Harmony mine may close amid ‘lawlessness’

2013-01-07 12:53

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Harmony Gold will keep its Kusasalethu mine closed while it considers whether to continue its operations there or begin retrenchments, the company has said.

Harmony said it had started a process under Section 189 of the Labour Relations Act which may result in the closing of the Kusasalethu mine and possible retrenchments.

“Management is of the view that the status quo concerning production and labour strife will remain, as it has exhausted all possible avenues to achieve normal production and cannot find a solution to the current state of lawlessness prevailing,” Harmony said in a statement today.

The miner said it had a “legal and moral” obligation to secure the safety of the employees at the mine.

“These legal and moral obligations have been severely undermined to the point that it has become an impossible task given the unlawful and violent events during the December 2012 quarter,” the company said.

The miner said the closure and retrenchments would be avoided if an agreement could be reached to end the labour unrest that plagued the mine in December.

These negotiations to re-open the mine and avoid retrenchments would have to result in a “lasting and sustainable” solution.

“Should the aforesaid goal not be achieved by means of a consultation and discussion process then the company will have no alternative but to continue and conclude the Section 189 process which might lead to the indefinite closure of Kusasalethu and possible retrenchments,” Harmony said.

The company generated R134 million in profits from the Kusasalethu mine in the third quarter of 2012.

However, because of the mine’s labour woes, the cash flow for the December quarter fell into the red for a R150 million loss as Kusasalethu achieved only 22% of its planned gold production.

“Should the current poor performance continue, then the situation at Kusasalethu is dire for the rest of the 2013 financial year and into the future,” the company said.

In December, more than 1 000 employees staged an underground sit-in at the mine demanding that their fellow employees, who had been suspended, be reinstated.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24


Rugby World Cup 2015

All the action from the 2015 RWC, including live coverage of all 48 matches, breaking news, fixtures, results, logs - and much more!


Rugby World Cup 2015

iPads the secret to Japanese RWC success
England's early exit bad for RWC business
Boks change 2 for USA clash
Farrell: Lancaster should stay
Traffic Alerts

It is time to focus on your daily rhythm. Are you putting too much attention on future projects and neglecting the day to day...read more

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.