FRIDAY, 11.30AM
JOHANNESBURG Consolidated Investments, SA’s first black-owned mining company, is to be split into thrre smaller companies: a parent holding company, a gold company, and a non-gold commodities firm, according to a letter to staff from chairman Mzi Khumalo.
In the letter, Khumalo said the purpose is to create management structures to ensure a focus ojn core business. “It has become even more clear, especially in this period of weak commodity prices, that we must cut costs in order to ensure the profitability and future growth of our operations,” Khumalo said.
Although JCI’s board has yet to finalise the new structure, Khumalo’s letter explained that the company will be split into three. The first will be a “small corporate parent” providing strategic direwction to the underlying businesses without involving itself in operational matters. A gold division will be created to house the Western Areas, Randfontein Estates and HJ Joel gold mines, while a third division will be a “multi-commodity company”.