HomeBusiness and policySouth African DMR Minister not impressed with Gold Fields

South African DMR Minister not impressed with Gold Fields

South African DMR Minister, Gwede Mantashe, has noted with concern the decision by mining company Gold Fields to go ahead with its restructuring plans, without due regard to processes in the MPRDA.

Minister Mantashe met with Goldfields CEO and executives yesterday, where he was briefed on the company’s plans, and the Minister requested the company to follow the processes outlined in Section 52 of the MPRDA, prior to embarking on any retrenchments.

“We are beginning to notice a worrying trend where some mining companies do not meaningfully engage with the DMR on their restructuring plans, and only brief us as a mere formality or tick-box exercise, ignoring processes outlined in the law which are binding to every mining right-holder,” says Mantashe said.

“To this end we will be initiating a follow-up meeting with the Minerals Council South Africa, to take forward our discussions when we met two weeks ago, on how we can together address investment, growth, employment and youth challenges facing the sector and economy.

“It is our view that the spirit in which Gold Fields is engaging contravenes the agreed approach and the laws governing the sector,” adds Mantashe.

The minister is therefore appealing to the company to engage meaningfully with the DMR and labour unions in this matter, in the interests of the sustainability of the sector and the economy.