Job cuts not 'cast in concrete'

Earlier, the mining company announced that 6 900 jobs were at risk because of Eskom's power rationing.

"We're working closely with the unions to calculate potential losses. There is nothing cast in stone. We might be able to reduce the impact," Cockerill said.

Terence Goodlace, Gold Fields' executive vice president: Head of South African operations, said that calculations of job losses had been based on what Eskom had told the mines.

According to the energy parastatal, local mines would have to operate at 90% of their normal power supply - and this, Eskom said, would last for the next five years.

At present, the mining company said it was controlling its average power usage to 540 MW - down from the historical average of 601 MW.

Would consider 'any alternatives'

To achieve the 10% reduction in electricity consumption imposed by Eskom, Gold Fields said that the Number 6 and 7 shafts as well as the 9 shaft Depth Extension Project at Driefontein, and the Number 3 and 8 shafts at Kloof Gold Mine, would be mothballed, closed or scaled back.

This would affect about 4 900 employees at these two mines.

South Deep Gold Mine would be restructured as a result of the depletion of the Ventersdorp Contact Reef horizon above 95-level and a new strategy put in place which focused primarily on the completion of the twin shaft infrastructure and development capital programmes.

"This too is unfortunately compounded by the power rationing. The total number of South Deep employees potentially affected is approximately 2 000," Gold Fields said.

However, Goodlace said that Gold Fields, rather than cut jobs, would consider "any alternatives".

These alternatives included early retirement, voluntary retrenchments, contractor replacement and redeployment elsewhere in the group.

Gold Fields emphasised in its conference call that no workers had yet lost their jobs.

'Can't go on strike yet'

"Everyone is still on the mines. Some contracting companies have been curtailed but not Gold Fields' employees," Goodlace said.

"We will go through due process...the National Union of Mineworkers is entitled to strike - but they cannot yet go on strike," Goodlace said.

Production at Gold Field's Beatrix Gold Mine was unlikely to be affected by the reduction in power supply as it was a relatively shallow mine.

"This mine is less energy intensive than the deeper Driefontein and Kloof operations."

Gold Fields said it would to spend about R200m on additional emergency power to safeguard employees in the case of a total blackout.

The company's gold production in South Africa for the current quarter is forecast to decline by between 20% and 25% against the December quarter, due to the total suspension of production for one full week due to power constraints, continued power rationing, and the seasonal impact of the Christmas break.

- Sapa