CEO Today Africa Awards

69 www.ceotodaymagazine.com CEO Today Africa Awards 2018 SOUTH AFRICA Stillwater Mining Company for $2.2 billion, earning itself the Deal of the Year award by Ansarada DealMakers for it. A year after the deal, Sibanye-Stillwater had a debt of R24 billion and although it has since reduced it by a quarter, the pressure of a reduced share price and a depressed gold industry has not boded well for the business. The gold operations in the six months of this year faced significant challenges including a decline in production and commodity prices and the rand-dollar exchange rate which affected long term planning, investment and production. Rising input costs such as cost of electricity, wages, water and materials have too had a significant impact on the company’s margins. In the ongoing gold wage negotiations, the business is constantly faced with the difficult task of balancing fair and competitive increases as well as the need to sustain operations and preserve jobs and the livelihood of employees and its communities. 2018 has produced one of the most pressing challenges Froneman has faced. After leading the industry as the best safe production company for four years, 2018 saw a series of accidents where 21 employees lost their lives. Froneman was emotionally and visibly shaken by these tragedies and the impact on the families and communities of these former employees. These heart-breaking events have driven him to create a company transformation plan that he and his team believe will return the company to their proud safe production record, committed to Improving lives. With an eye on the future, Froneman is once again demonstrating his belief in mining as a source of stable jobs for South Africa with the prospective purchase and integration of Lonmin. Following the UK competition authority’s approval and the South African Competition Commission’s recommendation that the South African Competition Tribunal approve the proposed acquisition, the company’s acquisition intends to save between 18 000 and 20 000 jobs in an industry that has been cutting jobs and restructuring for the last five years. The acquisition, will create opportunities for employees and the communities in the economically stressed area of Rustenburg. Indirectly, through multi-stakeholder beneficiation, Sibanye-Stillwater’s total number of jobs benefit approximately two million people through direct employment, investment in communities around Sibanye-Stillwater mines, through public-private partnerships and through procurements. South Africa’s current economic situation calls for sustainable strategies, particularly in the mining sector. Initiatives such as the Care for iMali, a financial literacy program designed to improve financial education among Sibanye-Stillwater’s employees and communities, provides training that empowers participants with critical knowledge to navigate the current economy by promoting financial responsibility and helps employees improve the lives of their families and their communities. As the company approaches the last quarter of the year, the objectives remain clear; to improve lives through mining, to enable an exemplary safe production performance, strengthen the competitive position as a leading, international, precious metals mining company and to continue delivering superior value to all stakeholders. “South Africa’s current economic situation calls for sustainable strategies, particularly in the mining sector.” www.sibanyestillwater.com