Sibanye stocks dive after deadly mine accident

Sibanye gold mine. (News24)
Sibanye gold mine. (News24)

Johannesburg – Sibanye-Stillwater[JSE:SGL] shares took a slump following last week’s deadly underground incident at one of its mines.

Shares were down 7.7% to R9.97 in Monday afternoon trade on the JSE, after opening at R10.68.

A total of 13 mineworkers were trapped underground on Thursday at the firm’s Masakhane shaft in Driefontein, following seismic activity. Seven workers were killed and six of the surviving employees are in stable condition in hospital, according to the diversified mineral producer.

CEO Neal Froneman said the company and the Department of Mineral Resources will conduct a comprehensive investigation into this incident to prevent similar occurrences. 

Sibanye said a seismic event measuring 2.5 on the Richter scale occurred on the western side of the Driefontein operations at about 12:15 on Thursday.

Another tremor, measuring about 2.2 on the Richter scale, occurred at about 13:20. It hit the eastern of the shaft, about 2.5km away from the first event.

Blasting operations were suspended across Driefontein operations following the seismic activity, but resumed on Saturday at the unaffected shafts.

Underground earthquakes are normal in South Africa's deep-level mines, and companies say the geological activity is difficult to prevent.

In February, two mineworkers died at another Sibanye-owned mine, while 955 miners were temporarily trapped underground at the firm’s Welkom operation earlier this year.

The incident was caused by an electricity outage during a storm. All the workers were safely rescued.

Unions have raised concern over safety levels at the mining giant, with the National Union of Mineworkers promising to hold talks with mine management.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
ZAR/USD
16.76
(-0.09)
ZAR/GBP
21.15
(-0.12)
ZAR/EUR
18.93
(-0.12)
ZAR/AUD
11.64
(-0.14)
ZAR/JPY
0.16
(+0.01)
Gold
1798.22
(+0.06)
Silver
18.69
(+0.13)
Platinum
824.50
(+0.30)
Brent Crude
43.14
(+2.10)
Palladium
1961.36
(+0.61)
All Share
55417.89
(-0.66)
Top 40
51154.08
(-0.74)
Financial 15
10472.31
(+1.28)
Industrial 25
76134.69
(-1.67)
Resource 10
52483.78
(-0.20)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1929 votes
I am taking a hit, but should be able to recover in the next year
23% - 2531 votes
My finances have been devastated
34% - 3772 votes
It's still too early to know what the full effect will be
25% - 2705 votes
Vote