Hope at Beatrix as Gold Fields issues ultimatum

[miningmx.com] — STRIKING workers have started to return to Gold
Fields’ Beatrix mine in the Free State, the company says, recording attendance levels
in excess of 80% at some shafts.

In an update on the strike situation that has halted operations at all of Gold Fields
South African mines – with the exception of South Deep – the company said 5,000 out
of a total 6,200 workers reported for duty at the North and South shafts. Another
2,800 workers at the Oryx shaft are still on strike. Operations at Beatrix have been
suspended since 24 September.

“It is too early to say if the strike is over, but we continue to monitor the situation
and will make an announcement in due course,’ said CEO Nick Holland.

He has, however, expressed his dismay at the escalation of violence accompanying
the strikes, especially at the group’s KDC East and West operations.

“Particularly disturbing is that in the past few days we have seen a significant
escalation in lawlessness, including damage to public and private property,
widespread intimidation, including many cases of personal violence and several of
attempted murder,’ he said.

“Over the weekend we saw strikers invade and ransack the police station in
Westonaria, and as recently as last night the driver of a company vehicle was
stopped, pulled from his vehicle, seriously assaulted and the vehicle set alight.

“Security personnel who attended the scene were fired on with live ammunition. Such
behaviour is totally unacceptable.’

Around 11,000 out of 14,300 workers have been on strike at KDC West since the
beginning of September. At KDC East, some 8,500 out of 12,400 workers have been
on strike since Sunday, following a two-week strike at the end of August.

Gold Fields has now issued an ultimatum to striking workers at Beatrix and KDC West
to return to work by no later than Thursday (October 18) at 14:00, or face dismissal.
Workers who returned to work would still be in line for the wage increase offer made
by the Chamber last week. Holland said the wage package would cost Gold Fields an
additional R150m to implement.

“We believe that the company has been more than reasonable in the face of all of
these challenges and has done everything possible to deal with striking employees’
concerns, but they continue to refuse to return to work,’ Holland said.

“Gold Fields can no longer tolerate the growing state of lawlessness which, in some
instances, is approaching anarchy. We intend to act decisively to bring these unlawful
strikes to an end.’

The impact of the strikes to date has been a loss of approximately 65,000 ounces of
gold production and R1.2bn in revenue, Holland said.