Gold Fields to unbundle its SA mines
Gold Fields Mining South Africa to unbundle and move some SA mines to Sibanye Gold Limited.
JOHANNESBURG - Gold Fields Mining South Africa, the world's fourth largest gold producer, has decided to unbundle its South African mines moving it away from its global operations.
Its mines in South Africa - The KDC and the Beatrix mines will now move under a newy created gold mining company called Sibanye Gold Limited.
The new company will get its own listing on the Johannesburg Stock Exchange and the New York Stock Exchange next year.
Gold Fields CEO Nick Holland has been warning of job losses and said the company was severely impacted by the strike action.
After a review of the operations locally, shareholders said they wanted a restructuring.
Gold Fields has assured though that there will be no job losses with the unbundling.
In a statement issued on Thursday morning, Gold Fields said the unbundling would free the SA operations from the costs associated with a global company on a worldwide exploration and development program.
But analysts believe the decision was taken to please shareholders and investors that were worried about ongoing labour issues in the country.
The company lost over R2 billion in revenue and 34,000 oz. of gold output in the third quarter.
It also warned that it will report a loss of over 100,000 oz. of gold in the 4th quarter.
Strike action in the mining industry has cost the economy R10 billion.
The South Deep Gold mine will remain under Gold Fields, but the rest of the local operations will now fall under Sibanye Gold Limited.
Shares in Gold Fields shot up close to 7% on the JSE following the news.
Sibanye Gold Limited is expected to list in February.