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Harmony expects higher gold output, job saving at profitable Doornkop

Doornkop underground gold mine

Doornkop underground gold mine

24th July 2015

By: Martin Creamer

Creamer Media Editor

  

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Gold mining company Harmony Gold last week guided job saving, higher production and a return to profitability at the lossmaking Doornkop gold mine on the West Rand.

The company says in a quarterly and year-end guidance update that the jobs of 3 100 employees and contractors are likely to be saved at Doornkop, the company’s overall gold production in the three months to June 30 will be 4% to 5% higher at 1.08-million ounces and restructuring with union buy-in has 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 says the Doornkop discussions bear testimony to the positive outcome achievable when all parties engage 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,” says Briggs.
Harmony’s full results for the quarter and year ended June 30 will be released on Tuesday, August 18.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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