They will appeal verdict that paved the way for about half a million current and former miners to proceed with a multi-million-dollar suit, which seeks compensation for those who contracted lung diseases.
Sibanye Gold Mining News
The miner said it was is currently assessing the operational and financial situation of its platinum division, which may require "remedial action".
The class action the firms want to appeal to, paves the way for thousands of current and former miners suffering from silicosis and tuberculosis to seek damage compensation from the companies.
The company said financial losses at the mine threaten the viability of the rest of the Cooke operations, which include four mines and three processing plants.
Sibanye is the largest individual producer of gold in South Africa and one of the 10 largest globally. OceanaGold is a rapidly growing multinational gold producer with assets located in the Philippines, New Zealand and the United States.
If the class action goes ahead, it will affect almost every gold mine in South Africa, including their parent companies, covering their conduct over the last 50 years.
They will dispute the country's High Court decision last month to allow a class action suit seeking damages for up to half a million miners who contracted silicosis and tuberculosis.
The company will seek a court order to stop the strike, which is already affecting output.
High Court decision opens the way for up to 500,000 current and former miners to pursue a multi-million-dollar lawsuit against mining companies over respiratory diseases contracted at work.
Despite the collapse in platinum prices last year, chief executive Neal Froneman is confident that the sector has turned a corner.
Sibanye is not exclusively looking at buying gold assets; it is also considering platinum, coal, uranium and base metals mines.
The gold miner is expanding its portfolio to platinum, coal and uranium, as it also mulls an incursion in the base metals sector.
The move aims to reduce the gold producer's dependence on unreliable electricity supply from state-run utility Eskom Holdings.
The announcement comes only days after Anglo announced a $330m deal to sell lossmaking South African platinum mines to Sibanye Gold.
The deal involves an upfront payment of 1.5 billion rand, with a minimum deferred payment of 3 billion rand, equal to 35% of cash flow generated by the operation.
The companies are expected to make an official announcement on Wednesday.
This the first time in over 15 months that Sibanye officially confirms its interest in Amplats’ Rustenburg assets.
Talks are set to resume on Wednesday, Aug. 12.
South Africa’s top gold producers believe it is highly likely that unions agree to take the latest pay offer presented to them, marking the end of almost 5 weeks of negotiations.
Companies are keen to avoid a repeat of last year’s five-month platinum strike, but their ability to raise salaries is limited.
Gold producers offered above-inflation wages, which make up 55% of their mining costs in the country.
The companies, which bargain collectively under the country’s Chamber of Mines, are already battling low metal prices and mounting electricity costs amid power outages.
Much of the overall decline in reported gold output was due to a significant quarter-on-quarter production declines from AngloGold Ashanti, Goldcorp, and Sibanye Gold.
Harmony Gold, Sibanye Gold Ltd., and AngloGold Ashanti named among the top candidates to consider deals.
Output from the rest of Anglo's diversified mining assets rose, but it wasn't enough to offset underperformance at its platinum mines.