South Africa Gold Fields, Harmony mines hit by strike
Loading...
Wednesday, July 16, 2008
South Africa's gold mines owned by Gold Fields and Harmony were shut on Wednesday as thousands of mineworkers downed tools and went on strike.
The strike in the Northern Cape, Mpumalanga and Free State provinces, were part of a drive by the Congress of South African Trade Unions (COSATU) and its allies to pressure the government to limit price increases in Africa's biggest economy.
Wednesday's strike is the second in a string of rolling protests, that will arrive at a national strike on the 6th of August. When the country's mines along with other business are expected to grind to a halt.
Gold Fields spokesman Daniel Thole reportedly said that the group's Beatrix mine in the Free State province was hit by the strike, shutting two of Beatrix's three shafts. The mine produces a total of 46 kg (1,624 ounces) of gold per day, but he couldn't say how much output would be lost.
Amelia Soares, a spokeswoman for Harmony, said the group's operations in the Free State were "extensively affected". Harmony's Virginia operations, which were shut down by a safety strike on Tuesday, had closed for a second day running, with losses estimated at 30-35 kg of gold per day.
She said output at other mines in the province, including Target, Bambanani and Tshepong had been hit by around 50 percent of workers staying away, and this may have disrupted normal production.
Harmony also said its Evander mine in Mpumalanga, which normally produces 20 kg of gold daily, was not producing after 3,800 workers downed tools to join in the protest.
The 320,000-strong National Union of Mineworkers (NUM), the biggest affiliate of the labour federation Cosatu, has vowed to take part in the series of rolling strikes called by the federation this month to protest against a jump in inflation.
"We have had an almost total closure of mines in the Free State, Harmony and Gold Fields mines have been affected, and in the other provinces our members have come out strongly to support the strike," A NUM's spokesperson has reported.
Anglo Platinum, the world's top producer of the precious metal said it did not have mines in any of the three provinces affected by the strike. The No. 2 ranked Impala Platinum said its Two Rivers mine in Mpumalanga were unaffected.
Anglo American Plc's South African coal unit, Anglo Coal, reported varying degree of absenteeism at its eight coal mines in the Mpumalanga province due to the strike, but a Johannesburg-based spokesperson added that all the operations were so far running smoothly. De Beers, the world top producer of diamonds and 45 percent owned by Anglo, also said its operations in the Northern Cape and Free State provinces were running smoothly.
A spokesperson for De Beers in Johannesburg, said there was only "very minimal" impact at its underground Finch mine, where some of the workers also downed tools.