DRD faces bid
By Stewart Bailey
Harmony Gold Mining said it might bid for two mines closed last month by smaller rival DRDGold after what its chief executive said was a request by South Africa`s largest labour union to rescue the operations and 6 000 jobs.
Last month, DRDGold liquidated a unit and closed two mines after an earthquake wrecked infrastructure and the rand`s gains against the dollar made them unprofitable.
The mines pay R85 million a year for pumping to keep them from filling with water.
`We`ll take the union up on its request to look at the DRDGold mines, once the rules are made clear,` Harmony said yesterday.
Harmony, the second-largest producer of South African gold, has increased production sixfold in 10 years by purchasing unprofitable mines, cutting costs and changing strategy to return the operations to profit.
It has made four consecutive quarterly losses as the rand`s gains cut profits.
Harmony closed down 44c at R47.56 in Johannesburg yesterday. DRDGold closed up 5c at R5.45. The gold sector declined 0.97 percent.
Published on the web by Business Report on April 8, 2005.
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