JOHANNESBURG - Mineral resources minister Gwede Mantashe said on Tuesday he was concerned at the decision by Gold Fields to go ahead with restructuring plans without due regard to processes spelled out in the Mineral and Petroleum Resources Development Act (MPRDA).
Gold Fields, one of the world’s largest gold mining firms, announced a restructuring at its South Deep operation which it said would result in approximately 1,560 jobs being cut.
It said notices in terms of Section 189 of the Labour Act would be served on the two unions representing workers, followed by a 60-day consultation process facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA). It said Mantashe had been informed of these developments.
Mantashe said he had met the Goldfields CEO and his executives on Monday, where he was briefed on the company’s plans and requested that it follow the processes outlined in Section 52 of the MPRDA prior to embarking on any retrenchments.
The section states that the holder of a mining right is required to give notice to the mineral resources minister “in the prescribed manner” in terms of downscaling of operations.