Harmony: Firm aims to minimise job losses

BULLION producer Harmony Gold said yesterday that it aimed to minimise redundancies at the loss-making Doornkop mine it was trying to revamp, after a union said 3 000 jobs could be lost. The move by Harmony, which has been battling to turn a profit across its operations in the face of depressed prices and rising costs, also comes ahead of tough wage talks in South Africa’s gold sector. The talks will begin this month. Harmony’s chief executive Graham Briggs said given the current weak gold price and the significant capital investment required to sustain Doornkop, the mine would continue making a loss in the foreseeable future unless it was restructured. “All stakeholders are being consulted in an effort to minimise job losses and to find a lasting and sustainable solution for Doornkop’s viability,” Briggs said. “Doornkop mine continues to be a drain on the efforts and resources of Harmony, and we need to stem these losses.” The National Union of Mineworkers said last week that Harmony had initiated talks which could mean more than 3 000 jobs shed at Doornkop. The share price yesterday fell 1.62 percent to R17.59. – Reuters