Strike-hit Goldfields announces S.Africa shake-up

29th November 2012, Comments 0 comments

Leading gold mining group Goldfields announced on Thursday that it was spinning off a chunk of its South African business into a separate company, following months of labour unrest.

The company, the world's number five gold producer, said in a statement that its KDC and Beatrix gold mines, which had been crippled during recent mining unrest, would now form a new company called Sibanye Gold.

CEO Nick Holland said the separation would "liberate Sibanye Gold," to become a "fit-for-purpose, sustainable gold mining company."

The company did not announce any job redundancies with the decision, which will both limit the exposure of Goldfields global shares to future South African unrest and give Sibanye managers a freer hand to restructure.

Many observers and senior industry executives have warned that labour unrest and demands for higher wages will spell future job cuts.

Goldfields will retain control of the South Deep Gold Mine in South Africa.

© 2012 AFP

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