Sibanye's Driefontein gold mine nearing end of life, says CEO

accreditation

Sibanye Gold said its Driefontein mine, once part of Africa’s biggest gold-mining operation, is nearing the end of its life and the company won’t deepen it because of tight economic conditions.

“To all intents and purposes, Driefontein is mined out,” Chief Executive Officer Neal Froneman said in Johannesburg on Wednesday.

Sibanye bought the operation from Gold Fields in 2013.

At the time, it formed part of the Kloof-Driefontein complex, and the purchase also included the Beatrix operations.

Kloof and Beatrix remain good-quality assets, Froneman said.

South Africa’s gold industry now employs just over 100 000 people, less than a fifth of the number in an industry that used to power the apartheid economy.

The nation’s 130-year-old gold sector has produced half the bullion mined on Earth to date. Dwindling output has cut gold’s contribution to little more than 1% of the country’s economy, down from 3.8% in 1993 - the year before the ANC won the country’s first democratic elections.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.10
+0.9%
Rand - Pound
20.46
+0.1%
Rand - Euro
17.13
+0.0%
Rand - Aus dollar
10.85
-0.1%
Rand - Yen
0.13
+0.1%
Gold
1,834.71
0.0%
Silver
24.29
0.0%
Palladium
2,111.50
0.0%
Platinum
1,034.00
0.0%
Brent Crude
87.89
-0.6%
Top 40
68,186
-2.1%
All Share
74,835
-1.9%
Resource 10
74,924
-3.0%
Industrial 25
94,147
-1.8%
Financial 15
15,076
-0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot