Gold Fields, the world’s fourth-largest gold producer, estimates that South African mine closures due to fatalities last week have cost it about 300kg (or close to 10 582 ounces).
Kloof was closed last Monday after a fatality stopped production. The restriction preventing the company from operating until the workplace was secured was lifted by the Department of Minerals and Energy on Thursday evening.
Driefontein was effectively closed for a day following a fatality on Wednesday.
Speaking during an interview on SAfm on Friday evening, Gold Fields CEO Nick Holland said the company lost about three days of production — 75kg, or 2 645,5 ounces a day — at Kloof.
“All in all we probably lost about 300kg for the week, which obviously is a major cost to the company,” Holland said.
“I think it demonstrates that doing things safely and safer is actually an investment because when you have these accidents, you have stoppages. And of course it’s correct to have stoppages to analyse and do risk assessments et cetera. But it tells you it’s worth spending the money on safety because the cost of accidents is much greater,” he said.
He pointed out that the combination of the dollar gold price and weakening rand means the company’s South African operations — if momentum picks up and production is built up again — can capitalise on higher prices.
“I think we can make good money for shareholders and for all stakeholders and get Gold Fields back to generating cash flows. And that’s what we want to do in the short term,” said Holland.
At 1.20pm on Monday, shares in Gold Fields were trading 5,09% or R3,45 lower at R64,30 on the JSE. — I-Net Bridge