THURSDAY, 11.30AM
MINING house Johannesburg Consolidated Investments has split its gold mining operations into two independently managed companies as part of a move to become a diversified operating company.
Executive director Brett Kebble said the company’s gold division will be split according to principles of quality and quantity, thus the low-cost, high-quality Western Areas South, West Rand and HJ Joel will br grouped, while the low-margin, high-volume Randfontein Estates, Western Areas North and Lindum Reefs will be grouped under the Randfontein Estates banner.
Western Areas and Randfontein Estates will retain their listings on the Johannesburg Stock Exchange, while Western Areas will be used to develop JCI’s gold interests in the rest of Africa, Australia and Asia.
Kebble said JCI will continue to hold shares in the new companies, but the percentages will be determined by the details of restructuring. He added, however, that JCI will supply no management services to the two new gold divisions and management contracts will be cancelled. A small management contingent will be employed at each new division, while the remaining management staff will be among 160 employees to be retrenched.