Today’s news is about mining company Sibanye Gold and their future plans to spend $250 million.
Neal Froneman, CEO, spoke at the European Gold Forum in Zurich. During his presentation, Neal said that Sibanye will allocate $115 million (R1.6 billion) to underground projects at the Kloof (picture to the right) and Driefontein gold mines on the West Wits. They also expect to invest $120 million (R1.7 billion) to develop their new project, Burnstone gold mine, on the South Rand.
Sibanye Gold, soon to be Sibanye Resources after their name change, separated from Gold Fields Ltd. back in 2012. They have three South African gold operations and are actively searching to take on more. They have stated that they are looking to take advantage of their strong current position and the weakness of most competitors by acquisitions.
Like most gold producers all over the world, Sibanye has been laying off workforce and lowering costs positioning them to enjoy a bullion price that’s up about 17% this year, as well as a weaker rand.
However, Sibanye is not just about gold; they also have a 150-megawatt photovoltaic power plant and it is expected to generate its first electricty near the end of 2017, beginning of 2018. In addition, they are looking to buy platinum, uranium, coal, and base metals mines.
We, at Evans Equipment, think that this is a very promising start to what could be the end of this ugly commodities drought!
*All information for this story was taken from mining.com.