As Deaths Surge, South Africa's Sibanye Blames Careless Miners

(Bloomberg) -- Sibanye Gold Ltd. says workers are largely to blame for a series of fatal accidents at its mines in South Africa this year that have drawn criticism from labor unions and the government.

The company accounts for more than a third of the deaths in all South African mines this year. In the latest incident, four workers died and one was still missing on Tuesday at its Kloof operation.

“It is inexplicable to us,” Sibanye spokesman James Wellsted said of the increase in fatal accidents. “We think a lot of it is behavioral and due to people taking risks and not following safety procedures.”

As Deaths Surge, South Africa's Sibanye Blames Careless Miners

Sibanye, which is the biggest gold mining employer in the country and operates some of the deeper mines, is asking unions and government for help to get workers to comply with procedures and arranged a ‘safety summit’ last month to discuss the issues.

The company employs 64,502 people including contractors in South Africa, where mining safety has been a problem for decades. The country’s mines are among the world’s deepest and oldest, with workers going as deep as 3 kilometers (1.9 miles) in search of ore that’s been mined commercially for over a century.

While safety has improved since the end of apartheid, fatalities in the sector increased last year for the first time in a decade.

The workers who died at Kloof this week had strayed into an abandoned area with no ventilation, Wellsted said. It’s unclear what they were doing there, he said.

The area should have been barricaded, said National Union of Mineworkers Secretary General David Sipunzi. Sibanye “must take responsibility” for the deaths and should be forced to shut down all its mines to allow for a full safety inspection, the union’s safety chairperson, Peter Bailey, said separately.

Sibanye fell 4.7 percent by 2:43 p.m. in Johannesburg, extending this year’s drop to 42 percent.

As Deaths Surge, South Africa's Sibanye Blames Careless Miners

Last month, seven people died at Sibanye’s Driefontein mine after an earth tremor triggered a rock-fall. In February, nearly 1,000 workers were trapped underground for more than a day at Sibanye’s Beatrix mine after a severe storm damaged electricity lines cutting off power supply.

Earth tremors, or seismic events as the companies call them, are regular occurrences in deep mines, said Bernard Swanepoel, a former CEO of Harmony Gold Mining Co. and board member of Impala Platinum Holdings Ltd. When orebodies become narrower as reserves run out, it becomes more difficult to automate the operations to keep workers away from dangerous areas.

“To pretend there is no risk is misleading,” Swanepoel said. “Unfortunately deep-level mining is inherently a lot riskier.”

There’s not much companies can do to completely eliminate mining deaths, said Rene Hochreiter, analyst at Noah Capital Markets Ltd.

“The alternative is to shut down gold mines completely,” he said. “The fatalities are negative for Sibanye, but at the risk of sounding flippant, that’s life. You never get zero fatalities at deep-level mining.”

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