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Mineral Resources Minister Mr Gwede Mantashe has noted with concern the decision by mining company Gold Fields to go ahead with its restructuring plans, without due regard to processes in the Mineral and Petroleum Resources Development Act (MPRDA).

Minister Mantashe met with Goldfields CEO and his executives yesterday, where he was briefed on the company’s plans, and the Minister requested the company to follow the processes outlined in Section 52 of the MPRDA, prior to embarking on any retrenchments.

“We are beginning to notice a worrying trend where some mining companies do not meaningfully engage with the Department on their restructuring plans, and only brief us as a mere formality or tick-box exercise, ignoring processes outlined in the law which are binding to every mining right-holder,” Minister Mantashe said.

“To this end we will be initiating a follow-up meeting with the Minerals Council, to take forward our discussions when we met two weeks ago, on how we can together address investment, growth, employment and youth challenges facing the sector and economy. It is our view that the spirit in which Gold Fields is engaging contravenes the agreed approach and the laws governing the sector,” the Minister added.

The Minister is therefore appealing to the company to engage meaningfully with the Department and the labour unions in this matter, in the interests of the sustainability of the sector and the economy.

Issued by Department of Mineral Resources