(Ecofin Agency) - JSE and LSE-listed company Pan African Resources confirmed yesterday May 2, it would suspend activities at its Evander 8 underground gold mines by the end of this month, cutting 1, 700 jobs.

The company indicated that it concluded a consultation process with the relevant stakeholders. Moreover, an internal and external review of the mine revealed that “there is no realistic prospect of mining on a sustainable and profitable basis from this operation in the current weak rand gold price environment”.

CEO Cobus Loots indicated that this was not an easy decision given the country’s socio-economic situation and the impact on a large number of employees.

“All South African gold producers have been adversely affected by the recent strengthening of the rand, and it is imperative that we act decisively to ensure the future of our group and stakeholders that rely on our operations,” he said.

However, the retrenched employees could be granted new job opportunities from the mining group which indicated that it was identifying opportunities in lower-cost operations, especially Elikhulu tailing project.

Louis-Nino Kansoun