Saturday 1 September 2012

Goldfields Workers in Wildcat Strike at South Africa KDC Mine

Worker discord in South Africa's mining heartland has spread to the country's second-largest gold producer Gold Fields Ltd. (GFI.JO), the company said Friday.

Around 12,000 workers at the KDC mine on Johannesburg's West Rand have been engaged in a wildcat strike since Wednesday night, with the loss of two day shifts and two night shifts, the company said in a short statement.

The strike is the first to affect a gold mine since a series of violent protests broke out at Lonmin PLC's (LMI.LN) Marikana platinum mine three weeks ago.

Goldfields said the strike may stem from disputes between different organized labor groups on the mine. Similar ructions between established and emerging trade unions have been blamed for violence at Lonmin's Marikana mine, where police opened fire on protesters two weeks ago, killing 34 people.

"Based on informal feedback from employees, the strike appears to be related mainly to disagreements within organized labour and related structures on the mine, although we cannot confirm this," said Peter Turner, head of Gold Fields South Africa.

Gold Fields' management has been granted an urgent interdict to bring the unlawful and unprotected strike to an end, the company said.

KDC produced 1.1 million troy ounces of gold in the year ending December 2011.

Gold Fields shares were trading 4.8% lower on the day as of 1123 GMT, at ZAR9.90.

Write to Resources Desk at resourcesdesk@dowjones.com

Copyright ? 2012 Dow Jones Newswires

Source: http://feeds.foxbusiness.com/~r/foxbusiness/markets/~3/2ixowTuNQTk/

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