[miningmx.com] – PRODUCTION at Harmony Gold’s Doornkop mine had been halted following the breakout of a fire, the cause of which was unknown, but which comes within two days after the firm announced it could cut jobs at the operation.
It was at Doornkop in February 2014 that nine miners were tragically killed following the outbreak of a fire at the property.
The National Union of Mineworkers announced on May 29 that more than 3,000 workers could lose their jobs after the union’s members were issued with a Section 189 certificate advising them of plans for a restructure. Doornkop employs about 3,700, so the Section 189 provides for a possible closure of the west Rand mine.
Said Graham Briggs, CEO of Harmony Gold: “The cause of the fire is not known at this stage. Production has been stopped for safety reasons and indications are that we can start production early next week again”.
Doornkop produced 3,631 kilograms (116,738 ounces) in Harmony’s 2014 financial year, equal to about 8% of annual production. However, it is the group’s second most expensive mine to run after the recently restructured Kusasalethu.
Doornkop recorded a R210m loss in the 2014 financial year, and had racked up R98m losses in the financial year to date, said Harmony.
“Given the current gold price environment and the significant capital investment required to sustain operations at this shaft, all indications are that Doornkop will continue to make a loss in the foreseeable future unless it is restructured,” it said.
“The Doornkop mine continues to be a drain on the efforts and resources of Harmony, and we need to stem these losses,” he said.
The outbreak of the fire, however, is a somewhat ominous precursor to both discussions regarding the restructure or closure of the mine, and to wage negotiations in the gold sector which are due to kick off shortly.
Briggs said the fire occurred in an old mined out area where some cleaning operations had been taking place. All miners were brought to surface safely.
“The fire has been contained and we continue to monitor the gas readings,” said Briggs. “We will be able to extinguish the fire in the next couple of days, enabling production to recommence’, he added.
Underground fires have been a consistent hazard to Harmony Gold in the last 18 months. In February, Harmony managed to deliver 486 miners to safety at Kusasalethu after a fire broke out during maintenance work on a bulk air cooler on 75 level.
In October, Briggs took the drastic steps of shutting Kusasalethu for two weeks and sent employees on leave in a bid to combat the threat to safety posed by illegal mining on its premises after a number of fires had been started.
