Gold Fields unbundling long time coming - CEO
Gold Fields CEO Nick Holland on Thursday said the unbundling of Gold Fields will ensure its longevity.
JOHANNESBURG - Gold Fields CEO Nick Holland on Thursday said the unbundling of Gold Fields was discussed long before the recent wage strikes occurred.
He was speaking to Talk Radio 702/567 Cape Talk's Bruce Whitfield about the company's decision to spinoff its two oldest mines because of high operating costs and a dwindling product output.
The KDC mine near Johannesburg and the Beatrix mine in Bloemfontein will be renamed Sibanye Gold.
The company will be listed on the Johannesburg Stock Exchange in February 2013.
Holland said they were "liberating" the companies and "setting them free" to increase their existence.
"The current model is not going to be sustainable in this country. If the companies stay as they are, there are going to be companies that compete with capital requirements."
Gold Fields is the world's fourth-largest bullion producer.
It was recently hit by wage strikes, which brought operations to a near standstill.
"This concept was thought of long before the strikes. I have been looking at the profile of the assets for the last four years. It has been a point that has been commented on for quite some time.
"It is not about South Africa. It is about the nature of the assets and the particular skills we need to drive the value out of each of the companies," Holland said.
He said the new companies will now be led by new focused teams who will focus on reviving them to survive in the mining sector.