JOHANNESBURG (miningweekly.com) – Dual-listed Harmony Gold continues to consult stakeholders in an effort to limit job losses as it moves to restructure its Doornkop shaft.
The gold miner reiterated on Tuesday that the current gold price environment and the significant capital investment required to sustain operations at the shaft, would result in Doornkop continuing to make a loss in the foreseeable future unless it was restructured.
The shaft had incurred a R210-million operating loss in the 2014 financial year, followed by a R98-million loss in the nine months to March 31.
“We have to take into consideration the long-term sustainability of the company as a whole. The Doornkop mine continues to be a drain on the efforts and resources of Harmony and we need to stem these losses.
“The decision to commence on this restructuring process has not been taken lightly. All stakeholders are being consulted in an effort to minimise job losses and to find a lasting and sustainable solution for Doornkop’s viability,” said CEO Graham Briggs.
The National Union of Mineworkers had previously criticised the company for its plans to retrench about 3 000 workers at the mine.
UNDERGROUND FIRE
Meanwhile, Harmony also on Tuesday reported that an underground fire had broken out at Doornkop on May 31. No one was injured in the incident.
“The fire occurred in an old mined out area where some cleaning operations had been taking place. The cause of the fire is not known at this stage. Production has been stopped for safety reasons and indications are that we can start production early next week again.
“The fire has been contained and we continue to monitor the gas readings. We will be able to extinguish the fire in the next couple of days, enabling production to recommence,” said Briggs.