Harmony, unions still in talks

29th January 2013 By: Natasha Odendaal - Creamer Media Senior Deputy Editor

JOHANNESBURG (miningweekly.com) – JSE-listed Harmony Gold on Tuesday said it was still in discussions with unions over the possible retrenchment of employees at the still-closed Kusasalethu gold mine, in Carletonville.

South Africa’s third-largest gold producer kicked off talks with the National Union of Mineworkers, the Association of Mineworkers and Construction Union, Solidarity and Uasa in mid-January after initiating Section 189 proceedings for over 5 000 employees.

Despite progressing the discussions and moving “one step closer” to finding a sustainable solution for reopening Kusasalethu, the mine would remained closed until all the conditions of reopening had been agreed and committed to by all the unions and other stakeholders, Harmony CEO Graham Briggs said in a statement.

“Unions have accepted Harmony's rationale for issuing the Section 189 in terms of the Labour Relations Act, which may lead to the possible closure of the mine and the possible retrenchment of all employees,” he added.

Talks were expected to resume on February 6.