabled while the facility
undergoes expansion. Real-time data is slated to replace the
current manual downloads in 2020.
Permitting efforts for the Blitz expansion project are nearly complete.
Minor revisions to the operating permit have been received for a
geotechnical investigation to support an expansion to the current Hertzler
tailings storage facility and the site’s waste rock dump, as well as for
relocating the holding pond for the site’s Land Application Disposal
(cropland irrigation) of treated mine water. Montana Department of
Environmental Quality is currently considering a minor revision to expand
certain structures, as well as expand the mine’s permit boundary.
Additionally, the US operations continue to pursue a long-term
gypsum management strategy. Relationships have been established
with area farmers for ongoing gypsum agricultural use and a long-
term management contract has been established with a local landfill.
Testing is taking place to see if our synthetic gypsum can be used in a
cement plant in Montana.
INCIDENT MANAGEMENT
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 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 2019, zero level 4 or 5 incidents were recorded. Five level 3
incidents were recorded at the SA operations compared with five
recorded in 2018. All incidents were reviewed and impacts closed
out. Three level 3 incidents were reported at our gold operations and
two at the SA PGM operations. The impact of these incidents can be
classified as negligible or low with a short duration.
See environmental incidents at
more detail on the level 3 and higher incidents reported during 2019.
www.sibanyestillwater.com for
US PGM OPERATIONS
The US PGM operations experienced no level 3 and 4 incidents and 64
internally reportable events during 2019, the latter being an indication
of increased diligence in reporting. All releases were immediately
cleaned up and remediated.
BIODIVERSITY AND BIOMONITORING OF RIVERS
Sibanye-Stillwater’s vision of promoting natural resources and
improving life further strongly advocates for the reduction in the
degradation of natural habitats, halting the loss of biodiversity and
protecting species on land and in water. Our management processes
contribute to the conservation of biodiversity and take integrated
approaches to land use planning, as guided by the ICMM.
One of the routine monitoring methods applied in order to
ensure the effective management of biodiversity is biomonitoring
which assesses the various potential stresses placed on the
water system and its ability to support biodiversity, particularly
in terms of macroinvertebrates (insects) and fish. The results
inform management decisions that lead to the improvement of
measures that enhance the resilience of these systems to allow
for the protection of all water users including the environment.
Detailed disclosure about these topics can be found in the
Biomonitoring of rivers and biodiversity fact sheet available at
www.sibanyestillwater.com
HERITAGE
SA operations: heritage assessments
All environmental impact assessments for project authorisation, have
for several years, included heritage assessments. Heritage sites are
identified, placed on the local operational planning databases and
mitigation measures proposed and implemented primarily where
the operations could potentially impact on these sites. The following
heritage sites have been identified at our operations.
• Beatrix – No sensitive heritage resources identified
• Burnstone – Sites of graves identified
• Driefontein – Sites of archaeological importance, graves identified
and religious sites
• Ezulwini – Sites of cultural significance and archaeological
importance identified
• Kloof – Sites of archaeological importance and graves identified
• Rand Uranium – Sites of graves identified
• Rustenburg – Sites of cultural significance, archaeological
importance and graves identified
• Kroondal – Sites of cultural significance, archaeological importance
and graves identified
• Marikana – Sites of cultural significance, archaeological
importance and graves identified
• US PGM operations – As part of the Dry Fork Waste Dump
Expansion; the East Side Waste Rock Expansion; and the Hertzler
4/5 Expansion, we have completed additional cultural resource
inventory studies in 2019 with reviews by archaeological
professionals
222
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE REHABILITATION AND CLOSURE
The strategic objective of our closure planning is to align our closure
strategy to an over-arching, sustainable, regional closure strategy,
current and pending environmental legislation as well as with socio-
economic considerations such as acceptable end land-uses by relevant
stakeholders. This entails the compilation of comprehensive closure
liability assessments, closure plans for each operation as well as
rehabilitation plans that seek to identify opportunities for concurrent
and future demolition, remediation and rehabilitation of surface areas
and infrastructure. In addition, part of our closure planning also focuses
on the identification and establishment of sustainable projects such as
the Bokamosa Ba Rona initiative on the West Rand (which entails the
imminent donation of approximately 15,000 ha of land by Sibanye-
Stillwater to the initiative and which is a mega-community project with
an agricultural focus – a so-called ‘soil-to-export’ approach).
Total closure liability for the SA operations as at 31 December 2019
(including our portion of environmental liability in joint ventures and
projects) was R10.31 billion. Of this, R5.63 billion was for the PGM
operations (inclusive of the Marikana operations and third party Pull-
and-Share Agreements) and R4.68 billion for the gold operations. The
US PGM operations have a closure liability of R6.59 billion.
In South Africa, we own 47,015 hectares of land at and around our
SA gold operations and 16,876 hectares of land at and around our
SA PGM operations.
As an integral part of the footprint reduction project, infrastructure
suitable for demolition and rehabilitation has been identified – this
is primarily redundant buildings and associated infrastructure, and
infrastructure on prolonged care and maintenance (such as shafts and
plants). At our PGM operations, R1.34 billion (23.8%) of the total
provision of R5.63 billion has been identified for potential demolition
and rehabilitation. At our gold operations, R350 million (7.4%) of the
total provision of R4.67 billion, which includes the Cooke operations,
has been identified for potential demolition and rehabilitation. The
execution of these demolition and rehabilitation projects is subject to
the finalisation of the 2020 mine plans and beyond.
Sibanye-Stillwater has encouraged the South African government to
extend the implementation date for the proposed Financial Provision
(FP) Regulations. The amendment to the FP Regulations, 2015
published on 17 January 2020, extends the period of compliance, i.e.
effectively the implementation date of the 2015 FP Regulations, as
amended, by 18 months to 19 June 2021. Some of the current draft
regulations include the potentially mandatory inclusion of 15% value-
added tax (VAT) in all closure provisions as well as the quantification
of the latent and residual liabilities. If promulgated, the addition of
a 15% VAT would add approximately R1.55 billion to our existing
closure liabilities and thus financial provisions. Sibanye-Stillwater, on
its own, and in conjunction with the Minerals Council of South Africa,
has commented extensively on the financially onerous and impractical
nature of some of the FP Regulations, with the view to influencing
Government to reconsider and appropriately amend the FP Regulations.
All the SA operations are working actively towards meeting the
June 2021 deadline, while in parallel engaging with Government
and other key stakeholders to formulate less onerous final amended
FP Regulations. The mining industry anticipates the long-awaited
amendments to the FP Regulations to be published for public review
comment during the first half of 2020.
Lestes plagiatus in southern Africa: our operating environment has a high
level of biodiversity
Shaft at our SA gold operations
Stillwater mine site at the US PGM operations
Sibanye-Stillwater Integrated Report 2019 223
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINIMISING OUR ENVIRONMENTAL IMPACT CONTINUED
SA OPERATIONS: THE USE OF 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 do require maintenance.
The ability to replicate the benefits of wetlands through artificially constructed wetlands has resulted in the implementation of several wetland
initiatives. Sibanye-Stillwater is participating in the development of artificial wetlands. The aim of these initiatives is to re-establish once functional
wetland systems that have been historically impacted. It should be noted that these wetlands do not form part of declared protected areas.
Increasingly, applications of these passive treatment solutions are becoming the preferred option for water quality management due to their
comparatively low maintenance and operational costs. Moreover, they continue to perform beyond the life of an operation.
Ezulwini wetland
• General authorisation received
• 10% of tailings waste and historic paddocks removed since November 2018
• Improvement in water quality, decreasing from 600 microgrammes per litre to 100 microgrammes per litre of uranium, as a result of storm
water improvements, drying out the site and instituting alternative discharge pathways
Driefontein rock dump number 6 wetland
• Historically impacted by tailings spills
• Authorisation for rehabilitation received and allowed to remove a downstream rock dump
• Implemented a new pipeline, flange protection measures, new bunding
• Removing tailings out of the watercourse and surrounding catchment, with rehabilitation starting second half 2020
Kloof number 1 rock dump
• The Department of Water and Sanitation required the mine to build a pollution control dam in the Leeuspruit, which would have resulted
in the desiccation of the stream and therefore the availability of water to support the ecological functioning of the system as well as the
downstream, water uses. Therefore, an alternative of a constructed wetland was proposed which would allow for the polishing of the
water quality while maintaining flows within the system
• Water with qualities not achieving the set limits will be treated to an acceptable standard to be released back into the environment and
ensure the stream continues to function
• Existing stream bed will also be rehabilitated as it is highly impacted by invasive alien species as well as historical and ongoing mining activities
Project to quantify residual and latent liabilities
US PGM operations
We operate in complex surface water catchment areas, which have
numerous water users, including our communities, farmers, other
industrial users and mining companies. Although water resources are
monitored extensively, limited information is available in terms of the
quantification of residual and latent liabilities.
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.
We have initiated a project to:
• quantify the potential liabilities associated with our mining activities
• provide recommendations for mitigation
• align the remediation approach (mitigation measures) with
regulators and other water stakeholders
The project will consider all catchments in which we operate: the quality
of our discharges, the diffuse seepage inputs, the impacts on soils in
terms of the potential for release of contaminants in different situations
and the potential influence of groundwater interactions. Prioritised areas
have been aligned to the revised FP legislation date of 19 June 2021.
224
Sibanye-Stillwater Integrated Report 2019
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 operations and its regulatory agencies.
Based on a five-year review period, the East Boulder mine review
began in 2019 while the Stillwater mine review is scheduled for 2020.
State and federal regulatory authorities initiate and complete these
reviews. The US operations assist in these reviews, provide information
and data as requested, and ultimately sign off in agreement with the
agency review and calculation.
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE 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$43.6 million.
US PGM operations: land under management and rehabilitated in 2019 (hectares)
East Boulder
Stillwater
Columbus Metallurgical Complex
Total
FUTURE FOCUS
Total and/or
permitted
Disturbed
Undisturbed
Rehabilitated/
reclaimed
134.6
432.9
82.6
650.1
102.0
359.4
13.0
474.4
32.6
73.5
69.6
175.7
20.8
218.0
0
238.8
SA OPERATIONS
• Further embed and implement our sustainability strategy, to drive a step change in environmental management and performance.
Leverage our ESG focus as well as the principles, best practices and actions associated with the ICMM, World Gold Council and related
industry codes and bodies
• Drive pioneering benchmark practice in all areas of environmental management including water, land, air, waste, heritage, biodiversity
and closure; ISO 14001 certification for the SA PGM operations by December 2020 and for the SA gold operations by December 2021
• Challenge and influence the complex legislative and law reform environment through direct and indirect participation and advocacy in
such areas as financial provision legislation and carbon tax to develop greater clarity and certainty at company and operational level
• Proactively participate in industry and Government forums and platforms to drive common environmental and sustainability agendas and
to foster closer alignment and co-operation between industry, community, and local and national government
• Comprehensive carbon footprint disclosure and reduction of our carbon footprint through implementation of emission reduction
measures. Advocate for carbon change mitigation
• Improve 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 and footprint reduction
programme at our gold and platinum operations;
• Develop a GIS database and heat map for all heritage sites at the SA operations
• Greater focus on strategic and operational waste management issues across the SA operations. These include but are not limited to
– the development and roll-out of a waste database/waste tracking system
– the completion of a waste gap audit (followed by action plans to address any gaps)
– the setting of specific, measururable, achievable, realistic and time-bound (SMART) waste reduction targets at Group and operational
level in pursuit of a zero waste-to-landfill philosophy as the endgame
• Develop and implement programmes and initiatives that would enhance and promote environmental awareness/consciousness,
stewardship and communication on environmental issues
US PGM OPERATIONS
• ISO-based environmental management systems with intent to submit for certification in 2021
• Formal stakeholder map and engagement plan
• Optimise integrated reporting system
• Widespread environmental compliance, Good Neighbor Agreement, and sustainability training at all sites
• Water treatment plant performance optimisation
• Enhance environmental incident metrics procedure and incident reduction plan
• Complete Good Neighbor Agreement Adaptive Management Plan
Sibanye-Stillwater Integrated Report 2019 225
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HARNESSING TECHNOLOGY
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
CHALLENGES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
Safety
Enabled significant risk reduction
and safety improvements through
the use of data and analytics
Adoption
Experienced low levels of
adoption for abstract or
complicated technology themes
Innovation culture/
culture
Developed an end-to-end idea
and innovation management
framework to enable a culture of
innovation
Intelligence
Delivered bottom line value
through various aggregation,
visualisation and intelligence
platforms
Measurement
Difficulty in understanding
true bottom line benefit
associated with technology and
innovation initiatives
Capability
Identified skills and capability
building requirements to enable
rapid adoption of technology
Technology adoption and
innovation in mining is an
important aspect of our drive
to deliver value by improving
efficiencies and productivity
within our organisation.
