HomeGoldModder East production down by a half

Modder East production down by a half

Gold One’s The
decline at Gold One’s
Modder East mine
 
Johannesburg, South Africa — MININGREVIEW.COM — 07April 2010 – Gold One International Limited – an Australian and South African gold resource company listed on the ASX and JSE – says its new flagship gold mine Modder East is operating at half of normal volumes because of a strike by the majority of the mine workforce over a wage dispute that started two weeks ago.

A company announcement here said no immediate return to work was likely, with the gap between what the National Union of Mineworkers (NUM) was demanding and the company was offering being too wide.

“Shareholders are advised that the impasse may continue for some time as the difference between the wage increase offer tabled by the company and the demands of the striking employees is still significant,” Gold One said.

Gold One shares were down nearly 4% at 186 cents on the JSE, trading lower on thin volumes.

About 800 of the group’s 1 000 workers have downed tools in a protected strike, and Gold One is implementing a policy of no work, no pay.

The NUM said the two sides were hopeful that a resolution might be found. “We cannot, however, rule out the possibility of the dispute dragging on even longer, due to the company‘s arrogance,” said NUM negotiator at Gold One Thomas Ketsise.

Meanwhile, Gold One has pushed on with implementing the wage hike it offered. “Wage increases for employees outside of the NUM bargaining unit have in the interim been implemented,” the company said.

“Production at the company`s Modder East mine continues at approximately 500 tonnes of ore per day “’ amounting to around 50% of normal daily volume “’ primarily from on-reef development,” it added.

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