Gold Fields says South Deep job cuts a last resort as minister lashes out

|About: Gold Fields Limited (GFI)|By:, SA News Editor

Gold Fields (GFI -2.8%) says it has acted in good faith and that the planned cuts of ~1,100 employees, 30% of its workforce, at its South Deep mine are a "last resort."

The statement follows comments yesterday from Mineral Resources Minister Mantashe that GFI had not acted in good faith in talks with the government about the job cuts, in a setback for negotiations aimed at ending a weeks-long strike.

GFI has "merely engaged in a tick-box exercise for compliance purposes," Mantashe said after a meeting with company execs including CEO Nick Holland and representatives of the NUM union.

The miner says South Deep had been losing more than R100M per month prior to the restructuring, which resulted in fewer job cuts than would have been necessary otherwise.

Meanwhile, GFI says it recently engaged with NUM on a proposed settlement agreement aimed at resolving the strike at South Deep; the union has until the end of this week to accept the proposed settlement.

Subscribe for full text news in your inbox