JOHANNESBURG (miningweekly.com) – South Africa’s third-largest gold producer Harmony Gold on Friday said it had started discussions with unions on the retrenchment of employees at the still-closed Kusasalethu gold mine, in Carletonville.
The Commission for Conciliation, Mediation and Arbitration is facilitating the Section 189 talks between Harmony and the National Union of Mineworkers, the Association of Mineworkers and Construction Union, Solidarity and Uasa.
Harmony earlier this month delayed the post-festive-season reopening of the mine to review its financial and operational status after a series of strikes at the operation last year, noting that the mine would remain closed until the company was able to operate it safely and profitably.
The gold-mining group said it continued to seek sustainable solutions to normalise production, security, safety and health, as well as compliance with standards, codes and procedures at the mine.
Over 6 000 jobs were threatened, including 5 193 Harmony employees and about 990 contract workers. Only 200 employees would be retained should the mine be mothballed.
Closure of the mine would also have a knock-on effect on an estimated 60 000 people, including host community members, partners, customers and suppliers.
However, Harmony said Kusasalethu would remain closed until all the conditions of reopening had been agreed and committed to by all the unions and other stakeholders.
The once-profitable mine, with a 7.1-million-ounce mineral reserve and the potential to produce between 260 000 oz/y and 300 000 oz/y of gold for 25 years, lost 35 production days and 25 000 oz of gold during a 23-day illegal strike in October, costing the group an estimated R200-million and profit of R125-million.
Talks were expected to resume on Tuesday, January 29.