Doornkop underground gold mine
JOHANNESBURG (miningweekly.com) – Gold mining company Harmony Gold on Wednesday guided job saving, higher production and a return to profitability at the lossmaking Doornkop gold mine on the West Rand.
The company said in a quarterly and year-end guidance update that the jobs of 3 100 employees and contractors were likely to be saved at Doornkop, the company's overall gold production in the three months to June 30 would be 4% to 5% higher at 1.08-million ounces and restructuring with union buy-in had set the troubled Doornkop on the road back to profitability.
The 60-day consultation process, which Harmony began with organised Doornkop labour on May 19, has resulted in the clinching of an agreement on a new operational plan for Doornkop, which is expected to result in most of the 526 employees and contractors affected being transferred to other operations and 183 being either reskilled for redeployment elsewhere in Harmony or being given voluntary severance packages.
Harmony CEO Graham Briggs said the Doornkop discussions bore testimony to the positive outcome achievable when all parties engaged single-mindedly to ensure mine viability and job preservation.
“We would like to acknowledge the role of union leadership and wish to thank them for assisting us in securing Doornkop’s future,” said Briggs.
Harmony’s full results for the quarter and year ended June 30 will be released on Tuesday, August 18.