Sibanye boss Froneman proposes three-way merger with top South African miners

The chief executive of Sibanye-Stillwater has floated the idea of South Africa’s biggest mining companies merging to rival the world’s largest gold producers Newmont and Barrick Gold.

Neal Froneman said he believed that combining Sibanye with fellow JSE-listed miners Gold Fields and AngloGold Ashanti would be in South Africa’s national interest, according to South African newspaper Business Day.

Sibanye was formed via a spin out of Goldfields’ oldest South African mines in 2013, and became the world’s largest platinum miner in 2017 following a US$2.2 billion merger with US platinum producer Stillwater Mining.

More recently, the company has turned to growing its gold footprint and has publicly stated it is targeting miners with annual output over one million ounces.

In addition, Sibanye confirmed its entry into the battery metals space after striking an investment agreement with finish lithium miner Keliber Oy earlier this week.

Froneman said in January his ultimate goal is to double the size of the company, which reinstated its dividend in 2020 for the first time since 2017, before he retires in two to three years’ time.

@ABNetworkOnline