Gold mines: 16 000 jobs at risk

UNPROFITABLE SHAFTS TO CLOSE: EMPLOYEES WERE NOT INFORMED BEFOREHAND, SAYS UNION Like AngloGold, Sibanye took the decision after numerous unsuccessful attempts to contain losses at affected operations.

One in 10 gold mining jobs in SA may disappear if Sibanye Gold closes unprofitable shafts.

More than one in 10 gold mining jobs in SA may disappear after Sibanye Gold announced it is joining AngloGold Ashanti in looking to close unprofitable shafts to stem losses.

Sibanye may cut 7 400 jobs as it prepares to close its Cooke and Beatrix West operations, which account for about 16% of its planned gold production, the company stated yesterday. Added to AngloGold’s planned 8 500 job cuts, that means about 14% of SA’s gold-mine workers are at risk.

Even so, precious metals are still SA’s biggest export and the mines provide employment to low-skilled workers in areas with few alternatives.

Like AngloGold, Sibanye said it took the decision after numerous unsuccessful attempts to contain losses at the affected operations and will explore all options, including selling the assets, before closing them.

“Losses experienced at these operations negatively affect group cash flow as well as the sustainability and economic viability of other operations in the southern Africa region,” Sibanye said.

The National Union of Mineworkers said an additional 3 000 contractors employed at the Sibanye operations may also lose their jobs. Employees were not contacted before yesterday’s announcement, NUM spokesperson Livhuwani Mammburu said.

“These companies are just retrenching without communicating with their own employees. They don’t care about local operations anymore. They’d rather go to the US and invest there,” he said, referring to Sibanye’s recent $2.2 billion acquisition of Colorado-based Stillwater.

Mining companies are taking the government to court over its new Mining Charter, which requires more black ownership of assets and imposes extra levies on the industry. The Chamber of Mines says the charter may cost 100 000 direct jobs.