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Union contests Harmony mine closures-report

Mon Nov 16, 2009 3:33am EST

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JOHANNESBURG Nov 16 (Reuters) - South Africa's biggest union is considering legal action against Harmony Gold (HARJ.J) over its plans to close some mines, which could axe about 2,000 jobs, the Business Report newspaper reported on Monday.

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The paper said the National Union of Mineworkers (NUM) was seeking legal advice over court action after Harmony served the union with a closure notice for some of its facilities.

"We have taken the documents to our attorneys and it will depend on how they advise us," NUM spokesman Lesiba Seshoka told the paper.

Harmony, the world's fifth biggest gold producer, said last week it would likely close relatively small mines with about 35-50,000 tonnes of low grade ore output per month within the next six months as a result of high operational costs due to a strong rand currency . [ID:nLB211694] (Reporting by Shapi Shacinda; Editing by Keiron Henderson)



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