[miningmx.com] — Simmer & Jack Mines said on Monday it might cut almost a third of the workers at one of its underperforming mines, to put pressure on costs at the mine, which has producing less gold than planned.
The company said in a statement it could cut employees at its Buffelsfontein Gold Mine (BGM).
“BGM is considering retrenching approximately 1,200 employees of the some 3,700 workforce at the mine. Consultation with the recognised trade unions, the National Union of Mineworkers (Num), Solidarity and UASA regarding the possible retrenchments has begun and will take place over a 60-day period,” it said.
The planned retrenchents could face stiff resistance from unions at a time when labour relations in the country’s key mining sector are strained.
“We have heard rumours that Simmer & Jack is planning to retrench, but we will oppose any retrenchment that is on the cards,” said Lesiba Seshoka, spokesperson for Num.
Num has threatened strike action against South African coal and zinc miner Exxaro over the planned retrenchments of 300 workers but a court order has halted that for now.
Simmer & Jack is in the process of merging with Village Main Reef so it is keen to move on the restructuring front.
