Heat Treat Industry News

April 27, 2010

Harmony to close three shafts at Virginia

After "careful" review, Harmony Gold Mining Co said it will close three of its shafts that form part of the Virginia operations in the Free State, affecting about 3,700 employees.

The closure is in line with Harmony’s stated strategy to restructure for quality ounces, thereby improving its asset mix, the world’s fifth largest gold producer said.

"These assets have no remaining payable reserves and their closure has begun," the company added. The closing shafts include Harmony 2, Merriespruit 1 and Merriespruit 2.

With regard to the affected employees, Harmony said "steps to be considered may include transfers to other operations in the group, portable skills training and early retirement."

The company said that employee representatives have been informed of the closures and management would embark on a formal consultation process with them.

Chief executive officer Graham Briggs said: "While these operations have been in existence for almost 60 years and are very much part of Harmony’s history, we have taken a thorough, informed decision that they have reached the end of their lives."

"We have indicated for some time that marginal, loss-making operations would have to close for the company’s greater good," he added.

Source: Mining Journal

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