Audio By Carbonatix
Gold Fields Ltd. said it may cut more than 1,100 workers at its huge, loss-making South Deep operation in South Africa.
The move according to the company will refocus the mine plan after repeated turnaround efforts failed.
South Deep, Gold Fields’s sole remaining mine in its home country and the world’s second-biggest known body of gold-bearing ore, has lost 4 billion rand ($283 million) over five years, the company said in a statement Tuesday. It’s also spent about 32 billion rand on the asset since 2006.
“Management believes that the mine can no longer sustain these cash losses,” Gold Fields said.
“The proposed restructuring at South Deep aims to consolidate mining activity to increase focus and to match the cost structure to the current level of performance.”
Gold Fields will reduce labor at South Deep, including potential cuts of about 460 contractors, and cut its equipment fleet, it said. Previous forecasts for production can no longer be relied on and the company isn’t yet able to predict how much gold it will produce at South Deep going forward.
It took a further writedown on the mine of 4.8 billion rand.
“Once the full impact of the mine planning exercise and proposed restructuring is completed, we will provide guidance for 2019 and beyond,” it said.
Latest Stories
-
Deputy Energy Minister reaffirms Ghana’s commitment to gas-led development at West Africa Gas Summit
3 minutes -
Protect Ghanaians in South Africa through diplomacy – Bosome Freho MP to gov’t
11 minutes -
About 49,000 Ghanaians still live in South Africa – Bosome Freho MP discloses
14 minutes -
Bosome Freho MP urges South Africa to take decisive action against Xenophobic attacks
19 minutes -
Mfantsipim SHS final-year student commits suicide
26 minutes -
Complete Farmer launches CF Grower and CF Buyer to deepen digital agriculture in Ghana
32 minutes -
Nukunu Sports Academy to support young football enthusiast until he turns 14
41 minutes -
With green card, Ofori-Atta has far more protection than he had previously – Kpebu
46 minutes -
Ghana Gas pays courtesy call on NPA CEO
56 minutes -
Extradition of Ken Ofori-Atta would be complex, protracted legal battle – Martin Kpebu
1 hour -
Ofori-Atta’s health could influence any U.S. extradition decision – Martin Kpebu
1 hour -
Free Speech development in Ghana today and its implications for media development
2 hours -
NACOC to commemorate International Day against Drug Abuse and Illicit trafficking
2 hours -
Dafeamekpor calls for AU early warning system against Xenophobic violence
2 hours -
South Africa risks undermining its moral authority through Xenophobia – Dafeamekpor
2 hours