Sibanye-Stillwater has transformed its research
and development focus, corporate and
regional strategies and internal and external
initiatives, to keep pace with the growth and
transformation of the Group. Technology and
innovation is contained within the Group
Technical function and is responsible for
implementing a comprehensive and cohesive
global technology and innovation strategy.
Robotic sampling at our Columbus metallurgical facility at the US PGM operations
226
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
The technology and innovation strategy has been fully aligned with the safe production strategy:
TECHNOLOGY AND INNOVATION STRATEGIC FRAMEWORK
OUR VALUES
Commitment
Accountability
Respect
Enabling
Safety
ENGAGED LEADERSHIP
ENABLED ENVIRONMENT
Reducing administrative load and
providing financial resources to execute
initiatives effectively, ensuring effective
allocation of provisions. Centralised
partnership and intellectual property
(IP) management
Additional execution resources
Financial resources
Thought leadership
Internal/external partnership
and IP management
EMPOWERED PEOPLE
Removing perceived risk of failure
and consequences by celebrating
failures and marketing successes and
sustaining results from initiatives
Transparency
and shared learning
Marketing of successes
Celebration of failures
FIT-FOR-PURPOSE
SYSTEMS
Creating a suitable platform for
innovation management that allows
for registration, prioritisation,
resource allocation, execution and
sustaining innovation
Idea and innovation
management platform
External capacity for bespoke
initiatives and development
The technology and innovation strategy
represents a people centred approach
that leverages the broader organisation
to achieve technology adoption success.
The focus is on value creation through
three key tiers, namely:
The
short-term
executional
tier
The
medium-term
tactical tier
The
long-term
strategic
tier
Focuses on implementing
quick-win initiatives
as well as continuous
improvement programmes
that are supplemented by
technology.
Operates from a regional or commodity-specific perspective. This tier
manages programmes that form part of the strategic tier’s portfolio of initiatives,
establishes centres of excellence for themes that have global relevance or adopts
technologies that have been proven in other regional or commodity specific
centres of excellence. The tactical tier is also 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.
Operates from a global perspective and
manages the consolidation of long-
term internal initiatives and strategies
that have global relevance, such as
digital transformation. The strategic tier is
also responsible for external research and
development initiatives and partnerships
with research institutions.
Sibanye-Stillwater Integrated Report 2019 227
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HARNESSING TECHNOLOGY CONTINUED
DIGITAL TRANSFORMATION
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.
Driving value through digital
Digital transformation is a unique and key strategic technology pillar
that is applicable to all aspects of the Group. As such, a dedicated
functional and governing executive sub-committee, comprised of
relevant representation from Group technical, shared services, the
SA and US operations, was established. The digital transformation
executive-committee supports the digital transformation initiative and
is resourced with an agile, multi-disciplinary team, sponsored by the
Group executive committee, that focuses on value realisation across
the mining value chain and ancillary support functions.
During the establishment of the digital transformation initiative,
it became apparent that there was significant value in leveraging
external expertise to fast track ideation and prioritisation of key
strategic aspects of the initiative. Consequently, Sibanye-Stillwater
established an advisory panel of globally renowned disruptors from
various industries and institutions. The value contribution of the
advisory committee was immediate, with members accelerating our
internal understanding.
Key to our digital transformation strategy, and in preparation for the
fourth industrial revolution, we are investing significantly in establishing
a suitable base with which to leverage the concept of big data, as well
as integrate the various technologies associated with the revolution.
To understand and demonstrate the achievable value creation
through digital transformation, we have partnered with South African
company, DataProphet, to implement an artificial intelligence (AI)
powered plant optimisation system. AI is used to extract value from
historical data and optimise manufacturing and mineral processing
plants. On processing the data, the solution creates a learnt digital twin
of the plant and can deduce the entire process from the equivalent of
228
Sibanye-Stillwater Integrated Report 2019
hundreds of years’ worth of institutional knowledge embedded in the
data. Optimum operating patterns are identified from the historical
data and used to prescribe actions based on the current operating
characteristics of the plant. These prescriptions are provided within the
context of a systemwide view which takes into consideration upstream
and downstream processes. The result is a reduction in variation and
improved plant metrics through optimised and unified operations.
Preliminary indications suggest that, when applied, a potential
recovery change of between 1.5% and 3% is achievable with no
significant amendments to other quality parameters. This translates to a
commensurate improvement of ounces produced through treatment of
the same volume of mined ore.
INNOVATION CULTURE FRAMEWORK
Concurrently with, and partly as an enabler to, our technology and
innovation strategy, we are building an innovation culture framework,
supported by an idea and innovation management process, with the
aim of establishing a way for people’s ideas to be heard, enhanced
through collaboration with the broader organisation, elevated and
funded and thus benefit the business. These ideas are not limited to
technology and digitalisation but can also be general innovation and
new ways of working.
The framework’s idea and innovation management process is
designed to be a collaborative and democratic process that empowers
and enables the broader organisation through the use of fit-for-
purpose systems. Implementation of the idea and innovation
management platform began in early 2020, starting with integrated
shared services, to be followed by the operations. The process is
designed to encapsulate both bottom-up innovation as well as
top-down direction in the form of innovation challenges which
are designed by various levels of management, aligned with key
challenges and strategic goals and posed to the broader organisation.
Combined cultural and technological experiments have been conducted
to see if, once the barriers to entry into the technological arena have
been removed, particularly costs and administration, teams would
take up the innovation challenge. Outcomes of the experiments have
been positive, with large interdisciplinary teams working together and
implementing concepts that are valuable to the company.
KEY TECHNOLOGY INITIATIVES
As part of the digital transformation initiative, the team identified
significant opportunity in increasing overall equipment effectiveness
(OEE) by using information that resides on numerous digital systems
installed on fixed and mobile machinery. Machine telemetry and
qualitative data are gathered and routed to a central database where
this is aggregated and analysed. Through various forms of analysis
and modelling, the effectiveness and associated productivity of a
specific, or sets of, machinery, can be determined and potential
improvement opportunities identified. In the case of fixed plant
machinery, new operating and maintenance paradigms can be
established that improve performance and reduce cost. In the
mining environment, the analysis can be used to optimise extraction
methodologies and processes, optimise logistics, increase asset
utilisation, reduce cost and improve production. In both instances,
potential changes can be assessed prior to implementation with a
relatively high level of confidence, reducing the risk that significant
changes may impose on an otherwise stable process.
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Three separate initiatives were implemented in 2019, the primary objectives of which were to understand and demonstrate the practicality,
applicability and potential value of the concept and enabling technology. The intended focus areas and initiatives are as follows:
At the SA gold’s Kloof operation
At the SA gold Driefontein operation
1. OVERALL EQUIPMENT EFFECTIVENESS:
Visualising key productivity and telemetry data in order to
enable improved utilisation and effectiveness of trackless
mobile machinery and production improvements in a
mechanised mining environment.
2. LOGISTICAL OPTIMISATION:
Using telemetry and behavioural data to optimise the use and
improve the safety of locomotives within the gold segment.
3. OPTIMISED METALLURGICAL PROCESSING:
In partnership with the aforementioned, DataProphet,
improving plant production and quality through the use
of historical data and deep learning to extrapolate revised
operating recipes and models based on historical positively
anomalous performance.
All three initiatives were successfully implemented, yielding
extremely positive results and initial analysis respectively:
1. Potential machine use and associated production
improvement potential of 8%-10% through the aggregation
and visualisation of telemetry and production data on
mechanised mining machinery.
2. Behavioural interventions resulted in further reductions in
locomotive related injuries (about 70% fewer in 2018 and a
further 25% fewer in 2019) as well as a sustained locomotive
related fatality free period of two years, building on past
enabling interventions that were implemented in 2018. Vehicle
telemetry data aggregation established and stabilised enabling
further analysis into fleet and maintenance optimisation.
3. Potential concentration recovery improvement of 1.5%-3%
without compromising grade in a 4E PGM concentrator.
RESEARCH AND DEVELOPMENT PARTNERSHIPS
Mandela Mining Precinct
The Mandela Mining Precinct (MMP), an outcome of the government-
supported Mining Phakisa process, and previously referred to as the
Mining Precinct’s Innovation Hub, was opened in September 2018.
The MMP creates a space for researchers from various institutions and
organisations to collaborate and work together. 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.
Sibanye-Stillwater participates in the MMP’s six steering committees,
which meet quarterly and the innovation team, which meets three
times a year.
Sibanye-Stillwater Digital Mining Laboratory
The Sibanye-Stillwater and the University of the Witwatersrand
(Wits) Mining Institute’s (WMI) Digital Mining Laboratory
(DigiMine) was launched in 2018. DigiMine is a 21st century
state-of-the-art mining laboratory and post graduate research
entity. The aim of the laboratory is to make mining safer and
more sustainable using digital technologies.
The DigiMine collaborative effort between the Wits Mining Institute
and Sibanye-Stillwater is funded under two separate agreements
of R12.5 million (2015 – 2017) and R15 million (2018 – 2020)
respectively. The funding supports fundamental and applied
research efforts within DigiMine and provides for student support
and infrastructure upgrades in the Wits Mining Institute.
To date, the WMI has given vacation work opportunities to 37
undergraduate students, 13 postgraduate students graduated
with a Master’s degree, and five PhD candidates graduated with a
doctorate. In addition, 32 journal and conference research articles
were published – many of which are international. Due to this high
impact, WMI staff and students receive regular invitations to speak
and share ideas on leading practices for 21st-century mining. This is
more than a significant contribution to Professor Habib’s objective
to increase the University’s research output and would not have
been possible without the support of Sibanye-Stillwater.
Sibanye-Stillwater is providing DigiMine with an additional
R10 million in funding annually from 2019 to 2021, over and
above an original commitment to the project.
Sibanye-Stillwater Integrated Report 2019 229
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION HARNESSING TECHNOLOGY CONTINUED
Annual funding under this agreement is being directed to five
core focus areas, progress in which is described below:
OUTLOOK AND FUTURE FOCUS FOR TECHNOLOGY
Sibanye-Stillwater’s key focus in the near term will be the following:
Progress in 2019
1. Implement, embed and sustain the innovation culture
framework and supporting infrastructure in order to enhance
organisational ability to adapt to, and, adopt disruptive and
value enhancing technology at scale as well as capitalise on the
collective intelligence of the organisation.
2. Embed, sustain and expand on initiatives that demonstrated
value during 2019.
3. Continue research and development in order to understand
emerging technology themes and trends and pursue new
opportunities.
4. Continue to support partner entities and institutions and
develop new relationships and partnerships.
Our medium term focus will be on further developing our
technology and innovation strategy to include new research,
development and implementation models that enhance the
sustainability of the initiative as well as the broader organisation.
INFORMATION AND COMMUNICATION TECHNOLOGY
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 has increased.
governance page 78 for more information on the governance and
management of ICT.
See Corporate
In 2019, the integration of the US operations ICT infrastructure
into the corporate ICT architecture was completed and we are
now operating as one Group function. The ICT Group structure
was redefined to prioritise core focus on digital enablement.
ICT established the Digital Innovation Hub, that aims to align
technology with our business goals, enabling a contribution to
Sibanye-Stillwater’s strategic objectives.
At the DigiMine laboratory at Wits in Johannesburg
DigiMine 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
Identified, scoped and workshopped
three specific projects, which focus
on applying digital technology and
analytics to conventional problems like
rock mass management, ventilation,
tailings. A review of a further three
projects is ongoing.
Integration has taken place with the
school of geo-science (Wits). We are
establishing a database of all seismic
events over an extended period.
Deep learning will be applied to that
information to see if any patterns can
be identified.
Enhancing the
sustainability of the
WMI and DigiMine
A fund has been established into
which R1 million is deposited per
annum.
Enhancing the
delivery structure
for the research and
development agenda
The creation of the
Sibanye-Stillwater
Health and Safety
DNA project
A head of DigiMine has been
appointed, and administrative help
engaged.
Planning was completed and a
pilot site identified. Deployment
commenced in the last quarter
of 2019. Different methods of
onboarding have been examined, with
the aim of embedding safety from the
day of engagement. The development
of phone applications is taking place
as part of investigations into how best
to deliver safety training material.
Establishing training facilities at University of
Johannesburg
Sibanye-Stillwater has also made the same two investments into
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. A virtual reality training simulator is being
built that will support the development of 21st century mining
graduates by giving them a real-world experience without the
need to go to a mine.
