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THE introduction of continuous operations at Johannesburg Consolidated Investment’s HJ Joel gold mine played a major part in pulling the Free State operation back from the brink.
Human resources director Andre Geldenhuys says Fulco has led to a 20% jump in employees on core operations – an additional 400 jobs – improved productivity and higher output. A 7% fall in unit costs is directly linked to Fulco, Geldenhuys says. The workers’ reward is a 15% premium on their wages.
The assumption that Fulco means more work is wrong, he adds. “The mines work continuously, the people do not.” Workers have fewer, though longer, consecutive shifts because the staff complement has grown.
The life of the mine can be extended, depending on the physical structure and capacity of the mine.
Joel is a relatively new operation, but has struggled since it started to make a profit.
Its shareholders have been called on several times to bail the operation out. Its latest recapitalisation has been sold on the basis that the mine has a revised development plan, far greater working efficiency, and that it will sell forward years of its output to ensure a revenue stream while it develops new ore.
The mine reported its second consecutive profitable quarter in the three months to September, as costs fell to R36,805/kg from R40,807/kg in the three months to June. It wants to cut costs to around R30,000/kg by next year.
Geldenhuys says Fulco’s use should not be limited to marginal mines. He too believes management and labour should hold a summit to revisit what Fulco should be all about.
“The whole concept needs a mind-set change. It shouldn’t only be used when a mine is in trouble. It should be done much sooner.”