South African gold miner Harmony Gold Mining Company continues to engage the relevant stakeholders to limit job losses as it restructures its loss making Doornkop mine.
The company said on Tuesday that given the current gold price environment and the significant capital investment required to sustain operations at this shaft, all indications are that Doornkop will continue to make a loss in the foreseeable future unless it is restructured.
Doornkop incurred an operating loss after capital of R210 million in the 2014 financial year and a further loss of R98 million during the nine months ended March 31, 2015.
“We have to take into consideration the long term sustainability of the company as a whole. The Doornkop mine continues to be a drain on the efforts and resources of Harmony, and we need to stem these losses.
“The decision to commence on this restructuring process has not been taken lightly. All stakeholders are being consulted in an effort to minimise job losses and to find a lasting and sustainable solution for Doornkop’s viability,” Harmony CEO Graham Briggs said.
Meanwhile, Harmony also reported an underground fire in an old mined out area at Doornkop on Sunday May 31, 2015. “The cause of the fire, in which no one was injured, is not known at this stage. Production has subsequently been stopped for safety reasons and indications are that we can start production early next week again.
“The fire has been contained and we continue to monitor the gas readings. We will be able to extinguish the fire in the next couple of days, enabling production to recommence,” said Briggs.