230
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE We established the Sibanye-Stillwater: Marikana integration
programme to execute identified synergies and opportunities,
with integration of the Marikana ICT landscape prioritised for
completion by the end of 2020.
The Group strategy to help standardise operations and financials
within Sibanye-Stillwater was developed during 2019, and the
Marikana SAP integration strategy approved by the Integration
Steering Committee. The strategic aim of the ERP project is to
combine our current SAP platforms into one integrated system.
As an existing SAP customer, we will leverage our investment and
produce a consolidated SAP environment for the SA operations by
July 2020. The process to gain insight into the US operations ERP
platform was initiated and an analysis of the JD Edwards software
platform was performed. ERP platform alignment with the aim of
creating one integrated business platform is set to start in June 2020.
Sibanye-Stillwater has adopted a hybrid cloud model which
is best suited to our operating model. The ICT infrastructure
migration to a centrally hosted data centre facility is set for
completion by July 2020. This central facility will host the core of
the Sibanye-Stillwater business systems and 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).
CYBER SECURITY
Security of our ICT systems, network and information, which apply
innovative technology to enhance operational and knowledge
performance, is essential. We developed a cybersecurity framework
to govern the security regulations as required.
Our service efficiency centre established to monitor and respond
to threats to the Group’s ICT system on a 24/7 basis continued this
role during 2019. We successfully prevented major security threats
and assisted with the investigation where attempts were made.
Internal and external vulnerability tests provide feedback on
our ability to prevent and remedy hacking attacks, and in 2019
showed that we maintain a high level of cyber security. We
initiated the cyber security training and awareness platform,
which has been very successful in educating our user community
and thus minimising cyber attacks.
The disaster recovery testing for critical and core business
applications is performed on an annual basis, and application
recovery plans are then documented. This process is then
followed by a business impact assessment of the Group’s essential
information assets necessitating protection, which includes
reviews of recovery procedures and security controls. Plans are in
place to replicate applications with critical and high availability
requirements at alternative data centres throughout the Group.
Outlook and plans for technology, innovation and
ICT for 2020
• As part of the development of our Fourth Industrial
Revolution roadmap, we will be investigating ways to
improve the velocity and veracity of our data, using, for
instance, Kiosk data collection. This will also complement the
idea management process and enable the use of currently
unused data in pursuit of accessing leading indicators
• Increased focus on the integration activities with our
Marikana operations will remain a key area for 2020
• The execution of our ERP One project is key to the business
and needs to be executed successfully
• ICT footprint reduction at our PGM operations in the North
West will receive priority
• The execution of our SAP project for the group. This includes
the implementation of a single SAP instance for our SA
operations which is set for completion in July 2020
• The successful implementation and conversion of our
Marikana operations HR payroll is in progress and set for
completion at the end of February 2020
• Automation opportunities will receive priority. We have
restructured the operating model with key focus around
digital innovation. ICT will drive continuous improvement
and create exciting change in the way we traditionally
performed business functions. New tech trends, like IoT,
IIoT, edge computing and automation will be introduced
A student working at the Wits DigiMine
Sibanye-Stillwater Integrated Report 2019 231
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINERAL RESOURCES AND RESERVES – A SUMMARY
Membership
Better
lives
EMPLOYEES
Fair
market
access
HOW WE DID IN 2019
Upliftment
ORGANISED
LABOUR
SUPPLIERS
Assured
product
SUCCESSES
COMMUNITIES
CUSTOMERS
Socio-
economic
stability
SHAREHOLDERS
COMPANY
CARES
about our...
GOVERNMENT
Economic
value
ENVIRONMENT
Total
returns
Clean
water/
air/
land
Safety,
health and
wellness
Costs
Quality
Volume
90%
increase in Group PGM
Mineral Resources to
389Moz
20%
increase in Group PGM
Mineral Reserves to
55.1Moz
Drilling at Blitz yielded
2.0Moz of additional
Mineral Reserves
CHALLENGES
Intricacy of integrating
and re-evaluating the
Marikana assets resulted
in a 22.1Moz decrease
in Mineral Reserves
(compared to Lonmin in
2018) due to a lack of
supporting feasibility
studies
Complexity of extending
the life of the SA gold
operations beyond their
original anticipated
life-span, by converting
Mineral Resources to
Mineral Reserves through
innovative infrastructure
optimisation and
integration option
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 2019 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 Mineral Resources and Mineral
Reserves acquired during 2019 as part of the Lonmin acquisition. The
Mineral Resources and Mineral Reserves are compared to the last full
declaration made as at 31 December 2018, 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 2019, which contains a comprehensive review
of Mineral Resources and Mineral Reserves as at 31 December 2019,
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 Resources and Mineral
Reserves is available online at
www.sibanyestillwater.com.
232
Sibanye-Stillwater Integrated Report 2019
The Sibanye-Stillwater Group has extensive Mineral Reserves and
Resources, the majority of which are precious metals and located in
the Americas and Southern Africa.
Precious Metals Refinery in Brakpan, SA
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Mineral Reserves
2019: 70Moz
2018: 63Moz
Mineral Resources
2019: 493Moz
2018: 309Moz
3
40
38
%
7
12
DRDGOLD
SA PGM projects
32
7
4
%
16
41
1
18
16
%
44
2
10
9
8
6
31 %
26
3
10
16
US PGM operations
SA PGM operations
SA gold operations
Gold projects
Americas projects (PGM and Au)
• 90% increase in the total platinum group metals (PGM) Mineral Resources to 389.0Moz and a 20% increase in the Group’s PGM
Mineral Reserves to 55.1Moz, primarily due to the inclusion of the Marikana (previously Lonmin) assets, acquired in June 2019
• Ongoing successful definition drilling at the Blitz project, Stillwater Mine, at the United States (US) PGM operations yielded 2.0Moz of
additional Mineral Reserves
• Gold Mineral Resources at the South African (SA) gold operations increased by 52% primarily due to a reduction in costs associated
with the Kloof integration project, facilitating a decrease in cut-off grades
• Exploration projects’ advanced through the establishment of key partnerships with Generation Mining Ltd and Wallbridge Ltd
The Group complies with both the JSE and the US Securities and Exchange Commission (SEC) guidelines on commodity prices used in the
estimation of Mineral Reserves at all managed operations and projects. An average exchange rate of R14.50/US$ and the commodity prices
illustrated below were used in the estimation process:
Precious metals
Gold
Platinum
Palladium
Rhodium
Iridium
Ruthenium
Base metals
Nickel
Copper
Cobalt
Uranium oxide (U3O8) 1
Chromium oxide (Cr2O3) 2 3
1,2 Long term contract price
3 42% concentrate
31-Dec-19
R/oz
18,850
12,862
16,284
R/kg
610,000
413,506
523,526
US$/oz
1,238
959
819
52,200
1,678,267
1,180
US$/oz
1,300
887
1,123
3,600
1,247
200
18,082
2,900
US$/lb
US$/tonne
6.33
3.14
13,955
6,923
581,333
93,237
R/tonne
183,454
91,133
814
102
US$/lb
US$/tonne
4.99
2.68
11,009
5,913
31-Dec-18
R/oz
16,796
12,994
11,097
15,989
11,030
1,382
R/kg
540,000
417,781
356,791
514,058
354,613
44,436
R/tonne
149,172
80,121
31-Dec-19
31-Dec-18
US$/lb
US$/tonne
R/tonne
US$/lb
US$/tonne
R/tonne
28.00
32.00
0.07
61,729
895,076
70,548
1,022,944
165
2,393
20.00
37.00
0.09
44,092
597,441
81,569
1,105,266
207
2,804
Sibanye-Stillwater Integrated Report 2019 233
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
MINERAL RESOURCES AND RESERVES – A SUMMARY CONTINUED
US PGM OPERATIONS
SA PGM OPERATIONS
Total 2E PGM Mineral Resources estimated at 81.1Moz, an increase
of 2% from 31 December 2018. Mineral Resources remain largely
unchanged with mining depletions offset by Mineral Resource growth
primarily at the Blitz section of the Stillwater mine.
Total 2E PGM Mineral Reserves estimated at 26.9Moz, an increase
of 5% from 31 December 2018. The growth in Mineral Reserves
was driven by continued positive drilling results at the Blitz section
of the Stillwater Mine. Ongoing external audits by independent
parties have noted that Mineral Reserve tonnages may be marginally
understated and grades marginally overstated due to the addition of
unplanned mineralised dilution during stoping. This is not deemed
to have a material impact on estimated Mineral Reserve ounces and
further definition of unplanned dilution is currently being investigated
for inclusion in future Mineral Reserve estimates, including the
implementation of scanning technology in stoping operations.
Total estimated 4E PGM Mineral Resources increased to 218.Moz
(+127%) as compared to 31 December 2018, primarily due to the
inclusion of 124.3Moz attributable to the Marikana operation.
Total 4E PGM Mineral Reserves were estimated at 28.2Moz, inclusive
of 9.2Moz attributable to the Marikana operation, an increase of
38% from 31 December 2018.
A decrease in Mineral Reserves of 1.4Moz was recorded at the
Rustenburg, Kroondal and Mimosa operations, primarily as a result of
depletion of 1.6Moz from mining activities during 2019, partly offset
by 0.2Moz increase due to the latest life of mine scheduling.
A thorough review of the historic (Sept 2018) 4E PGM Mineral
Reserve estimate at the Marikana Operations, post the takeover of
these assets by Sibanye-Stillwater in June 2019, resulted in a decrease
of 22.1Moz primarily due to:
US PGM operations – Mineral Reserve reconciliation
• Depletion of 1.2Moz from mining activities during 2019 (15
2E PGM (Moz)
months Oct 2018 to Dec 2019)
25.6
(0.7)
1.7
0.3
26.9
• Reduction of 1.1Moz due to an updated geological interpretation
influencing design and scheduling
• Reduction of 1.5Moz due to the application of the economic
evaluation process
• Removal of Mineral Reserves of 11.8Moz from operations on Care
and Maintenance without the requisite feasibility studies in line
with Sibanye-Stillwater’s policy
• Removal of Mineral Reserves of 11.7Moz from projects below
infrastructure, which are not included in the life of mine
The decrease was partially offset by:
• An addition of 0.3Moz included under the Marikana Mineral
Reserve estimate identified as a synergistic benefit
• Sibanye-Stillwater reporting reserve estimates on an attributable
basis of 95%, increasing the total reported attributable Mineral
Reserves by 4.9Moz in line with Group policy
Feasibility studies are currently being conducted on selected projects
to confirm economic viability at current economic parameters, which
may positively affect future Mineral Reserve estimates
Factors
31 December 2018
Depletion during 2017
Area inclusions/exclusions1
Geological interpretation
31 December 2019
1 Expansion in the Blitz project area
Projects in the Americas
Total 2E PGM Mineral Resources decrease by 22% to 3.1Moz, principally
as a result of the revised attributable interest in the Marathon Project.
During 2019, Sibanye-Stillwater concluded an agreement with
Generation Mining Limited (Gen Mining) through which Gen Mining
acquired a 51% interest in the Marathon project and formed an
unincorporated joint venture with Stillwater Canada Inc., in exchange for
a cash consideration of 3.0 million Canadian dollars (CAD) and a 12.9%
equity interest in Gen Mining. Gen Mining has an option to earn up to
an 80% interest through spending of CAD$10 million and preparing
a Preliminary Economic Assessment within four years of the property
acquisition date marked as July 11, 2019.
The PGM Mineral Resources for the Denison PGM exploration project
are also included for the first time, adding 0.3Moz. Denison project
is a PGM exploration project on the Sudbury Igneous Complex (SIC),
approximately 30km to the west southwest of the town of Sudbury.
During 2019, Sibanye-Stillwater acquired the entire shareholding in
Lonmin PLC, including the Denison project, which was 100% held
by Loncan, a subsidiary of Lonmin. During 2019, Loncan entered
into a binding agreement with Wallbridge Mining whereby Loncan
has appointed Wallbridge as the operator of the Revised Denison
Property to raise the necessary funding, implement the business plan
and manage the daily operations of Loncan. Loncan has at the end
of October 2019 issued Wallbridge with 20% of Loncan (Loncan
shareholding is currently 80% Lonmin and 20% Wallbridge).
Total Gold Mineral Resources of 6.6Moz, and total Copper Mineral
Resources of 18,711.5Mlb, remained stable, with a minor (<1%)
change in copper Mineral Resources due to the revised attributable
interest at Marathon.
