Sibanye GoldLtd. said July 11 that it will enter into talks with unions andemployees regarding its loss-making Cooke 4 underground mine and Ezulwini gold-uranium processingplant in South Africa, in a bid to avoid shuttering the operation.
Over the past 17 months, Cooke 4 has continued to fall shortof production targets and to accumulate losses.
The company is now considering efforts to improveproductivity and reduce cost structures.
"It is unfortunate that, despite the joint efforts ofstakeholders, the Cooke 4 operations have been unable to meet requiredproduction and cost targets and has continued to operate at a loss,"Sibanye's CEO for its gold division, Wayne Robinson, said.
The company still remains positive about the future of themines.
The company acquired the assets from in May2014.
Sibanye previously entered into an initial consultationprocess for the mine in September 2014 due to operational underperformance and,in November 2014, its stakeholders agreed to implement specific measures toreturn to profit and minimize job losses.