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South Africa: Harmony Gold stops operations after mining accident deaths

Friday, February 7, 2014



(Reuters) – South Africa’s Harmony Gold stopped all its operations for a 24-hour safety shift on Friday after at least 8 workers were killed in a rock-fall and fire, the worst accident in South Africa’s mines in nearly 5 years.

In addition to the accident at its Doornkop mine near Johannesburg, South Africa’s third-largest bullion producer said 2 other workers had died in separate incidents at different mines on Thursday.

Mining Minister Susan Shabangu said the incidents showed that companies had to do more to improve safety in South Africa’s mines. Despite safety improvements since the end of apartheid, more than 100 miners die on average each year.

“It is really an indictment on the safety in the mining industry, especially in Harmony Gold,” she told Johannesburg radio station Power FM.

Harmony Gold’s share price fell 3.35 percent to 28.8 rand (US$2.61) in early trade, adding to Thursday’s losses of nearly 4 percent amid concerns about a prolonged safety shut-down at Doornkop, which produces nearly 10 percent of the company’s bullion.

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