234
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SA PGM operations – Mineral Reserve reconciliation
Factors
4E PGM (Moz)
31 December 2018 (excl. Marikana)
Depletion
Geological interpretation 1
Economic parameters
Modifying factors 1
31 December 2019 (excl. Marikana)
Marikana (30 September 2018)
Attributable adjustment to 95.25%6
Depletion
Area inclusions/exclusions 2,3
Geological interpretation 4
Economic parameters 5
Modifying factors
Marikana (31 December 2019)
Total (31 December 2019)
20.4
(1.6)
0.01
0.02
0.1
19.0
31.2
4.9
(1.2)
(23.2)
(1.1)
(1.5)
(0.05)
9.2
28.2
1 Updates in geological interpretations and modifying factors
2 Removal of Mineral Reserves from projects and operations placed on
These decreases were partially offset by improvements in the historical
modifying factors at Driefontein and Kloof, which added 0.1Moz to
the Mineral Reserve. The extension of the Beatrix 4 Shaft Life of Mine
(LoM) due to its continued profitability together with some additions
at Driefontein 1 Shaft, increased the Mineral Reserve by 0.3Moz.
SA gold operations – Mineral Reserve reconciliation
Factors
31 December 2018
Depletion
Area inclusions/exclusions 1
Geological interpretation 2
Estimation methodology 3
Economic parameters 4
Modifying factors 5
31 December 2019
Gold (Moz)
12.1
(0.8)
0.3
(0.2)
(0.3)
(0.2)
0.1
10.9
1 Beatrix 4 Shaft LoM extended, Driefontein 1 Shaft inclusions, Kloof 4
Shaft exclusions, DRDGOLD changes
2 Kloof 8 Shaft sub-crop position changed, Driefontein 5 Shaft structural
complexities in Overbank Area
3 Driefontein CLR changes in Overbank Area, Kloof VCR changes in 4 Shaft
4 Surface unpay exclusions, Driefontein 5 Shaft unpay exclusions
Care and Maintenance and below infrastructure
5 Improvement in the MCF at Driefontein and Kloof
SA gold projects
Total gold Mineral Resources decreased by 27% to 46.5 Moz. The
increase was primarily due to the exclusion of the attributable portion
of the DRDGOLD underground Mineral Resource at ERPM, following
the sale of mining rights and all permits and licences relating thereto
of the underground workings, resulting in a decrease of 14.8Moz.
The other material impact was at the Kloof Below Infrastructure (BI)
Mineral Resources, which decreased by 4Moz due to an update in the
estimation model. The estimation domains were adjusted in line with
changes in the facies for the EBA area, as well as constraining the
estimate in the areas with a lack of borehole information by using the
Global Mean for simple kriging.
In January 2020, Sibanye-Stillwater exercised its option to increase its
shareholding in DRDGold to 50.1%. This increase in shareholding will
positively impact the Company’s attributable Gold Mineral Resources
and Mineral Reserves in future reporting periods.
The total projects Gold Mineral Reserve of 4.5Moz was unchanged.
SA uranium operations and projects
Total U3O8 Mineral Resource remained unchanged at 78.7Mlb.
3 Benefit associated with synergies realised between shaft boundaries
4 Increases in geological loss with latest interpretation
5 Removal of sub-economic Mineral Reserves at the end of LoM due to
tail cutting
6 Mineral Reserves declared at 95.25% attributable in line with Group
methodology
SA PGM projects
Total 4E PGM Mineral Resources were estimated at 86.8Moz, an
increase of 256%, inclusive of Akanani and Limpopo (acquired as part
of the Lonmin assets), which added 62.7Moz.
SA gold operations
Mineral Resources, estimated at 51.5Moz, increased by 17.6Moz
(52%) largely due to a change in the estimation process at the
existing gold operations, especially Kloof, where the variance
amounted to an additional 15.2Moz.
Mineral Reserves, estimated at 10.9Moz, declined by 1.2Moz (10%)
due to the following:
• Depletion from mining activities during 2019 amounted to 0.8Moz
• Geological structural complexities at Driefontein 5 Shaft in the
overbank area as well as changes in the Kloof Reef (KR) sub crop
position at Kloof 8 Shaft, resulted in a drop of 0.2Moz
• A change in the estimation methodology, specifically at Driefontein
5 Shaft on the Carbon Leader Reef (CLR); and Kloof 4 Shaft on
the Ventersdorp Contact Reef (VCR), which reduced the Mineral
Reserve by 0.3Moz
• Un-economic exclusions at Driefontein 5 Shaft, and to a lesser
extent, low grade surface rock dump exclusions, which resulted in a
reduction of 0.2Moz
Sibanye-Stillwater Integrated Report 2019 235
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINERAL RESOURCES AND RESERVES – A 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 in consideration of the SEC
Industry Guide 7, which is aligned with the guiding principles of SOX.
Recent amendments adopted by the SEC to modernise the property
disclosure requirements for mining registrations, which has not come
into effect fully yet, aligns closely with the requirements under the
JSE and SAMREC, and any non-compliance to SEC Industry Guide
7 is therefore considered immaterial. The Altar, Marathon and Rio
Grande Mineral Resources were originally compiled under NI 43-101
guidelines but are deemed to be SAMREC compliant.
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 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. Mineral Resources and
Mineral Reserves are only stated for properties over which mineral right
licences have been granted and are valid; or where there are no reasons
to believe that renewal applications would not be granted.
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 2019.
COMPETENT PERSONS
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
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 is a full-time, permanent employee of the Group and gave
his consent for the disclosure of the 2019 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 32 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
Constantia Office Park, Cnr 14th Avenue & Hendrik Potgieter Road,
Bridgeview House, Ground Floor (Lakeview Avenue), Weltevreden
Park, 1709
Andrew is a full-time, permanent employee of the Group, and gave
his consent for the disclosure of the 2019 Mineral Resource and
Mineral Reserve Estimates. Andrew (MSc [Mining Eng]) is registered
with SAIMM (705060) and has 35 years’ experience relative to the
type and style of mineral deposit under consideration.
For the Americas projects Mineral Resource estimation, the competent
persons are Stanford Foy (Altar and Rio Grande) and Rodney N
Thomas (Marathon), who gave their consent for the disclosure of
the 2019 Mineral Resources and Mineral Reserves Statement. Stan
is registered with the Society for Mining, Metallurgy and Exploration
Inc. (4140727RM) and has 28 years’ experience relative to the type
and style of mineral deposit under consideration. Rodney is registered
with the Society for Professional Geoscientists (Ontario) and has 40
years’ mineral industry experience, including several years relative to
the type and style of mineral deposit under consideration. Stan is a
former Sibanye-Stillwater employee, a current full-time employee of
Aldebaran Resources Inc. and a consultant to Sibanye-Stillwater and
can be contacted at 38 Bannock Cir. #1449, Red Lodge, MT 59068
USA. Rodney is a full-time employee of, and the designated Qualified
Person for, Generation Mining Limited and can be contacted at First
Canadian Place Suite 7010 – 100 King Street West, P.O. Box 70,
Toronto, ON, Canada M5X 1B1.
The 38.05% attributable portion (as at 31 December 2019) of the
DRDGOLD current surface tailings operations including the ERGO and
FWGR operations. For this attributable portion of the DRD Mineral
Resources and Mineral Reserves, the company was reliant on the
external, non-related competent persons of DRDGOLD as follows:
Brent is a consultant to the Group and gave his consent for the disclosure
of the 2019 Mineral Resources and Mineral Reserves Statement. Brent
(BSc [Mining Eng]) is registered with the Mining and Metallurgical Society
of America (01363QP) and has 24 years’ experience relative to the type
and style of mineral deposit under consideration.
The Mineral Resources for the ERGO surface operations are based
on depletion (up to December 2019) and the Competent Person
designated in terms of SAMREC is Mr M Mudau, MSc Eng, Pr.
Sci. Nat., the Resource Geology Manager at the RVN Group. The
Competent Person designated in terms of SAMREC who takes
236
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE responsibility for the reporting of the surface Mineral Reserves, also based on depletion up to December 2019, is Professor S Rupprecht,
Principal Mining Engineer of the RVN Group. The Competent Person designated in terms of SAMREC who takes responsibility for the reporting
of the Mineral Reserves for the Far West Gold Recoveries operation, also based on depletion up to December 2019, is Mr Vaughn Duke of
Sound Mining Proprietary Limited. They all gave consent for the disclosure of the 2019 Mineral Resources and Mineral Reserves Statement
The company has the written confirmation from the lead competent persons that the information disclosed in the Mineral Resources and
Mineral Reserves Report supplement are compliant with the SAMREC Code and, where applicable, the relevant Section 12 and Table 1
requirements and that it may be published in the form and context in which it was intended.
US 2E PGM : Classified Mineral Resources and Mineral Reserves estimate as at 31 December 2019
Mineral Resources
2019
Grade
(g/t)
2E PGM
(Moz)
Tonnes
(Mt)
OPERATIONS
