A strike by gold miners at South Africa’s Simmer & Jack Mines will result in revenue loss of more than R1,8-million per day, the firm said on Friday.
About 4 500 underground miners at Simmers’ Buffelsfontein mine stopped work on Wednesday night in a wage dispute.
The National Union of Mineworkers said they were seeking a wage hike to R2 400 per month from R2 000, but the company was offering R2 200.
The company says under its offer, basic wages would rise over two years to R2 450, but including benefits, gross remuneration would rise by 22% to R4 520.
Negotiations were due to continue on Friday, spokesperson Gail Strauss said.
The Buffelsfontein mine produced 78 396 ounces of gold during the six months to end September 2006. The operation was reopened by Simmers after being closed by DRDGOLD because it was loss-making.
Simmers’ shares, which have gained 45% so far this year, fell 1,92% to R7,16 shortly after the opening, compared to a 0,97% drop in the gold mining index on lower gold prices. – Reuters