Data provided by McGregor BFA
All data is delayed
Loading...
See More

Gold Fields output sinks on strikes, fire

Nov 26 2012 10:38 Sapa
Striking Gold Fields mine workers.

Striking Gold Fields mine workers. (AFP)

Related Articles

S&P downgrades Gold Fields

Shabangu warns mines not to cut jobs

Mines set to bleed jobs

Mine unrest ends, job losses loom

All Gold Fields mines back on track

Gold Fields miners vow to derail progress

 
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.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

gold fields  |  mining unrest
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

ANCYL: Not voting would be blasphemy

Not voting in the forthcoming elections would be blasphemy, the ANCYL says in a statement commemorating the 50th anniversary of struggle icon Nelson Mandela's Rivonia trial speech.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...