Underground
Stillwater
Measured
Indicated
Inferred
Total
East Boulder
Measured
Indicated
Inferred
Total
5.6
31.3
48.1
85.0
3.8
26.2
37.9
67.9
Underground – total
152.9
PROJECTS
Marathon
Measured
Indicated
Inferred
Total
Denison
Measured
Indicated
Inferred
Total
Project - Total
57.4
65.6
15.3
138.3
0.3
0.01
0.3
138.6
2018 OPERATIONS
2019
2018
Mineral Reserves
2E PGM
(Moz) Underground
Stillwater
3.499
3.214 Proved
17.993
15.738 Probable
26.706
26.877
Tonnes
(Mt)
Grade
(g/t)
2E PGM
(Moz)
2E PGM
(Moz)
3.8
23.0
19.2
2.326
2.123
19.5
14.390
12.634
48.199
45.829 Total
26.8
19.4
16.716
14.756
East Boulder
1.792
1.849 Proved
12.463
13.149 Probable
18.621
19.033
32.876
34.031 Total
81.074
79.860 Underground – total
2.7
18.9
21.5
48.3
14.4
14.7
1.232
8.935
1.342
9.515
14.7
10.167
10.858
17.3
26.883
25.614
PROJECTS
Marathon
2.693
1.290
Indicated
0.001
Inferred
3.984 Total
Denison
Total
Project - Total
1.562
1.237
0.238
3.037
0.057
0.001
0.058
3.095
19.5
17.9
17.3
17.6
14.6
14.8
15.3
15.1
16.5
0.8
0.6
0.5
0.7
5.9
2.9
5.9
0.7
OPERATIONS AND PROJECTS
OPERATIONS AND PROJECTS
TOTAL
291.6
9.0
84.169
83.842 TOTAL
48.3
17.3
26.883
25.614
Sibanye-Stillwater Integrated Report 2019 237
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION MINERAL RESOURCES AND RESERVES – A SUMMARY CONTINUED
Classified Americas projects Gold Mineral Resource and Mineral Reserve estimate as at 31 December 2019
Mineral Reserves
2019
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
2018
Gold
(Moz)
PROJECTS
Altar
Measured
Indicated
Inferred
Total
Rio Grande
Measured
Indicated
Inferred
Total
Tonnes
(Mt)
1,005.9
1,051.5
556.5
2,613.9
14.1
8.2
22.3
Projects – total
2,636.3
Mineral Resources
2019
Grade
(g/t)
0.1
0.1
0.1
0.1
0.4
0.3
0.3
0.1
2018 PROJECTS
Gold
(Moz)
Gold
(Moz)
2.981
2.253
1.087
6.321
0.162
0.074
0.236
6.558
2.981 Proved
2.253 Probable
1.087
6.321 Total
Rio Grande
Proved
0.162 Probable
0.074
0.237 Total
6.558 Projects – total
Classified Americas projects Copper Mineral Resource and Mineral Reserve statement as at 31 December 2019
Mineral Resources
Mineral Reserves
2019
Sulphide
copper
grade
(%)
2018 PROJECTS
Sulphide
copper
(Mlb)
Copper
(Mlb)
Altar
2019
Sulphide
copper
grade
(g/t)
Tonnes
(Mt)
2018
Sulphide
copper
(Mlb)
Sulphide
copper
(Mlb))
7,458.0
7,053.0
3,420.0
0.34
0.30
0.28
0.31 17,931.0 17,931.0 Total
7,458.0 Proved
7,053.0 Probable
3,420.0
Rio Grande
Proved
0.30
0.23
0.27
0.20
0.21
0.23
0.21
93.2
41.5
134.7
257.3
310.7
77.8
645.8
93.2 Probable
41.5
134.7 Total
473.5 Proved
254.0 Probable
2.6
730.1 Total
0.3 18,711.5 18,795.8 Projects – total
PROJECTS
Altar
Measured
Indicated
Inferred
Total
Rio Grande
Measured
Indicated
Inferred
Total
Marathon
Measured
Indicated
Inferred
Total
Projects – total
Tonnes
(Mt)
1,005.9
1,051.5
556.5
2,613.9
14.1
8.2
22.3
57.4
65.6
15.3
138.3
2,774.5
238
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Classified SA PGM Mineral Resources and Mineral Reserves estimate as at 31 December 2019
Mineral Resources
2019
Tonnes
(Mt)
4E Grade
(g/t)
6E PGM
(g/t)
4E Grade
(Moz)
6E PGM
(Moz)
OPERATIONS – SOUTH AFRICA
Underground
Kroondal 1
Measured
Indicated
Inferred
Total
Rustenburg
Measured
Indicated
Inferred
Total
Marikana 2
Measured
Indicated
Inferred
Total
OPERATIONS – ZIMBABWE
Mimosa 3
Measured
Indicated
Inferred
Inferred (oxides)
Total
Underground – total
Surface
Surface rock dumps and tailings storage facilities
Rustenburg (TSF)
Marikana (TSF)
Surface – total
Operations – Total
1 50% Attributable, managed
2 95.25% Attributable, managed
3 50% Attributable, non-managed
34.2
5.0
2.5
41.7
366.5
118.3
14.9
499.8
67.2
557.6
186.6
811.4
26.5
15.4
4.4
9.0
55.3
1,408.2
69.4
15.0
84.4
1,492.6
3.9
4.6
3.7
4.0
5.7
6.1
5.9
5.8
5.7
5.6
5.8
5.6
3.9
3.8
3.9
3.6
3.8
5.6
1.2
3.2
3.7
3.0
3.2
4.9
5.3
5.6
5.0
4.8
4.7
4.8
4.7
3.7
3.6
3.6
3.5
3.6
4.8
1.1
1.2
1.1
4.5
2018
4E PGM
(Moz)
3.907
0.593
0.234
4.734
3.511
0.604
0.234
4.349
4.280
0.735
0.292
5.307
57.555
20.328
2.676
67.035
23.227
2.846
58.207
21.222
2.755
80.560
93.108
82.185
10.480
84.229
29.050
12.375
99.495
34.507
123.758
146.377
3.124
1.772
0.514
0.998
6.409
3.336
1.887
0.548
1.033
6.804
3.367
1.772
0.514
0.998
6.652
215.076
251.596
93.571
2.381
0.559
2.940
218.016
2.666
2.610
2.610
96.181
Sibanye-Stillwater Integrated Report 2019 239
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
MINERAL RESOURCES AND RESERVES – A SUMMARY CONTINUED
Classified SA 4E and 6E PGM: Mineral Resource estimate as at 31 December 2019 continued
Mineral Resources
2019
Tonnes
(Mt)
4E Grade
(g/t)
6E PGM
(g/t)
4E Grade
(Moz)
6E PGM
(Moz)
PROJECTS – SOUTH AFRICA
Underground
Vygenhoek 4
Measured
Indicated
Inferred
Total
Zondernaam 5
Measured
Indicated
Inferred
Total
Hoedspruit
Measured
Indicated
Inferred
Total
Blue Ridge 6
Measured
Indicated
Inferred
Total
Akanani 7
Measured
Indicated
Inferred
Total
Limpopo 8
Measured
Indicated
Inferred
Total
Project – total
2018
4E PGM
(Moz)
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
77.4
77.4
28.1
4.5
32.6
14.8
4.1
4.2
23.1
191.2
102.2
293.4
2.1
95.2
102.3
199.6
626.0
6.4
6.4
5.5
5.6
5.5
3.3
3.2
3.3
3.3
4.2
3.4
3.9
4.2
4.0
4.1
4.0
4.3
4.5
15.900
15.900
4.980
0.810
5.790
1.570
0.420
0.440
2.430
25.611
11.176
36.786
0.280
12.247
13.358
25.885
86.791
304.807
Grand total – underground, surface and projects
2,118.6
4 Prospecting right expired
5 74% Attributable, managed
6 50% Attributable, managed
7 93.13% Attributable, managed
8 Attributable portions of Baobab (95.25%), Doornvlei (95.25%) and the Dwaalkop JV (45.3%), managed
240
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Classified SA 4E and 6E PGM: Mineral Reserve Estimate as at 31 December 2019
Mineral Reserves
2019
Tonnes
(Mt)
4E Grade
(g/t)
6E PGM
(g/t)
4E Grade
(Moz)
6E PGM
(Moz)
OPERATIONS – SOUTH AFRICA
Underground
Kroondal 1
Proved
Probable
Total
Rustenburg
Proved
Probable
Total
Marikana 2
Proved
Probable
Total
OPERATIONS – ZIMBABWE
Mimosa 3
Proved
Probable
Total
Underground – total
Surface
Surface rock dumps and tailings storage facilities
Rustenburg (TSF)
Marikana (TSF)
Surface – total
Grand total – underground, surface and projects
1 50% Attributable, managed
2 95.25% Attributable, managed
3 50% Attributable, non-managed
3.1
0.0
3.1
4.5
4.9
4.5
4.8
5.1
5.0
3.8
3.6
3.7
4.5
1.2
14.6
0.0
14.6
104.7
7.2
111.9
7.7
56.5
64.2
9.6
5.6
15.2
205.8
69.4
15.0
84.4
290.3
2.6
0.0
2.6
3.8
4.2
3.8
4.1
4.2
4.2
3.5
3.4
3.5
3.8
1.1
1.2
1.1
3.0
2018
4E PGM
(Moz)
1.536
0.000
1.536
1.201
0.000
1.201
1.466
0.000
1.466
12.779
15.077
13.516
0.971
1.140
0.945
13.750
16.217
14.461
1.007
7.594
8.601
1.183
9.174
10.357
1.086
0.604
1.691
1.160
0.644
1.804
1.234
0.607
1.841
25.243
29.843
17,838
2.381
0.559
2.940
28.183
2.666
2.610
2.610
20.448
Sibanye-Stillwater Integrated Report 2019 241
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
MINERAL RESOURCES AND RESERVES – A SUMMARY CONTINUED
Classified SA gold Mineral Resource and Mineral Reserve estimate as at 31 December 2019
OPERATIONS
Underground
Beatrix
Measured
Indicated
Inferred
Beatrix – total
Driefontein
Measured
Indicated
Inferred
Mineral Resources
2019
2018 OPERATIONS
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz) Underground
Beatrix
7.2
5.6
7.5
5.778
4.003 Proved
4.348
3.433 Probable
0.220
0.004
Mineral Reserves
2019
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
2018
Gold
(Moz)
6.7
4.7
4.2
4.0
0.911
0.960
0.594
0.227
6.4 10.347
7.440 Beatrix – total
11.3
4.1
1.505
1.187
Driefontein
12.9
7.679
5.386 Proved
9.3
5.4
4.523
4.732 Probable
1.548
8.2
3.4
6.8
7.6
1.792
1.760
0.828
1.542
25.1
24.3
0.9
50.3
18.5
15.1
9.0
Driefontein – total
42.6
10.0 13.751 10.118 Driefontein – total
11.6
7.1
2.619
3.302
Kloof
Measured
Indicated
Inferred
Kloof
32.7
26.7
8.1
14.6 15.300
7.216 Proved
7.5
6.7
6.466
0.905 Probable
1.737
0.089
11.1
7.8
7.8
6.5
2.795
3.518
1.627
1.503
Kloof – total
67.5
10.8 23.502
8.211 Kloof – total
19.0
7.3
4.422
5.020
Cooke
Measured
Indicated
Inferred
Cooke
1.689 Proved
1.130 Probable
1.220
Cooke – total
0.0
0.0
0.000
4.039 Cooke – total
Underground – total
160.4
9.2 47.600 29.808 Underground – total
41.9
6.4
8.546
9.509
Surface
SRD and TSFs
Beatrix (Indicated)
Driefontein (Indicated)
Kloof (Indicated)
Cooke (Measured)
Cooke (Indicated)
DRDGOLD (Ergo) (Measured) *
DRDGOLD (Ergo) (Indicated) *
DRDGOLD (Ergo) (Inferred) *
DRDGOLD
(FWGR) (Measured) *
Surface – total
Surface
SRD and TSFs
0.043 Beatrix (Probable)
0.021 Driefontein (Probable)
0.043
0.021
8.3
0.3
0.081
0.131 Kloof (Probable)
8.3
0.3
0.081
0.131
11.0
116.1
128.2
76.3
91.7
431.5
0.3
0.3
0.3
0.2
0.3
0.3
0.144 Cooke (Proved)
0.102
0.015 Cooke (Probable)
1.145
1.033
0.577
1.209 DRDGOLD (Ergo) (Proved) *
1.054 DRDGOLD (Ergo) (Probable) *
0.489 DRDGOLD (FWGR) (Proved) *
1.006
1.035
DRDGOLD
(FWGR) (Probable) *
3.945
4.142 Surface – total
11.0
19.0
97.1
66.1
25.6
227.1
0.144
0.102
0.015
0.183
0.232
0.962
0.977
0.772
0.801
0.234
0.234
2.334
2.599
0.3
0.3
0.3
0.4
0.3
0.3
Total operations (incl SRD and TSF – excl projects)
Total operations (incl SRD and TSF – excl projects)
Beatrix
Cooke
Driefontein
Kloof
DRDGOLD
(Ergo and FWGR) *
Operations – total
50.3
11.0
42.6
75.8
412.2
591.9
6.4 10.347
7.483 Beatrix
0.3
0.102
4.198 Cooke
10.0 13.751 10.139 Driefontein
9.7 23.584
8.342 Kloof
0.3
3.762
3.787
DRDGOLD
(Ergo and FWGR) *
2.7 51.545 33.950 Operations – total
11.3
11.0
11.6
27.3
4.1
0.3
7.1
5.1
1.505
1.230
0.102
0.159
2.619
3.324
4.503
5.151
207.7
268.9
0.3
2.151
2.245
1.3 10.881 12.108
* 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.
