Sibanye-Stillwater rushes to rescue 260 trapped miners

Precious metals producer Sibanye-Stillwater (JSE: SSWJ; NYSE: SBSW) confirmed Friday that nearly a third of 260 workers trapped underground at its Kloof gold mine, about 60 km west of Johannesburg, South Africa, have been safely brought to the surface.

The company said the remaining 181 miners are safe, with access to food and water, and are gathered at an underground assembly point within Kloof, one of its deepest operations. Rescue efforts continue and Sibanye is aiming to hoist them out “soon.”

An early investigation found that a sub-shaft rock winder skip door opened unexpectedly at the loading point, damaging Shaft 7 and preventing safe passage.

After a detailed risk assessment, Sibanye determined it was safer for workers to stay at the sub-shaft station than attempt a long walk to the surface. The company had initially expected to hoist all employees by mid-Friday. 

Shares in Sibanye-Stillwater fell 1% on Friday in Johannesburg to 26.7 rand (C$2.05) apiece, valuing the company at 75.6 billion rand. 

Union scolds

The National Union of Mineworkers (NUM), which represents workers at the Kloof mine, criticized Sibanye’s handling of the incident.

“We are very concerned because the mine did not even make this incident public until we reported it to the media,” NUM spokesman Livhuwani Mammburu said.

Mammburu added that the miners have now been underground for nearly 24 hours and that Sibanye has repeatedly changed its timeline for the rescue.

Mining accidents remain a grim reality in South Africa, home to some of the world’s deepest and oldest gold mines. In January, at least 78 bodies were recovered from an illegal mine after police cut off supplies in a crackdown that highlighted the risks of unregulated mining. The government estimates illegal mining cost the country over $3 billion last year.

The Kloof mine produces 14% of Sibanye’s total gold output and includes two other active shafts. In 2023, the company closed shaft four due to safety and economic concerns. At year’s end, the mine employed about 8,900 people, including contractors.