Johannesburg, South Africa — 03 April 2013 – New South African gold mining company Sibanye Gold has entered into a consultation process, in terms of section 189A of the Labour Relations Act, 66 of 1995, with organised labour, the Department of Mineral Resources and other relevant stakeholders in order to consider the options available for the future of its Beatrix West operation.
The company says the Beatrix West Section (previously Oryx Mine) cost R2.6 billion to develop, but has always been marginal and to date, has not been able to recover the initial capital spent. A number of initiatives to arrest the production decline and rising costs were implemented by Gold Fields Limited and the Beatrix West Section was kept operational in the hope that the situation would improve.
On 19 February 2013 an underground fire broke out in the Beatrix West Section, which has resulted in it losing 61kg of gold per month, equating to a loss of approximately R28 million a month in revenue, a company statement says. The location of the underground fire has also prevented critical ore reserve development from taking place, thus impacting on the sustainability of the Beatrix West Section, and hence the long term future of the operation, it adds.
“The current indications are that the area will be inaccessible until at least the end of June 2014. Based on a review of the Beatrix West Section it is clear that this situation needs to be addressed and corrective measures will be considered in consultation with stakeholders,” the statement concludes.
Source: Sibanye Gold. For more information, click here.