242
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
Classified SA gold Mineral Resource and Mineral Reserve estimate as at 31 December 2019 continued
PROJECTS
2019
2018 PROJECTS
Mineral Resources
Mineral Reserves
2019
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
2018
Gold
(Moz)
Tonnes
(Mt)
Grade
(g/t)
Gold
(Moz)
Gold
(Moz) Underground
Beatrix
7.9
7.9
5.6
1.419
1.740 Probable BI
5.6
1.419
1.740 Beatrix – total
Underground
Beatrix
Indicated BI
Beatrix – total
Driefontein
Indicated BI
Inferred BI
Driefontein – total
Kloof
Indicated BI
Inferred BI
Kloof – total
Burnstone
Measured
Indicated
Burnstone – total
Bloemhoek
Indicated
Inferred
Bloemhoek – total
De Bron Merriespruit
Indicated
Inferred
De Bron Merriespruit – total
DRDGOLD
Inferred
DRDGOLD – total
Projects – total
Surface
Cooke 1
Measured
Indicated
Cooke – total
Surface – total
Total
12.9
25.4
38.3
9.0
23.7
32.8
0.6
68.6
69.3
27.4
0.9
28.3
23.0
5.3
28.3
Driefontein
3.494
9.085 Probable BI
7.494
8.4
9.2
8.9 10.988
9.085 Driefontein – total
Kloof
8.7
2.527 14.331 Probable BI
2.7
5.1
0.438
0.431
13.2 10.053
2.218
11.9 12.580 16.549 Kloof – total
2.7
5.1
0.438
0.431
Burnstone
6.0
0.124
0.124 Proved
4.9 10.856 10.856 Probable
4.9 10.980 10.980 Burnstone – total
0.1
14.1
14.2
2.4
4.3
4.3
0.011
0.011
1.934
1.934
1.945
1.945
4.7
4.9
4.7
4.5
4.2
4.4
Bloemhoek
4.163
4.163 Probable BI
0.135
0.135
4.297
4.297 Burnstone – total
De Bron Merriespruit
3.307
3.307 Probable
0.715
0.715
15.3
4.3
2.099
2.099
4.022
4.022 De Bron Merriespruit – total
15.3
4.3
2.099
2.099
DRDGOLD
14.795
14.795 DRDGOLD – total
204.8
6.7 44.286 61.469 Projects – total
32.2
4.3
4.483
4.476
Surface
Cooke 1
210.0
52.3
262.3
262.3
0.3
0.3
0.3
0.3
1.721
1.721 Proved
0.524
0.524 Probable
2.245
2.245 Cooke – total
2.245
2.245 Surface – total
467.1
3.1 46.531 63.714 Total
32.2
4.3
4.483
4.476
Grand total – underground,
surface and projects
1,059.0
2.9 98.076 97.663
Grand total – underground,
surface and projects
301.1
1.6 15.363 16.584
1 Relates to the remaining WRTRP assets post the sale to DRDGOLD, which are the Cooke tailings storage facilities
Sibanye-Stillwater Integrated Report 2019 243
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
MINERAL RESOURCES AND RESERVES – A SUMMARY CONTINUED
Classified SA uranium Mineral Resource and Mineral Reserve statement as at 31 December 2019
Mineral Reserves
2019
Grade
(kg/t)
Tonnes
(Mt)
U3O8
(Mlb)
2018
U3O8
(Mlb)
OPERATIONS
Underground
Beatrix
Measured AI
Indicated AI
Inferred AI
Total
Total
PROJECTS
Surface
Cooke 1
Measured
Indicated
Mineral Resources
2019
Grade
(kg/t)
Tonnes
(Mt)
2018 OPERATIONS
U3O8
(Mlb)
U3O8
(Mlb) Underground
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
Cooke 1
210.0
0.090
41.788
41.788 Proved
52.3
0.086
9.936
9.936 Probable
Surface – Total
262.3
0.089
51.724
51.724 Surface – Total
SA operations and projects – underground and surface
TOTAL
273.7
0.130
78.692
78.692 TOTAL
1 Relates to the remaining WRTRP assets post the sale to DRDGOLD, which are the Cooke tailings storage facilities
244
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE
S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
D
E
L
I
V
E
R
I
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
The Marikana smelter at the SA PGM operations
Sibanye-Stillwater Integrated Report 2019 245
Lost-time injury frequency rate (LTIFR) 5
4 5.23
10.13
4.77
5.62
5.89
9.97
4.68
38
16
58
40
38
22
45
43
42
23
45
44
45
Employee costs share % of cost of sales
before amortisation and depreciation
%
No. of employees including
contractors – total 3
Female representation in the workforce %
Safety
No. of fatalities
84,521
13
4 6
9.3
0
11
6
64,906
13
24
14
0
8.5
0
15
3
FOUR-YEAR STATISTICAL REVIEW
SUSTAINABLE DEVELOPMENT STATISTICS
2019
2018
US
operations
Group
SA
operations
Group
US
operations
SA
operations
2017
US
2016
Group
operations
SA
operations
Group
SA
operations
Unit
PGM
PGM
Gold
PGM
PGM
Gold
Unit
2 PGM
PGM
Gold
1 PGM
Gold
Employment
Salaries and wages paid
R million
21,163
3,144
10,601
7,418
15,710
2,583
5,483
7,645
Salaries and wages paid
R million
15,323
1,599
5,724
8,000
9,276
1,483
7,793
12
21
6.52
Lost-time injury frequency rate (LTIFR) 5
6 7.80
7 6.33
Employment
Employee costs share % of cost of sales
before amortisation and depreciation
No. of employees including
contractors – total 3
Female representation in the workforce %
Safety
No. of fatalities
Medically treated
injury frequency rate (MTIFR) 5,7
No. of cases reported:
Health
Silicosis 8
Noise-induced hearing loss (NIHL) 8,9
Chronic obstructive airways disease 8
Cardiorespiratory tuberculosis (TB) –
new and retreatment cases
TB incidence – new and relapse cases
Highly-active antiretroviral treatment
(HAART) patients on treatment and in
66,472
13
11
5.78
261
193
50
570
623
7
0
NA
0
0
NA
NA
49
14
2
4.69
68
100
13
148
148
45
12
9
193
93
37
422
475
74,531
14
6.62
2
4.84
12
6.99
240
188
46
707
707
89
62
16
73
23 73
151
126
30
634
634
4 3.17
22.24
3.06
2.14
2.69
24.51
1.95
2.32
2.60
24.65
2.44
7 2.26
3.85
5.72
3.47
4 131
4 355
4 68
4 491
4 553
NA
0
NA
NA
NA
60
189
39
270
284
71
166
29
221
269
165
243
70
480
539
NA
0
NA
NA
NA
106
167
41
155
157
59
76
29
325
382
Number
4 10,744
NA 10 3,731
7,013
9,745
NA
3,090
6,655
active employment 10
Number
9,761
NA
3,133
6,628
9,925
3,545
6,380
Medically treated
injury frequency rate (MTIFR) 5,7
Health
No. of cases reported:
Silicosis 8
Noise-induced hearing loss (NIHL) 8,9
Chronic obstructive airways disease 8
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 10
246
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SUSTAINABLE DEVELOPMENT STATISTICS
2019
US
SA
2018
US
SA
operations
Group
operations
operations
Group
operations
2017
2016
Group
US
operations
SA
operations
Group
SA
operations
Unit
PGM
PGM
Gold
PGM
PGM
Gold
Unit
2 PGM
PGM
Gold
1 PGM
Gold
Employment
Salaries and wages paid
R million
21,163
3,144
10,601
7,418
15,710
2,583
5,483
7,645
Salaries and wages paid
R million
15,323
1,599
5,724
8,000
9,276
1,483
7,793
Lost-time injury frequency rate (LTIFR) 5
4 5.23
10.13
4.77
5.62
5.89
9.97
4.68
Lost-time injury frequency rate (LTIFR) 5
Employee costs share % of cost of sales
before amortisation and depreciation
No. of employees including
contractors – total 3
Female representation in the workforce %
Safety
No. of fatalities
before amortisation and depreciation
%
38
16
58
40
38
22
45
43
Employment
Employee costs share % of cost of sales
No. of employees including
contractors – total 3
Female representation in the workforce %
Safety
No. of fatalities
Medically treated
injury frequency rate (MTIFR) 5,7
No. of cases reported:
Health
Silicosis 8
Noise-induced hearing loss (NIHL) 8,9
Chronic obstructive airways disease 8
Cardiorespiratory tuberculosis (TB) –
new and retreatment cases
TB incidence – new and relapse cases
Highly-active antiretroviral treatment
(HAART) patients on treatment and in
4 3.17
22.24
3.06
2.14
2.69
24.51
1.95
2.32
84,521
13
4 6
4 131
4 355
4 68
4 491
4 553
9.3
0
NA
0
NA
NA
NA
11
6
60
189
39
270
284
64,906
13
24
14
0
71
166
29
221
269
165
243
70
480
539
8.5
0
NA
0
NA
NA
NA
15
3
106
167
41
155
157
12
21
6.52
59
76
29
325
382
active employment 10
Number
4 10,744
NA 10 3,731
7,013
9,745
NA
3,090
6,655
Medically treated
injury frequency rate (MTIFR) 5,7
Health
No. of cases reported:
Silicosis 8
Noise-induced hearing loss (NIHL) 8,9
Chronic obstructive airways disease 8
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 10
42
23
66,472
13
11
5.78
7
0
6 7.80
49
14
2
4.69
45
12
9
7 6.33
45
44
45
74,531
14
6.62
2
4.84
12
6.99
2.60
24.65
2.44
7 2.26
3.85
5.72
3.47
261
193
50
570
623
NA
0
0
NA
NA
68
100
13
148
148
193
93
37
422
475
240
188
46
707
707
89
62
16
73
23 73
151
126
30
634
634
Number
9,761
NA
3,133
6,628
9,925
3,545
6,380
Sibanye-Stillwater Integrated Report 2019 247
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION FOUR-YEAR STATISTICAL REVIEW CONTINUED
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 19
Environmental incidents:
level 3 and higher
Gross rehabilitation liabilities
Representation (South Africa) 21
Top management (Board)
Senior management (executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
Total socio-economic development (SED) 17 R million
4 158
5.76
Social and labour plan (SLP) projects 17
R million
4 1,584
Total BEE procurement spend 18
R million
4 14,529
Capital goods 18
Services 18
Consumables 18
% of total procurement 18
Other
Current tax and royalties
Research and development
%
%
%
%
NA
70
80
74
R million
R million
2,280
50
NA
NA
NA
NA
NA
NA
2019
2018
US
operations
Group
SA
operations
Group
US
operations
SA
operations
PGM
PGM
Gold
PGM
PGM
Gold
2017
US
2016
Group
operations
SA
operations
Group
SA
operations
2 PGM
PGM
Gold
1 PGM
Gold
2,509
NA
NA
2,509
3,450
NA
NA
3,450
NA
7,552
11,967
NA
11,967
4 7,414
4 1,597
0.16
1,893
4 5.98
4 1,136
4 123.9
50.0
251
211
0.18
4 3.7
0.35
368
3.6
0.95
3,149
953
0.10
4 1,889
2.22
662
19.5
19.3
4,014
433
5,666
2,157
0.27
0
3.41
105
100.8
29.7
0.14
660
5.60
1,003
126
56
141
569
0.11
5 4.4
0.32
314
4
1.2
1,442
4,083
995
593
0.07
197
1.49
481
16
16
0.24
459
3.79
208
106
39
1.17
16 0.63
0.74
1.97
1.35
16 0.35
0.78
2.23
4 5
10.90
0
0.59
2
5.63
3
6
4.68
7.77
1
0.67
3
2.83
2
4.27
Environment
Cyanide consumption
Total CO2e emissions:
Scope 1 and 2 11
Scope 3 11,12
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
Representation (South Africa) 21
Top management (Board)
Senior management (executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend 23
Capital goods 18
Services 18
Consumables 18
% of total procurement 18
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
7,552
6,598
2,539
0.13
611
6.01
853
126
55
1.32
18
7.46
45
40
36
50
81
77
78
78
903
13
Total socio-economic development (SED) R million
Social and labour plan (SLP) projects 17
R million
1,161
24
NA
215
544
0.01
0.24
179
6
2
1
0.43
6
0.56
NA
NA
3
NA
NA
NA
NA
NA
NA
1,616
980
4,766
1,016
5,432
1,029
575
180
4,857
849
0.12
0.24
0.06
200
1.61
460
14
14
0.69
3
2.72
38
53
367
11
82
82
78
80
0.25
405
4.16
214
109
40
2.10
9
4.18
35
49
792
13
81
73
77
76
0.22
667
4.72
462
112
46
1.71
19
6.15
31
45
29
53
656
59
81
84
68
77
1,678
16
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
46
36
40
49
42
48
93
639
1,390
18
48
55
59
945
9,093
5,436
10,841
NA
78
79
79
NA
60
80
67
82
76
81
79
308
19
NA
NA
5.13
NA
NA
NA
NA
NA
NA
33
52
399
15
43
48
986
3
5,505
5,336
Total BEE procurement spend 17
R million
10,605
4,901
5,704
7,585
2,689
4,896
83
85
83
83
75
81
70
75
4 45
4 41
4 46
4 52
NA
NA
1 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
2 As the US PGM operations were acquired in May 2017, this represents eight months in that year
3 For a detailed breakdown of employees and contractor numbers, refer to the Superior value for the workforce section on page 147 of this report
4
The sustainable development indicators for 2019 have been externally assured by PwC. Refer to the Statement of Assurance on page 255 of this report
For details on similar assurance in prior years, refer to prior integrated reports available at www.sibanyestillwater.com
5 Rate per million hours worked
6 These indicators were restated due to rounding and the re-application of the Group definition
7 Includes certain minor injuries
8 Includes new and resubmission cases
248
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE SUSTAINABLE DEVELOPMENT STATISTICS CONTINUED
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
%
%
%
%
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 19
Environmental incidents:
level 3 and higher
Gross rehabilitation liabilities
Representation (South Africa) 21
Top management (Board)
Senior management (executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend
Capital goods 18
Services 18
Consumables 18
% of total procurement 18
Other
Current tax and royalties
Research and development
2019
US
SA
2018
US
SA
operations
Group
operations
operations
Group
operations
PGM
PGM
Gold
PGM
PGM
Gold
2,509
NA
NA
2,509
3,450
NA
NA
3,450
4 7,414
4 1,597
0.16
1,893
4 5.98
4 1,136
4 123.9
50.0
251
211
0.18
4 3.7
0.35
368
3.6
0.95
3,149
953
0.10
4 1,889
2.22
662
19.5
19.3
4,014
433
5,666
2,157
0.27
0
3.41
105
100.8
29.7
0.14
660
5.60
1,003
126
56
1.17
16 0.63
0.74
1.97
1.35
16 0.35
0.78
2.23
4 5
10.90
0
0.59
2
5.63
3
6
4.68
7.77
1
0.67
3
2.83
2
4.27
141
569
0.11
5 4.4
0.32
314
4
1.2
5.13
NA
NA
NA
NA
NA
NA
NA
NA
1,442
4,083
995
593
0.07
197
1.49
481
16
16
0.24
459
3.79
208
106
39
33
52
399
15
83
85
83
83
43
48
986
3
75
81
70
75
4 45
4 41
4 46
4 52
NA
70
80
74
NA
NA
NA
NA
NA
NA
NA
NA
48
55
59
945
NA
78
79
79
42
48
NA
60
80
67
46
36
40
49
82
76
81
79
308
19
R million
R million
2,280
50
Environment
Cyanide consumption
Total CO2e emissions:
Scope 1 and 2 11
Scope 3 11,12
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
Representation (South Africa) 21
Top management (Board)
Senior management (executives)
Middle management (E band)
Junior management (D band)
