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Johannesburg - Gold producer Harmony Gold [JSE:HAR] is in talks with unions to cut more than 3 000 jobs at its Doornkop mine, the National Union of Mineworkers (NUM) said on Friday.
Officials at Harmony could not be reached for comment.
Doornkop has been struggling to ramp up output since an underground fire last year killed nine people.
NUM spokesperson Livhuwani Mammburuu said the company had indicated it planned to put the mine on "care and maintenance," which effectively means closing it.
He said Harmony had issued what is known as a "Section 189 notice" on May 19, a legal requirement that means it will consult with unions, the government and other stakeholders for up to 90 days about the process.
"They want to lay off 3 040 workers there. The reasons given are that the mine has been making losses over the past several quarters," Mammburuu said.
According to Harmony's web site, the mine employs over 3 500 workers including contractors.
"NUM members are saying that Harmony must give back the license so it can be put on market for potential buyers," he said, referring to the company's permit to operate the mine.
29 May 2015
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