GFIELDS: 7,878 +169 (+2.19%)
South Africa's Gold Fields plans to slash jobs in mine restructure
(Adds detail, quotes, background)
JOHANNESBURG, Aug 14 (Reuters) - South Africa's Gold Fields
said on Tuesday it plans to slash costs at its
struggling South Deep mine, including cutting 1,100 jobs, or
around 30 percent of its workforce.
South Deep, the company's last South African asset, has
faced operational obstacles in a tough geological setting 3 km
(2 miles) below the surface. The mine made a loss of 337.6
million rand ($27 million) in 2017.
Gold Fields shares opened 3 percent lower at 47 rand per
The bullion producer, which has invested 32 billion rand in
the operation since acquiring it in 2006, said it could no
longer sustain losses at the mine, which has missed several
production targets despite significant modernisation.
"The key challenge has been the difficulty in transitioning
the mine from one run with a conventional mining mindset and
practices to mining with a modern, bulk, mechanised mining
approach," Gold Fields said in a trading update.
The firm also said it expects headline earnings per share
for the six months ended 30 June 2018 to be unchanged at $0.08
per share compared with the previous reporting period.
(Reporting by Tanisha Heiberg
Editing by Joe Brock)
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