Social and procurement spend 23
Unit
000t
000t
000t
tCO2e/t
milled
tonnes
TWh
TJ
000ML
000ML
kL/t
treated
Number
R billion
%
%
%
%
7,552
6,598
2,539
0.13
611
6.01
853
126
55
1.32
18
7.46
45
40
36
50
2017
2016
Group
US
operations
SA
operations
Group
SA
operations
2 PGM
PGM
Gold
1 PGM
Gold
NA
215
544
0.01
6
0.24
179
2
1
0.43
6
0.56
NA
NA
3
NA
NA
NA
NA
NA
NA
NA
7,552
11,967
NA
11,967
1,616
980
4,766
1,016
5,432
1,029
575
180
4,857
849
0.06
200
1.61
460
14
14
0.69
3
2.72
38
53
367
11
0.25
405
4.16
214
109
40
2.10
9
4.18
35
49
792
13
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
4,901
5,704
7,585
2,689
4,896
82
82
78
80
81
73
77
76
81
84
68
77
1,678
16
85
93
88
90
77
79
62
71
Total socio-economic development (SED) 17 R million
4 158
5.76
Social and labour plan (SLP) projects 17
R million
4 1,584
93
639
1,390
18
Total socio-economic development (SED) R million
Social and labour plan (SLP) projects 17
R million
1,161
24
Total BEE procurement spend 18
R million
4 14,529
9,093
5,436
10,841
5,505
5,336
Total BEE procurement spend 17
R million
10,605
Capital goods 18
Services 18
Consumables 18
% of total procurement 18
Other
Current tax and royalties
Research and development
%
%
%
%
R million
R million
81
77
78
78
903
13
9 The NIHL testing method differs at the US and SA operations
10 HAART Statistics for 2019 exclude the newly acquired Marikana operation
11 Scope 1 and 2 emissions include fugitive mine methane. The fugitive mine methane emissions for 2019 amounted to 366 037t 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. Though the base year and prior year emissions has as yet not been
restated to include the Marikana operations, as a first step, towards meeting the recommendations of the World Resources Institute, greenhouse gas
protocol, A corporate accounting and reporting standard, revised edition, the scope 1 and 2 emissions and scope 3 emissions include the emissions from
the Marikana operations for the 2019 calendar year. The Marikana operations were acquired in June 2019 and the full integration and alignment is still
underway. Scope 2 emissions are representative of the market-based method. For years prior to 2019, the location-based scope 2 emissions were used as
a proxy for the market-based emissions in accordance with the WRI GHG Protocol
Sibanye-Stillwater Integrated Report 2019 249
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION FOUR-YEAR STATISTICAL REVIEW CONTINUED
OPERATING STATISTICS
US PGM operations (acquired in May 2017)
Production
Ore milled
2E PGM production
Price and costs
Average PGM basket price
Operating cost 19
Adjusted EBITDA 21
Adjusted EBITDA margin 22
All-in sustaining cost 23
All-in sustaining cost margin 23
Total capital expenditure
SA PGM operations (attributable) 2
Production
Ore milled
4E PGM production
Price and costs 24
Average PGM basket price
Operating cost 20
Adjusted EBITDA 21
Adjusted EBITDA margin 22
All-in sustaining cost 23
All-in sustaining cost margin 23
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
2019
2018
1 2017
2016
1,441
18,475
594
1,339
18,432
593
855 855
11,706
376
20,287
13,337
12,330
11,612
7,423
239
12,209
832
7,993
545
350
9
10,403
709
8
10,403
709
11,612
13,087
421
12,209
832
7,993
545
350
9
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
10,417
10,399
10,403
787
14
1,000
76
782
16
1,035
78
709
8
327
23
1,403
9,978
690
7,291
27
11,337
784
45
235
1,007
7,576
572
4,152
26
8,994
677
37
214
3,393
2,833
25,841
36,568
1,176
13,838
1,045
11,019
832
2,882
19
31,624
50,025
1,608
19,994
1,383
14,699
1,017
8,796
32
14,857
1,027
8
2,248
155
12 Scope 3 emissions decreased in 2019 as compared to 2018, as a result of operational downscaling (2, 6, 7 shafts at Driefontein and Beatrix 1 shaft and
1 gold plant) which led to lower levels of commodities being used, improvement in the emission factor for refining and smelting and the decrease of
the Eskom electricity transmission and distribution loss emission factor for the SA operations from 0.0567 to 0.02.
For Scope 3 emissions from the US operations, 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.
The following Scope 3 categories are not included:
• Capital goods, fuel- and energy-related emissions not included in Scope 1 or Scope 2: emissions associated with extraction, production and
transportation, waste generated in operations, downstream transportation and distribution, end-of-life treatment of sold products, and
downstream leased assets from Marikana operations were not historically tracked and are excluded. These categories will be phased-in over the
next few years
• 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
250
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE OPERATING STATISTICS CONTINUED
2019
2018
1 2017
2016
SA OPERATIONS
SA gold operations
Production
Ore milled
Gold produced
Price and costs
Gold price
Operating cost 20
Adjusted EBITDA 22
Adjusted EBITDA margin 23
All-in sustaining cost 24
All-in sustaining cost margin 24
Total capital expenditure
000t
kg
000oz
R/kg
US$/oz
R/kg
R million
%
R/kg
US$/oz
%
R million
US$ million
41,498
29,009
933
648,662
1,395
637,681
(969)
(5)
717,966
1,544
(11)
2,066
143
27,199
36,600
1,177
535,929
1,259
490,209
1,362
7
557,530
1,309
(4)
3,248
245
19,030
43,634
1,403
536,378
1,254
408,773
5,309
23
482,693
1,128
10
3,410
256
20,181
47,034
1,512
586,319
1,242
369,707
9,920
36
450,152
954
23
3,824
261
Note 12 (continued)
The following Scope 3 categories are 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 waste water in facilities
owned or operated by third parties (such as municipal landfills and waste water 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
• Use of sold products: CO2e emissions associated with the use of 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
13 Emissions intensity (t CO2e per t milled) is the intensity ratio of total Scope 1 and 2 emissions to tonnes milled at the operations under our operational
control
14 Sulphur dioxide (SO2) emissions for the SA and US operations are from the PGMs smelting operation. In 2019, Sibanye-Stillwater acquired Marikana
operations and SO2 from PGM smelting has been identified as a key performance indicator for assurance. SO2 from smelting is applicable to the
Marikana operations at the SA operations and the smelter of the metallurgical complex at the US operations
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 of each of its water use licences
16 Water use intensity in the US operations is 0.63kL/tonne treated in 2019. 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. For 2018, the intensity levels for the US operations
were calcualted using water tonnes treated, not mining tonnes treated
17 Definitions have changed from previous years, for a breakdown please refer to page 198
18 The BEE proportion of total procurement applies to procurement spend in South Africa only
19 For detail on these figures, refer to footnote 7 on page 214 in Minimising our environmental impact (under water management)
Sibanye-Stillwater Integrated Report 2019 251
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION FOUR-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 25
Total liabilities
Statement of cash flows (extract)
Net increase/(decrease) in cash
and cash equivalents
Other financial data
Adjusted EBITDA 22
Net debt 27
Net debt to adjusted EBITDA
Net asset value per share
Debt to equity 28
Dividends declared per share
Dividend yield 29
Average exchange rate 30
Closing exchange rate 31
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
2019
72,295
433
2
(40)
2,670,029
5,619
101,072
23,736
69,934
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
R million
3,129
352
1,403
408
R million
R million
ratio
R
ratio
R
%
R/US$
R/US$
R billion
US$ billion
000
R/share
R/share
R/share
14,956
20,964
1.4
11.66
224.6
–
–
14.46
14.00
95.8
6.84
21,383
35.89
16.76
35.89
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
60
3.8
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
1.95
6.9
14.68
13.69
23.6
1.72
6,165
70.23
21.98
25.39
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 HDP in management includes management classified as designated groups and employed at management levels (excluding foreign nationals and white
males)
22 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 2019
23 Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by revenue
24 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 2019.
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
25 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
26 This represents total borrowings as per the consolidated financial statements. Refer to the Consolidated financial statements–Notes to the
consolidated financial statements–Note 26 : Borrowings
27 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
28 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
29 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
30 The average exchange rate during the relevant period as reported by IRESS
31 The closing exchange rate at financial year end
252
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE S
E
T
T
I
N
G
T
H
E
S
C
E
N
E
W
H
A
T
D
R
V
E
S
U
S
I
L
E
A
D
E
R
S
H
I
P
D
E
L
I
V
E
R
I
N
G
O
N
O
U
R
S
T
R
A
T
E
G
Y
A
N
D
O
U
T
L
O
O
K
A
N
C
I
L
L
A
R
Y
I
N
F
O
R
M
A
T
I
O
N
View of an SA gold operation
Sibanye-Stillwater Integrated Report 2019 253
SECTION
05
ANCILLARY
INFORMATION
255 Statement of assurance
258 Shareholder information
260 Forward-looking statements
261 Administrative and corporate information
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
I
S
U
S
E
V
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
254
Sibanye-Stillwater Integrated Report 2019
STATEMENT OF ASSURANCE
To the directors of Sibanye-Stillwater
We have undertaken a limited assurance engagement in respect of the selected sustainability information, as described below, and presented
in the 2019 Integrated Report of Sibanye-Stillwater Limited (the ‘Company’, ‘Sibanye-Stillwater’ or ‘you’) for the year ended 31 December 2019
(the Report). This engagement was conducted by a multidisciplinary 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 information, referenced
footnote 4 on pages 246 to 248 of the Report. The selected sustainability information described below has been prepared in accordance
by
with the Company’s reporting criteria that accompanies the sustainability information on the relevant pages of the Report (‘the accompanying
reporting criteria’).
Selected sustainability information
Environment
Total CO2 equivalent emissions: Scope 1 and 2
Total CO2 equivalent emissions: Scope 3
Electricity consumed
Number of environmental incidents: level 3 and higher
Total water withdrawn
Diesel
SO2 emissions
Health
Unit of
measurement
Boundary
‘000 tCO2e
‘000 tCO2e
TWh
Number
‘000 ML
TJ
Tonnes SO2
Sibanye-Stillwater Group
Sibanye-Stillwater Group
Sibanye-Stillwater Group
Sibanye-Stillwater Group
Sibanye-Stillwater Group
Sibanye-Stillwater Group
United States PGM and
Marikana operations
Number of new and resubmitted silicosis cases reported
Number of cases
South African operations only
Number of new and resubmitted noise induced hearing loss (NIHL) cases reported
Number of cases
Sibanye-Stillwater Group
Number of new and resubmitted chronic obstructive airways diseases (COAD) cases
reported
Number of cases
South African operations only
Number of new and retreatment cardiorespiratory tuberculosis (TB) cases reported Number of cases
South African operations only
Number of new and relapsed TB incidence cases reported
Number of cases
South African operations only
Highly-active antiretroviral treatment (HAART) patients on treatment and active
employment
Number of
patients
South African operations only
(excl. Marikana)
Safety
Lost time injury frequency rate (LTIFR)
Medically treated injury frequency rate (MTIFR)
Number of fatalities
Social
Rate
Rate
Sibanye-Stillwater Group
Sibanye-Stillwater Group
Number
Sibanye-Stillwater Group
Total socio-economic development (SED) spend
Total approved social and labour plan (SLP) project spend
R million
R million
Sibanye-Stillwater Group
South African operations only
HDP representation in:
• top management (Board)
• senior management (executives)
• middle management (E-band)
• junior management (D-band)
Total BEE procurement spend
We refer to this information as the ‘selected sustainability information’.
%
%
%
%
R million
South African operations only
Sibanye-Stillwater Integrated Report 2019 255
Sibanye-Stillwater Integrated Report 2019 255
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION STATEMENT OF ASSURANCE CONTINUED
YOUR RESPONSIBILITIES
The directors are responsible for the selection, preparation and presentation of the selected sustainability information in accordance with the
accompanying reporting criteria available on the website
http:reports.sibanyestillwater.com/ (the ‘reporting criteria’).
