South Deep strike ‘hurts’ Gold Fields

[miningmx.com] — GOLD Fields said on Tuesday the strike at its South Deep mine was having a “material impact’ on production, as the work stoppage entered its third day.

However, the gold producer said it had not yet received notification of a sympathy strike at its other operations – a threat made by National Union of Mineworkers (Num) earlier in the day.

Over three thousand mineworkers at Gold Fields’ South Deep operation were taking part in the work stoppage.

At the heart of the dispute is Num’s demand to be involved in the appointment of senior managers, and in the procurement and tender processes.

Gold Fields maintains that these are the management’s responsibility.

Gold Fields’ four South African mining operations – South Deep, Driefontein, Kloof and Beatrix – are projected to produce up to 1.83 million ounces per annum for the financial year 2011, according to the fourth quarter results for 2010.

Sven Lunsche, spokesperson for Gold Fields, told I-Net Bridge that the gold miner had not been given formal indication from the union that it planned a sympathy strike.

He admitted that the strike was having a material impact on South Deep production, but added the company was not ready to publicly quantify the production loss as yet.

The development of the South Deep mine was affected, but to a lesser extent than production, he said.

South Deep will ramp up to full production only from 2014 onwards.

Lunsche said talks were ongoing and “we are committed to the engagement’.

He said the company was guided by the mining charter, which states that 40% of management must comprise of historically disadvantaged South Africans (HDSA) by 2014.

Management had just over 30% of HDSA at present. “We are confident we will reach the 40% target by 2014,’ Lunsche said.