Harmony Works With Unions to Keep Jobs at Mine

18 May 2010 (Last Updated May 18th, 2010 18:30)

Harmony Gold Mining has entered into an agreement with unions to continue operations at one of three loss-making South African shafts in an effort to protect jobs. Last month Harmony Gold said it would close all three of the Virginia mine's underperforming shafts - Harmony 2, Merriespruit

Harmony Gold Mining has entered into an agreement with unions to continue operations at one of three loss-making South African shafts in an effort to protect jobs.

Last month Harmony Gold said it would close all three of the Virginia mine's underperforming shafts - Harmony 2, Merriespruit 1 and Merriespruit 3 - cutting 3,700 jobs.

Harmony, however, has since agreed with the National Union of Mineworkers, UASA and Solidarity to continue operations at the Merriespruit 1 shaft.

Under the agreement, certain sections of the shaft will continue to operate provided they don't make losses for two consecutive months and total costs remain under R250,000 ($33,750) per kilogram of gold.