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JOBS DOWN THE DRAIN?

18th January 2013

By: Darlene Creamer

  

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South Africa’s third-largest gold producer Harmony Gold is keeping its Kusasalethu gold mine shut until the labour strife settles down and the company is able to operate the Carletonville operation safely and profitably. Failure to resolve the issues will result in more than 6 000 jobs going down the drain. Kusasalethu accounts for 14% of the group’s gold production and 18% of its profit and could also impact Harmony’s funding of Papua New Guinea expansions. During five illegal sit-ins, between October 26 and December 21, violence erupted. Two employees were killed and a mine manager was assaulted. Management received death threats and live ammunition was fired at police and security personnel. There was an operational loss of R150-million in the three months to December. The mine will be mothballed if a better solution is not found.

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