/ 22 May 2008

DRD Gold says production hit by xenophobia

There had been production setbacks at DRD Gold’s ERPM operation in Primrose on the East Rand due to violent attacks on foreigners, who make up 38% of the workforce, the gold producer said on Thursday.

Spokesperson James Duncan said fewer foreign nationals had been reporting for work since Monday and the mine was in a ”loss-making situation”.

”Fourteen percent were absent from work on Monday and [this] deteriorated to 60% on Wednesday. However, the number improved by 58% today [Thursday],” said Duncan.

”The longer the violence continues, the more profound [the] impact on production will be.”

The death of one Xhosa speaking miner was confirmed by the police on Tuesday, he said, adding that the company was very sympathetic to the situation foreigners found themselves in.

The worker died from a gunshot wound. There were also unconfirmed reports of other fatalities related to the violent outbreaks among the mine’s workforce, said Duncan.

He added that most miners do not live in mine hostels, but rather take ”living out allowances” and find accommodation in areas like Boksburg.

”It’s been difficult for management to make contact with them. It appears as if they’ve been displaced and have looked for shelter wherever they can find it.”

The company was also assisting those workers who had come forward by providing alternative accommodation, food and blankets.

Some workers wished to remain but wanted their families to return to their home countries. Others wanted to leave South Africa, added Duncan.

Management was assisting them with cash advances. – Sapa