GOLD FIELDS RESTRUCTURING
NICK HOLLAND: Retrenchments at South Deep are a last-gasp measure
In authorising the announcement on Tuesday of a large-scale restructuring of its South Deep operation, the Gold Fields board and management are painfully aware that it will not be welcomed by most of SA — the government, including the regulator; trade unions; communities around the operation; and the public. It has been clear from reactions to similar announcements by other mining companies in the past that there is a general public perception that companies like ours make these decisions on a whim and with little or no regard for the social dislocations they cause. We are fully aware of these consequences. We know that a cutback in operations would exacerbate existing levels of poverty, inequality and unemployment in the communities around South Deep and generally lead to a reduction of economic activity in the area. These consequences spread into the broader economy too, of course, and affect people’s lives, which means the decision to release the announcement on Tuesday was not t...
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