South African Metal Producer Sibanye Blames Loss on Lawsuit Provisions and Impairments

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Sibanye, a South African-based producer of precious metals, recently posted a loss per share of 147 cents for the six months of the year, citing provisions and impairments for a health settlement due during the period to mine workers who had contracted lung disease while working.

In 2012, a lawsuit was filed by South African black mine workers regarding how they were poorly treated during the apartheid. Most of them claimed the poor working conditions and welfare packages offered them resulted in health tragedies relating to the fatal lung disease silicosis.

The provision for the expected occupational health care settlement is 1.077 billion rand ($83 million), according to Reuters.

“Sibanye said the losses were also attributable to a 2.8 billion rand impairment charge relating to the cessation of its loss-making Cooke and Beatrix West gold operations and 402 million rand in costs associated with the acquisition of U.S. platinum producer Stillwater,” the Reuters report read.

 

 

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