Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Gold One International Takes Firm Action At Ezulwini

Mid-tier miner Gold One International (ASX: GDO, JSE: GDO) has provided another update to the market this morning on the company's Ezulwini Operation in South Africa.

Gold One has issued suspension notices to illegally striking workers at its Ezulwini operation, after repeated requests for workers to return to work were ignored.

Gold One President and CEO Neal Froneman comments: "I am disappointed that despite numerous requests to return to work, both before and after the award of the interdict, our employees have chosen to be in contempt of court and are acting without any regard for the rule of law.

"We are therefore without any option but to suspend these striking employees."

The company obtained an interim interdict from the Labour Court of South Africa on 2 October, in terms of which the industrial action that began on 1 October 2012 was declared unprotected and unlawful.

The court ruling also interdicted striking workers from participating in further industrial action. Employees on suspension have been invited to make representations on 5 October against dismissal, in accordance with the company's disciplinary code.

The South African Police Service is maintaining a strong presence at the operation to ensure that there are no acts of intimidation or violence.


The company's flagship Modder East gold mine, commissioned in 2009 differentiates itself from most other gold mines in South Africa owing to the shallow nature (300 to 500 metres below surface). Production is continuing to ramp up having produced 123,179 ounces of gold in 2011.

At the beginning of 2012, Gold One expanded further with the acquisition of the Cooke 1, 2 and 3 Underground Operations and the Cooke surface assets (Randfontein Surface Operations) located in the West Rand, 30 kilometres from Johannesburg.

Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.