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Sibanye and the other companies in the Working Group, amongst others, were served with a consolidated
class action application on 21 August 2013. The companies do not believe that they are liable in respect of
the claims brought, and they are defending these. They do, however, believe that they should work
together to seek a solution to this South African mining industry legacy issue.
On 13 May 2016, the South African South Gauteng High Court (“High Court”) ordered, among other things:
(1) the certification of two classes: (a) a silicosis class comprising current and former mine workers who have
contracted silicosis and the dependents of mine workers who have died of silicosis; and (b) a tuberculosis
class comprising current and former mine workers who have worked on the mines for a period of not less
than two years and who have contracted pulmonary tuberculosis and the dependents of deceased mine
workers who died of pulmonary tuberculosis; and (2) that the common law be developed to provide that,
where a claimant commences suing for general damages and subsequently dies before close of pleadings,
the claim for general damages will transmit to the estate of the deceased claimant. The progression of the
classes certified will be done in two phases: (i) a determination of common issues, on an opt-out basis, and
(ii) the hearing and determination of individualised issues, on an opt-in basis. In addition, costs were
awarded in favour of the claimants. The High Court ruling did not represent a ruling on the merits of the
cases brought by the claimants. The amount of damages has not yet been quantified for any of the
claimants in the Consolidated Class Application or for any other members of the classes.
Sibanye and the other respondents believed that the judgement addressed a number of highly complex
and important issues, including a far reaching amendment of the common law, that have not previously
been considered by other courts in South Africa. The High Court itself found that the scope and magnitude
of the proposed claims is unprecedented in South Africa and that the class action would address novel and
complex issues of fact and law. The respondents applied for leave to appeal against the judgement
because they believed that the court’s ruling on some of these issues is incorrect and that another court
may come to a different decision.
On 24 June 2016, the High Court granted the mining companies leave to appeal against the finding
amending the common law in respect of the transmissibility of general damages claims. It refused leave to
appeal on the certification of silicosis and tuberculosis classes. On 15 July 2016, Sibanye and the other
respondents each filed petitions to the Supreme Court of Appeal for leave to appeal against the
certification of the two separate classes for silicosis and tuberculosis. In an attempt to shorten any delay due
to an appeal process, it is permissible to request that the appeals be dealt with on an expedited basis. On
21 September 2016, the Supreme Court of Appeal granted the respondents leave to appeal against all
aspects of the class certification judgement of the High Court delivered in May 2016. The appeal hearing
before the Supreme Court of Appeal is scheduled to be heard from 19 – 23 March 2018.
As a result of the progress made by the Working Group on a variety of issues, management is now in a
position to reliably estimate, within an acceptable range, the Company’s potential share of a possible
settlement of the class action claims and related costs. As a result, the Company has provided R1,1 billion
(US$82 million) before tax, for this obligation which impacts negatively on earnings for the period.
The ultimate outcome of these negotiations and the court sanction of the agreement remains uncertain
and accordingly the provision is subject to adjustment in the future.
Results presentation
Sibanye is finalising its Operating and Financial Results for the six-months ended 30 June 2017, which will be
released on SENS at 08:00 (CAT) on Wednesday, 30 August 2017. The 10:00 (CAT) results presentation will be
preceded by an event at the JSE (starting at 08:00 for 08:30 (CAT), to mark the incorporation of the Stillwater
Operations into the Sibanye Group. For more information, please refer to www.sibanyegold.co.za.