Gold Fields cautious as union declares Ghana strike over

A STRIKE at the two Ghanaian mines operated by Gold Fields appears to be over, with a union leader saying workers would return after “comprehensive” talks with management.

Gold Fields was more cautious, saying it was waiting to see if workers on yesterday’s night shift and today’s morning shift reported for duty and it would then issue a statement.

The open-cast Tarkwa and Damang mines in Ghana are the largest single source of gold for Gold Fields after it unbundled three deep-level, ageing South African mines in February.

Gold Fields is estimated to have lost 2,200oz of gold a day from both mines, bringing the total since the strike started last Tuesday to about 11,000oz. It owns 90% of the two mines.

Gold Fields shares closed down nearly 2% at R64.22 each yesterday. Ghana now accounts for about 42% of its production, or 890,000oz based on last year’s production.

“We had a comprehensive discussion with management and we have agreed that work should resume. That is likely to happen later today,” Ghana Mineworkers Union general secretary Prince Ankrah told Reuters.

Gold Fields, which earlier said the strike was unauthorised, began talks with leaders of the union on Thursday, culminating in a deal late on Sunday.

Mr Ankrah declined to give details of the agreement. “All I can say is that we had a fruitful meeting based on which we have asked our colleagues to return to work and I know they will.”

Gold Fields, which had the Kloof, Driefontein and Beatrix mines in SA shut late last year during an unprotected strike, is wary about declaring the strike over after three days of talks. “We’ll issue an update to the market (today), but we are confident that the workers will have returned by morning,” Gold Fields spokesman Sven Lunsche said yesterday.

Among the issues raised by workers at Tarkwa and Damang in a memorandum delivered to Gold Fields were performance bonuses, nutrition at mine canteens, alleged racism by some managers and the retention of a senior Ghanaian employee who was dismissed after a disciplinary hearing.

The Driefontein, Kloof and Beatrix mines were unbundled into a newly formed and listed company called Sibanye Gold, which has subsequently had a fire at its Beatrix mine and was talking about potentially laying off 3,000 people.

Gold Fields said last week its production in the March quarter, excluding the gold from Sibanye, would be 476,000 gold-equivalent ounces, including the copper output from its Cerro Corona mine in Peru.

Cash costs are expected to be about $830/oz and notional cash expenditure (NCE), which is a measure of all-in costs to produce gold, is expected to be about $1,290/oz.

“This performance from the new Gold Fields is in line with the pro- duction guidance for 2013 of between 1,825,000oz and 1,900,000oz and the cash cost and NCE guidance of $860/oz and $1,360/oz, respectively,” Gold Fields said last week.