Sibanye to invest $250m in gold mines

Sibanye to invest $250m in gold mines

Sibanye Gold (JSE:SGL) South Africa’s largest precious metals producer plans to invest US$250 million this year to boost infrastructure at its assets.

CEO Neal Froneman spoke at the European Gold Forum in Zurich yesterday stating the company will issue $115 million to underground projects at the Kloof and Driefontein gold mines on the West Wits.

Sibanye also plans on investing $120 million to develop its new Burnstone gold mine and is looking to cut reliance on power from Eskom Holdings LLC.

The power cut requires large users such as Sibanye to cut usage by 20 per cent when managed blackouts occur, which happened on more than 100 occasions in 2015.

The firm said its 150MW power plant will generate its first electricity at the end of 2017.