This responsibility includes:
• the identification of stakeholders and stakeholder requirements, material issues, commitments with respect to sustainability performance, and
• the 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 information and for ensuring that those criteria are publicly available to the Report users.
INHERENT LIMITATIONS
Non-financial performance information is subject to more inherent limitations than financial information, given the characteristics of the subject
matter and the methods used for determining, calculating, sampling and estimating such information. The absence of a significant body
of established practices on which to draw allows for the selection of different but acceptable measurement techniques which can result in
materially different measurements and can impact comparability. Qualitative interpretations of relevance, materiality and the accuracy of data are
subject to individual assumptions and judgements. The precision of different measurement techniques may also vary. Furthermore, the nature
and methods used to determine such information, as well as the measurement criteria and the precision thereof, may change over time.
In particular, where the information relies on carbon, other emissions and energy conversion factors derived by independent third parties, or internal
laboratory results, our assurance work will not include examination of the derivation of those factors and other third party or laboratory information.
OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with the independence and other ethical requirements of Sections 290 and 291 of the Independent Regulatory Board
for Auditors’ Code of Professional Conduct for Registered Auditors (Revised January 2018) and parts 1 and 3 of the Independent Regulatory
Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the IRBA Codes), which are
founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
The IRBA Codes are consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ Code of Ethics
for Professional Accountants and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (including International Independence Standards) respectively.
The firm 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.
OUR RESPONSIBILITY
Our responsibility is to express a limited assurance conclusion on the selected sustainability information, 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 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000
(Revised)), and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements 3410, Assurance Engagements on
Greenhouse Gas Statements (ISAE 3410) issued by the International Auditing and Assurance Standards Board. These Standards require that we plan
and perform our engagement to obtain limited assurance about whether the selected sustainability information is free from material misstatement.
A limited assurance engagement undertaken in accordance with ISAE 3000 (Revised), and ISAE 3410, involves assessing the suitability in the
circumstances of the Company’s use of its reporting criteria as the basis of preparation for the selected KPIs, assessing the risks of material
misstatement of the selected sustainability information 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 information. 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.
256
Sibanye-Stillwater Integrated Report 2019
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Given the circumstances of the engagement, in performing the procedures listed above we:
• interviewed management and senior executives 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 senior executives in our interviews;
• tested the processes and systems to generate, collate, aggregate, monitor and report the selected sustainability information;
• performed a controls walkthrough of identified key controls;
• inspected supporting documentation on a sample basis and performed analytical procedures to evaluate the data generation and reporting
processes against the reporting criteria;
• evaluated the reasonableness and appropriateness of significant estimates and judgements made by the directors in the preparation of the
selected sustainability information; and
• evaluated whether the selected sustainability information presented in the Report are consistent with our overall knowledge and experience
of sustainability management and performance at the Company.
The procedures performed in a limited assurance engagement vary in nature and timing 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 the Company’s selected sustainability information has been prepared, in all material respects, in accordance with the
accompanying reporting criteria.
LIMITED ASSURANCE CONCLUSION
Based on the procedures we have performed and the evidence we have obtained, and subject to the inherent limitations outlined elsewhere
in this report, nothing has come to our attention that causes us to believe that the selected sustainability information as set out in the subject
matter paragraph above for the year ended 31 December 2019 is not prepared, in all material respects, in accordance with the reporting criteria.
OTHER MATTERS
No assurance procedures were performed by PwC on the previous Integrated Reports. The information relating to the prior reporting periods has
not been subject to our assurance procedures.
The maintenance and integrity of Sibanye-Stillwater’s website is the responsibility of Sibanye-Stillwater’s directors. 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 assurance report that may have occurred since the initial date of presentation on Sibanye-Stillwater’s website.
RESTRICTION OF LIABILITY
Our work has been undertaken to enable us to express a limited assurance conclusion on the selected sustainability information to the directors
of the Company 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 the Company, for our work, for this report, or for the conclusion we have reached.
PricewaterhouseCoopers Inc.
Director: Jayne Mammatt
Registered Auditor
Johannesburg
22 April 2020
Sibanye-Stillwater Integrated Report 2019 257
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION SHAREHOLDER INFORMATION
Share information
Sector
Issued share capital
JSE Ticker: SSW
Market capitalisation
at 31 December 2019
at 31 December 2018
at 31 December 2017
at 31 December 2019
at 31 December 2018
at 31 December 2017
12-month average daily share trading volumes
year ended 31 December 2019
year ended 31 December 2018
year ended 31 December 2017
Resources
2,670,029,252
2,266,260,491
2,168,721,220
R95.8 billion
R22.7 billion
R34.3 billion
17,806,070
10,567,124
9,080,455
Share price statistics
12-month low and high for 2019
Low: R9.66 High: R35.89
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 2019
closing price as at 31 December 2018
closing price as at 31 December 2017
R35.89
R10.02
R15.21
NYSE Ticker: SBSW
Market capitalisation
12-month average daily share trading volumes
on the NYSE and other US platforms
at 31 December 2019
at 31 December 2018
at 31 December 2017
year ended 31 December 2019
year ended 31 December 2018
year ended 31 December 2017
US$6.6 billion
US$1.6 billion
US$2.8 billion
4,175,980
3,874,676
4,145,245
Share price statistics
12-month low and high for 2019
Low: US$2.73 High: US$9.93
Free float
ADR ratio
ADRs outstanding
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$6.65
closing price as at 31 December 2019
closing price as at 31 December 2018
closing price as at 31 December 2017
31 December 2019
31 December 2018
31 December 2017
US$ 9.93
US$2.83
US$5.03
83.2%
1 ADR:4 ordinary shares
667,507,250
222,762,141
138,926,006
Ownership summary at 31 December 2019 – top 10 shareholders
Rank
Investor
Current combined holding of shares in issue
% of shares in issue
Gold One International Limited
448,891,942
1
2
3
4
5
6
7
8
9
Government Employees Pension Fund (PIC)
Exor Investments UK
Investec Asset Management
Van Eck Associates Corporation
BlackRock Inc
The Vanguard Group
Dimensional Fund Advisor
Hosking Partners LLP
10
State Street Global Advisors
258
Sibanye-Stillwater Integrated Report 2019
244,814,334
176,159,937
158,890,234
108,566,024
95,256,378
85,933,956
74,726,010
54,334,816
49,953,436
16.81
9.17
6.60
5.95
4.07
3.57
3.22
2.80
2.03
1.86
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE Registered shareholder spread at 31 December 2019
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
Number of
shares
2,628,244
13,687,268
42,598,486
193,426,830
74.37
16.89
5.34
2.55
% of issued
capital
0.10
0.51
1.60
7.24
90.55
100.00
0.86 2,417,688,424
23,741
100.00 2,670,029,252
17,655
4,010
1,268
605
203
Number of
holders
% of total
shareholders
Number of
shares
% of issued
capital
10
8
1
1
0.04
0.03
0.004
0.004
29,174,174
8,390,170
19,233,755
1,550,249
23,730
23,740
99.96 2,640,855,078
100.00 2,670,029,252
1.09
0.31
0.72
0.06
98.91
100.00
Foreign custodian holdings of more than 3% at 31 December 2019
Bank of New York Depositary Receipts
JP Morgan Chase Bank
State Street Bank & Trust Co
Investment management shareholdings of more than 3% at 31 December
Number of
shares
% of issued
capital
669,367,954
143,397,307
139,984,654
25.07
5.37
5.24
Beneficial shareholdings
Government Employees Pension
Fund (PIC)
Exor Investments
Investec Asset Management
Van Eck Associates Corporation
BlackRock Inc
The Vanguard Group Inc
Figures may not add due to rounding
2019
2018
2017
Number of
shares
% of shares
in issue
Number of
shares
% of shares in
issue
Number of
shares
Number of
shares
244,814,334
176,159,937
158,890,234
108,566,024
95,256,378
85,933,956
9.17
6.60
5.95
4.07
3.57
3.22
223,673,695
184,601,372
113,304,131
112,809,131
37,035,123
61,276,405
9.87
8.15
5.00
4.98
1.63
2.70
190,930,628
95,906,000
145,619,201
232,647,340
92,159,514
64,079,278
8.80
4.42
6.71
10.73
4.25
2.95
Sibanye-Stillwater Integrated Report 2019 259
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION FOWARD-LOOKING STATEMENTS
The information in this report may contain 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 Limited’s (“Sibanye-Stillwater” or the “Group”) financial positions, business strategies, plans and objectives of management
for future operations, are necessarily estimates reflecting the best judgment 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, our future business prospects; financial positions; debt position and our ability to reduce
debt leverage; business, political and social conditions in the United States, South Africa, Zimbabwe and elsewhere; plans and objectives
of management for future operations; our ability to obtain the benefits of any streaming arrangements or pipeline financing; our ability
to service our bond instruments; changes in assumptions underlying Sibanye-Stillwater’s estimation of their current mineral reserves and
resources; the ability to achieve anticipated efficiencies and other cost savings in connection with past, ongoing and future acquisitions, as
well as at existing operations; our ability to achieve steady state production at the Blitz project; the success of Sibanye-Stillwater’s business
strategy; exploration and development activities; the ability of Sibanye-Stillwater to comply with requirements that they operate in a
sustainable manner; changes in the market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and
surface gold, PGMs and uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment
of capital or credit; 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; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other environmental, health
and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases in the price of production inputs;
fluctuations in exchange rates, currency devaluations, inflation and other macro-economic monetary policies; the occurrence of temporary
stoppages of mines for safety incidents and unplanned maintenance; the 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; failure of information technology and communications systems; the adequacy of insurance coverage; 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 the spread of other contagious diseases, such as coronavirus (“COVID-19”). Further details of potential risks
and uncertainties affecting Sibanye-Stillwater are described in Sibanye-Stillwater’s filings with the Johannesburg Stock Exchange and the
United States Securities and Exchange Commission, including the Integrated Annual Report 2019 and the Annual Report on Form 20-F for
the fiscal year ended 31 December 2019.
These forward-looking statements speak only as of the date of the content. Sibanye-Stillwater expressly disclaims any obligation or
undertaking to update or revise any forward-looking statement (except to the extent legally required).
E
N
E
C
S
E
H
T
G
N
I
T
T
E
S
I
S
U
S
E
V
R
D
T
A
H
W
P
I
H
S
R
E
D
A
E
L
K
O
O
L
T
U
O
D
N
A
Y
G
E
T
A
R
T
S
R
U
O
N
O
G
N
R
E
V
I
L
E
D
I
N
O
I
T
A
M
R
O
F
N
I
Y
R
A
L
L
I
C
N
A
260
Sibanye-Stillwater Integrated Report 2019
ADMINISTRATIVE AND CORPORATE INFORMATION
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
SIBANYE STILLWATER LIMITED
(SIBANYE-STILLWATER)
Incorporated in the Republic of
South Africa
Registration number 2014/243852/06
Share code: SSW
Issuer code: SSW
ISIN: ZAE000259701
LISTINGS
JSE: SSW
NYSE: SBSW
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
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
AUDITORS
Ernst & Young Inc (EY)
102 Rivonia Road
Sandton
Private Bag X14
Sandton 2146
South Africa
Tel: +27 11 772 3000
COMPANY SECRETARY
Lerato Matlosa
Tel: +27 10 493 6921
Email:
lerato.matlosa@sibanyestillwater.com
AMERICAN DEPOSITARY RECEIPTS
TRANSFER AGENT
BNY Mellon Shareowner Services
PO Box 358516
Pittsburgh
PA 15252-8516
DIRECTORS
Dr Vincent Maphai* (Chairman)
Rick Menell* (lead independent director)
Neal Froneman (CEO)
US toll free: +1 888 269 2377
Tel:
+1 201 680 6825
Email:
shrrelations@bnymellon.com
Charl Keyter (CFO)
Timothy Cumming*
Savannah Danson*
Dr Elaine Dorward-King (appointed
27 March 2020)*
Harry Kenyon-Slaney*
Nkosemntu Nika*
Keith Rayner*
Susan van der Merwe*
Jerry Vilakazi*
* Independent non-executive
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
Sibanye-Stillwater Integrated Report 2019 261
SETTING THE SCENEWHAT DRIVES USLEADERSHIPDELIVERING ON OUR STRATEGY AND OUTLOOKANCILLARY INFORMATION
w w w. s i b a n y e s t i l l w a t e r. c o m
ANCILLARY INFORMATIONDELIVERING ON OUR STRATEGY AND OUTLOOKLEADERSHIPWHAT DRIVES USSETTING THE SCENE