Replies to post #135 on PHLX Gold/Silver Sector (XAU)

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To:Bear who wrote (152)
From: John Barendrecht Wednesday, Jun 25, 1997 1:09 AM
Respond to of 79915

Grootvlei gold mine may cut jobs
JOHANNESBURG, June 24 (Reuter) - Grootvlei Proprietary Mines Ltd said on Tuesday that ``some fairly drastic measures'' were needed to return it profitability, including possible job losses.

The company said it had invited union representatives to a meeting on June 26 to discuss the mine's financial difficulties.

General manager Neal Fronemen said Grootvlei had been hit by a lower gold price, rising costs and reduced output, compounded by a shortfall of 11 million rand between its pumping costs and its government subsidy over the next financial year.

Various ways of cutting costs were being evaluated.

``This may involve retrenchment or redundancy of a number of employees,'' Froneman said in a statement.