Share

Gold Fields output sinks on strikes, fire

Johannesburg - Gold output at Gold Fields' operations in South Africa dropped 11% in the third quarter due to wildcat strikes and a fire at one of its mines, the firm announced on Monday.

"Production from the South Africa region declined by 11%, from 437 000 ounces in the June quarter to 387 000 ounces in the September quarter," Gold Fields [JSE:GFI] said.

"This decrease includes approximately 30 000 ounces as a result of the fire at Ya Rona (shaft) and approximately 35 000 ounces as a result of the illegal strike action at KDC."

The impact of the strikes is likely to be felt more in the final quarter as the bulk of the work stoppages occured in October.

The company estimates that it will see a total production loss of around 145 000 ounces due to industrial actions in the second half of the year, resulting in a loss of revenue of R2.1bn.

About 29 000 of its employees took part in illegal strikes during an unprecedented spate of labour unrest to hit mines across South Africa, a country highly dependent on mining.

Gold Fields, the world's fourth largest gold producer, warned that the strike, coupled with above-inflation pay hikes and rising energy costs, have increased the risk of "a significant restructuring of our South African operations in the near to medium-term".

Mining firms in South Africa have warned the wave of illegal strikes that ended more than a week ago - with the return to the job by 12 000 Anglo American Platinum [JSE:AMS] workers - could see most of them forced to shed jobs.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.00
-0.3%
Rand - Pound
24.10
+0.0%
Rand - Euro
20.60
-0.0%
Rand - Aus dollar
12.37
+0.5%
Rand - Yen
0.13
+0.6%
Platinum
901.60
-0.1%
Palladium
998.41
-0.8%
Gold
2,154.49
-0.3%
Silver
24.94
-0.4%
Brent Crude
86.89
+1.8%
Top 40
65,626
-0.9%
All Share
71,847
-0.8%
Resource 10
52,847
-0.9%
Industrial 25
99,290
-1.2%
Financial 15
16,552
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders