Neal Froneman-led Sibanye reports 289 workers trapped in South Africa mine

Key Points

• Sibanye reports 289 miners trapped at Kloof gold mine; all safe at assembly point as rescue and safety checks continue. 
• South Africa mining faces ongoing safety risks amid aging infrastructure and rising costs, highlighted by recent fatal illegal mining incidents. 
• CEO Neal Froneman exits amid financial strain; Sibanye cuts 2024 loss to $311 million, PIC raises stake to 15.4%, signaling cautious investor confidence.

South African mining giant Sibanye-Stillwater, led by Neal Froneman, confirmed Friday that 289 workers remain trapped underground at the company’s Kloof gold mine near Johannesburg. The miners are reportedly safe and gathered at an assembly point deep within the Kloof 7 shaft, one of the deepest gold mining operations in the region, located about 60 kilometers west of the city. 

Details on the cause of the incident remain scarce, but the company is actively conducting safety checks and shaft inspections before hoisting workers to the surface. Sibanye said it is providing food and support to the trapped miners while emergency teams continue rescue efforts. The firm expects to resolve the situation by midday.

South Africa’s mining industry haunted by safety challenges

Mining accidents are an all-too-frequent reality in South Africa, home to some of the world’s oldest and deepest gold mines. This latest incident comes amid an industry grappling with aging infrastructure, volatile commodity prices, and rising operational costs. 

Earlier this year, a grim discovery of 78 bodies in an illegal gold mine underscored the perilous conditions miners face, as authorities sought to clamp down on illicit mining activity. The incident at Sibanye’s Kloof mine shines a harsh light on ongoing safety concerns in the sector.

Sibanye’s struggles continue as CEO Neal Froneman prepares exit

Under Froneman’s decade-long leadership, Sibanye-Stillwater aggressively expanded its portfolio across gold, platinum, and palladium mining. He holds a 0.12 percent stake in the company, worth over 3.2 million shares. Yet, the group is far from out of the woods financially. Despite cutting its 2024 loss to $311 million from $2.03 billion in 2023, the company faces pressure from fluctuating commodity prices and operational challenges. 

In April, Sibanye announced plans to shutter unprofitable South African PGM (platinum group metals) operations if market conditions do not improve amid rising costs. The Public Investment Corporation (PIC) recently boosted its stake in Sibanye to 15.4 percent, investing R218 million ($12.18 million), signaling cautious confidence even as Froneman prepares to step down.

The unfolding rescue at Kloof starkly illustrates the persistent dangers haunting South Africa’s mining industry and raises urgent questions about worker safety amid tightening margins and economic uncertainty.