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South African Gold Mine Strike

Written By Brian Hicks

Posted September 11, 2012

As of the night shift on Sunday September 9, employees of KDC Gold Mine’s West section in South Africa have gone on strike, Gold Fields Limited (NYSE: GFI) announced, calling the strike “unlawful and unprotected.”

Production at KDC West has ceased, as almost 15,000 employees are part of the strike. Gold Fields’ South Africa Region and KDC senior management is on-site and negotiations are ongoing.

From the Sacramento Bee:

Peter Turner, Executive Vice President and Head of Gold Fields’ South Africa Region, said: “At this stage the reason for the strike remains unclear but we hope to gain clarity as soon as possible. The situation on the mine has been calm and peaceful since the start of the strike and we appeal to all stakeholders to continue to act with restraint and to engage in good faith. It is important that we restore normality in a peaceful manner and as soon as possible.”

The company hopes to resolve matters quickly. Gold Fields is one of the world’s largest unhedged gold producers, with annualized production reaching 3.5 million gold equivalent ounces. It operates eight mines in Australia, Ghana, Peru, and South Africa.

It currently has four major projects in development, and has total gold equivalent mineral reserves amounting to 80.6 million ounces, with overall mineral resources of nearly 217 million ounces.