Underground protest ends at Sibanye in South Africa

An underground sit-in at Sibanye-Stillwater‘s (JSE: SSW; NYSE: SBSW) Kroondal platinum operations in South Africa in its Kwezi shaft has ended, the company said, with all employees leaving the mine safely and returning to the surface by mid-afternoon local time. 

The action involved disgruntled workers who claimed they have yet to receive payments under the company’s recently introduced employee share option plans (ESOPs).

On Wednesday, about 30 employees and contractors at the Kwezi shaft of Kroondal West, about 100 km northeast of Johannesburg were part of the illegal sit-in that began two days earlier with some 200 employees, local media reported.

The night shift at the K6 shaft was also disrupted, with about 250 people initially gathering in a central waiting place on surface, Sibanye said. 

The striking employees at Kroondal were aggrieved to not have received the annual ESOP payments made last Friday to nearby Rustenburg and Marikana employees. Geoffrey Moatshe, regional secretary of the National Union of Mineworkers, alleged Sibanye was threatening the protesters with dismissal instead of addressing their concerns, local media said on Wednesday. 

Wage agreement

Sibanye has said that under the wage agreement signed last year, the Kroondal employees would only be included as beneficiaries of the ESOP following completion of the acquisition of the Kroondal pool and share agreement by Sibanye’s Rustenburg unit, which is expected by the end of 2024.

“We fully respect employees’ rights to raise their grievances as set out in agreed policies and procedures,” Richard Stewart, chief regional officer for Sibanye, said in a release. “The current illegal and unprotected strike however is disappointing and we appeal to all stakeholders, including employees, to follow the established grievance procedures and to refrain from illegal acts.

“At this time the safety of our employees and contractors, remains our top priority and we will undertake all necessary action to ensure their health and safety while underground,” Stewart added.

Shares in Sibanye-Stillwater fell about 2% by mid-Wednesday in Johannesburg to 21 rand ($1.52) apiece, valuing the company at 59.8 billion rand.