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Gold Fields closer to ending strike

Johannesburg, South Africa — 05 September 2012 – South African bullion miner Gold Fields says that trade union leadership intervention in a wildcat strike at one of the company’s mines has raised the prospects for a timely return to production.

Reuters reports that about 12,000 workers have been on strike at the east section of the company’s KDC mine in South Africa for almost a week.

Spokesperson Sven Lunsche said the company was losing 1,650oz of production a day and it had used stockpiles until Monday, but for the past two days the stay-away had impacted directly on production.

Unlike the violent strikes that have tainted the South African platinum industry, Gold Fields believes worker discontent stems from an internal dispute within the local branch leaders of the National Union of Mineworkers (NUM) and its members.

NUM president Senzeni Zokwana addressed a mass meeting at the mine yesterday and has agreed to bring the branch leaders and disgruntled members face to face today.

“This is positive development that could see the workers returning to duty soon,” said Lunsche.
“The president’s intervention has made a return to production more likely.”

Shares of Gold Fields have shed 6.56% in the last five days, which is in line with the 6.34% fall in the JSE’s Gold Mining Index.

Source: Reuters Africa. For more information, click here.