More Than 1,000 Workers Lose Jobs at Gold One South African Mine

More than 1,000 workers at the Modder East mine operation of Gold One International's South African mine have been terminated from their jobs as an aftermath to their week-long illegal protest action.

In a statement released to the Australian Securities Exchange on Tuesday, Gold One International dismissed a total of 1,035 employees from the mine after workers staged an unprotected strike action on June 3.

"Gold One International Ltd advises that on 11 June 2012, the company dismissed approximately 1035 employees from its Modder East Operation following their participation in illegal strike action last week," the company said.

The Modder East unit has a total workforce of 1,800 employees.

Gold One International maintained the protest action was unprotected because it broke a three-year wage agreement which both parties signed in April 2010.

"Management considered the representations made against dismissal and concluded that, in almost all cases, there were insufficient mitigating factors against the sanction of dismissal," the company said in a statement on Tuesday.

The company likewise added it continues to operate the mining and milling operations of the Modder East unit, albeit on limited capacity, as well as continue processing surface stockpile sources. Other contingencies have also been put in to make sure the mine continues to earn, it added.

In 2011, the Modder East Operation produced a total of 123,179 ounces of gold.

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