Sibanye Gold has said it will increase capital expenditure by 10 percent in 2015. In an operating update Sibanye said that its gold production for 2014 was 1.59 million ounces, in line with its guidance.

“Capital expenditure is planned to increase 10 percent to 3.6 billion, largely due to an increase in expenditure on projects to extend the operating lives of the mines and on growth projects,” the company said.

Most miners are cutting costs and reducing capital in the industry in the face of falling commodity prices. Investors are hesitant because of South Africa’s mining industry  which is plagued by labour unrest, power constraints, rising energy and wage costs, and policy uncertainty.

Sibanye is seen as an affluent dividend play focusing on older assets, which do not require the capital expenditure that new mines need. However, the assets still require money and the company said it expected to be able to put money into projects while also maintaining a dividend policy of 25 percent to 35 percent of earnings.

According to Reuters’ data Sibayne’s current dividend yield is 4.13 percent compared to 2.94 percent for the JSE’s all-share index. Sibanye has also indicated it expects to acquire platinum assets. The company is set to release its full-year results on February 19.