--NUM leadership at mine to discuss workers' demands for new
leadership
--Julius Malema, expelled ANC youth leader to visit KDC
Monday
--Company said it used stockpiles last week to produce gold but
output will be cut from Monday because Of the strike
(Adds union comment details throughout.)
By Devon Maylie
JOHANNESBURG--Precious metals producer Gold Fields Ltd. (GFI)
said Monday that the illegal strike at its KDC Gold Mine was
continuing and company officials are meeting employees to try to
help settle the workers' demand for changes to local union
leadership.
This is the first strike at a gold operation in South Africa,
where platinum producers have already seen a series of illegal
strikes following the violent protests at Lonmin PLC's (LMI.LN)
Marikana platinum mine that left 44 dead. Lonmin workers were
continuing a strike that began Aug 10.
The situation has been enflamed by expelled African National
Congress Youth League leader Julius Malema, who has been visiting
mines to call on workers to strike for better conditions. He is due
to visit KDC Monday to speak with workers, a spokesman for Mr.
Malema said.
At the heart of many of the strikes is frustration over living
conditions and wages, but another factor is the battle for
membership between the well-established National Union of Miners
and its emerging rival, the Association of Mineworkers and
Construction Union.
The AMCU said Friday that it has nothing to do with the strike
at Gold Fields, but that it has received calls from workers there
asking the union to come speak to them.
About 12,000 workers at the Gold Fields mine on Johannesburg's
West Rand have been on strike since Wednesday night.
KDC produced 1.1 million troy ounces of gold in the year ending
December 2011. The KDC east operation produces 1,660 ounces of gold
a day. The company said it was using stockpiles last week to
produce gold but from Monday output will be cut because of the
strike.
Gold Fields, South Africa's second largest gold producer,
reiterated Monday that it believes the illegal strike at KDC isn't
related to the problems at Lonmin but is due to an internal NUM
problem.
Gold Fields said it's in talks with the local NUM leadership and
striking employees and is seeking a meeting with the minister of
mineral resources.
"It appears that the strike is the result of an internal dispute
between the local branch leadership of the National Union of
Mineworkers and certain employee groupings within the NUM
membership, who are demanding the resignation and replacement of
local NUM branch office bearers," Gold Fields said.
NUM spokesman Lesiba Seshoka said a team of NUM leaders are at
the mine and want to carry out an investigation before removing the
local leadership.
Gold Fields was granted an interdict to bring the strike to an
end but said Monday it's trying to avoid using it and instead is
speaking with workers.
"While we have the right to proceed with the implementation of
the interdict, our preference at this stage is to assist the NUM
leadership to resolve their internal conflict peacefully and in a
manner that would not put at risk the employment and livelihoods of
12,000 people," said Peter Turner, executive vice president and
head of Gold Fields' South Africa region.
Shares at 0944 GMT were up 0.71% at 101.75 South African
Rand.
Write to Devon Maylie at devon.maylie@dowjones.com
(Ian Walker in London contributed to this report.)
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