Investors to sue S.Africa miner Sibanye over deaths

A US law-firm said it is suing South African goldminer Sibanye-Stillwater for shareholders seeking to recoup losses after 21 deaths at its mines this year, accusing the company of "misleading" behaviour.

Lawyers Bernstein Liebhard said in a statement issued late Wednesday that Sibanye failed to disclose to shareholders that almost half of mining fatalities in South Africa in 2018 happened at its mines.

The lawsuit will claim that investors have suffered damages and seek to "recover Sibanye shareholders' investment losses" -- but did not give a figure.

The company's share price has dropped 48.7 percent since the beginning of the year.

"Sibanye's culture places short-term profits over safety," said the statement that confirmed a "class action lawsuit has been filed".

"Statements about Sibanye's business, operations, and prospects were materially false and misleading."

The most recent fatality was announced on Tuesday bringing the number in the last month to six.

Sibanye could not be reached for comment despite several calls and emails.

"It's high time that Sibanye takes responsibility for the fatalities that are happening at its operations," South Africa's National Union of Mineworkers told AFP.

"Management is extremely arrogant... now they are being sued by their own investors -- and it's good."

Parliament has called for Sibanye to face action for its safety record -- possibly including the termination of its operating licence.

Parliament mining committee chairman Sahlulele Luzipo suggested external operations managers could be appointed to "to oversee its daily operations... that will be in the best interest of the wellbeing of workers".

Sibanye will host a safety summit on Friday to develop a strategy to rebuild its safety credentials.

Earlier this year, 955 workers at another Sibanye gold mine were trapped underground for more than a day after a power outage caused by storm. They were rescued unharmed.

Sibanye Stillwater last year produced 43,600 kilogrammes (1.5 million ounces) of gold.