Mining company Sibanye Gold has entered into consultations with organised labour and other stakeholders over retrenchments at its Cooke 4 mine, the company said on Friday.

"Sibanye Gold advises shareholders that a consultation process in terms of section 189A of the Labour Relations Act, 66 of 1995, will be entered into with organised labour and other relevant stakeholders," spokesman James Wellsted said in a statement.

This was in order to initiate formal consultations aimed at identifying and implementing sustainable solutions to ensure delivery of the required productivity and profitability levels at the Cooke 4 mine.

Section 189 of the Labour Relations Act deals with dismissals based on operational requirements.

"The Cooke assets were primarily acquired for the significant gold and uranium mineral resources and reserves associated with the surface tailings material," Wellsted said.

"These resources are critical in bringing to account Sibanye's West Rand Tailings Retreatment Project or 'WRTRP'."

The Section 189 process involved a 60-day consultation period with trade unions and affected employees, facilitated by the Commission for Conciliation, Mediation and Arbitration.

"Sibanye entered into a similar process at Beatrix West Section in April 2013, following an underground fire which threatened the viability of the operation," Wellsted said.

"Remedial action and restructuring undertaken following the section 189 consultation process, resulted in a significant improvement in profitability at Beatrix West Section and an extension of its forecast operating life."

The Cooke 1, 2 and 3 mines continued to operate in line with forecasts and would not be directly affected by the section 189 process at Cooke 4.