Johannesburg - South African miner Harmony Gold, which has cut about 3 000 jobs over the last year, said on Tuesday talks with labour unions and other key stakeholders continued as it explored a possible restructuring of its loss-making Doornkop mine and sought to limit potential job losses.
Harmony said Doornkop would be unable to return to profitability unless it was restructured. The mine made an operating loss after capital of R210 million during financial 2014 and a further loss of R98 million during the nine months to end-March.
“The decision to commence on this restructuring process has not been taken lightly. All stakeholders are being consulted in an effort to minimise job losses and to find a lasting and sustainable solution for Doornkop’s viability,” Harmony chief executive officer Graham Briggs said in a statement.
Doornkop suffered an underground fire on Sunday in an abandoned area of the mine. Nobody was injured. Production has been stopped for safety reasons but is expected to resume early next week.
ANA