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Mines minister concerned about Gold Fields job cuts

Gwede Mantashe says some companies are were not ‘meaningfully engaging’ with department on their restructuring plans.

South Africa mines minister said on Tuesday he was concerned by bullion miner Gold Fields’ plan to cut around 1 100 jobs without due regard to processes outlined in the Mineral and Petroleum Resources Development Act.

Mineral Resources Minister Gwede Mantashe said some companies were not meaningfully engaging with the department on their restructuring plans but “only brief us as a mere formality or tick-box exercise.”

Read: Gold Fields plans to slash jobs in mine restructure 

Gold Fields said it would cut around 30% of its workforce at its South Deep mine, soon after Impala Platinum announced plans to slash about a third of its workforce. 

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Since Gwede knows how to run a business…oh wait he is a communist

Mining in SA is finished. The End and so goes the ‘resources windfall’ for the future thanks to Gwede and his stupid minions

Well this is simply what happens when you completely ignore the concerns of people who actually know what they are doing. Mining is a tricky business and loading it up with unrealistic socialist type policies along with tons of red tape means they can’t compete globally. Consumers of commodities don’t care about the mining charter, they care about price.

Like the ANC is “meaningfully engaging” with people on the “expropriation of land” issue. The ANC announced its intention to amend the constitution before the last hearing was even held and before they even worked through the more than 100,000 submissions received.

South Deep mineral resources in Dec 2017 was 66Moz at 5.4g/t. It is stunning that one of the worlds largest and highest grade gold deposits is valued at zero by Morgan Stanely. This is probably optimistic and it should be valued at less than zero (Cash flow=-R100m/month). Mantashe should pause to think how this could be and what it means for the South African gold mining industry. If you cannot make money with this resource base then there is no future for underground mining in South Africa. The Minister’s response is to complain that due process is not being followed.

“RMB Morgan Stanley said the mine had no value in its net present value calculation for Gold Fields as a whole, but it also comprises 73% of the company’s attributable reserves – an observation perhaps underpinning Holland’s reluctance to sell the mine”

”The marvelous thing about a joke with a double meaning is that it can only mean thing”

Ronnie Barker (1929-2005)

”meaningfully engaging”

Nationalization of mines, will start long before ”restitution of land without compensation”

Don’t blame Gold Fields for looking to ”cut their losses”

….and the poor miners that will loose their jobs, will most probably be in dire straights and on the streets- for life!

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