Gold Fields strike hangs in balance

[miningmx.com] – THE fate of some 15,000 workers at Gold Fields’ KDC
West mine near Carletonville hangs in the balance today, with the R80bn gold
producer saying that it was preparing to issue a third and final ultimatum to the
miners that they return to work or face dismissal.

“It’s likely we will issue the ultimatum tomorrow (September 20) but perhaps only
apply it next week,’ said Sven Lunsche, spokesperson for Gold Fields.

Gold Fields is waiting for a positive outcome from eleventh-hour discussions staged
between the recently re-elected general secretary of the Congress of South Africa
Union (Cosatu), Zwelinzima Vavi, accompanied by National Union of Mineworkers
(NUM) president, Senzeni Zokwana, and labour representatives at the mine.

According to City Press, Zokwana is to convene a special meeting of the NUM national
executive committee tonight in order to respond to workers’ demands.

Demands include a minimum wage of R12,500, equalisation pay (money promised to
them two years ago) and the removal of local NUM leaders.

If no resolution is reached, KDC West’s labour could be dismissed next week. KDC
West is losing about 1,400 oz of gold production per day, representing about 15% of
the gold firm’s annual production.

Gold Fields said on August 23 that gold production for 2012 would fall to 3.4 million
oz compared to previous guidance of 3.7m oz. Somewhat presciently, it said that
it could not discount further adjustments on guidance as a go-slow as its key South
African mine, South Deep, and other disruptions had taken hold.

That prediction was followed by an eight-day, 12,000-strong illegal strike at KDC East
which started on August 29 until the protest was resolved after the NUM’s national
leadership with NUM members on the mine resolved differences between them and
office bearers of the local NUM branch.

The KDC West strike is now into its 10th day.