Shares in Gold Fields are down about 6% after the mining firm announced plans to slash costs at its struggling South Deep mine.
As part of its plan, the bullion producer warns its likely to cut around 1,100 jobs. That’s about 30% of its workforce.
South Deep, the company’s last South African asset, has faced operational obstacles in tough geological setting three kilometres below the surface.
Spokesperson Sven Lunsche explains: “We operate on around 6,000 people. But we’ve been trying for years through different shifts and brought in foreign experts, but we’re not in the position to the right side the mine yet. We’ve had numerous interventions and failed to do so.”
The announcement comes just a week after Impala Platinum warned it may have to cut 13,000 jobs.