South African GOLD miner plans to cut 1,600jobs

South African mining firm Sibanye Gold Thursday said it plans to cut up to 1,600 jobs in restructuring aimed at reducing costs and boosting productivity.

The recently formed company said it would review its "entire business in order to extend the productive lives of its operations and ensure sustainability."

"The proposed restructuring could result in up to 1,600 jobs being affected," said a statement.


The Johannesburg Stock Exchange listed company was established early this year after the unbundling of Gold Fields assets.

"Through this proposed restructuring, we see significant potential for increasing economically recoverable reserves, by reducing overhead costs and improving operational efficiency," said chief executive Neal Froneman.

Since the beginning of the year, several mining houses have threatened to cut jobs, following sporadic wildcat strikes over higher wages.

This week, labour unions rejected the gold industry's 5.5 percent wage hike offer after lengthy negotiations.

Workers belonging to the radical Association of Mineworkers and Construction Union (AMCU) demand wage adjustments of more than 100 percent.

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