2nd UPDATE: AngloGold Mineworker Killed In Mudrush In S Africa

8th Jul 2010 15:47

(Adds detail, government and union comment.) By Robb M. Stewart Of DOW JONES NEWSWIRES JOHANNESBURG (Dow Jones)--A mineworker has been killed in an underground mudrush at one of AngloGold Ashanti Ltd.'s (AU) gold mines in South Africa, adding to the number of deaths in the country's mining industry this week alone. A worker at AngloGold's Tau Lekoa mine southwest of Johannesburg was caught in a mud slide Wednesday afternoon, the company said. Rescuers recovered the body the next morning, and an inspection of the operation by the government has been launched, spokeswoman Joanne Jones said. Safety has become a driving issue for mining companies in the country, although government statistics show there have been improvements despite criticism from trade unions. The government regularly suspends operations to investigate accidents, putting further pressure on companies. The Tau Lekoa accident follows the death Tuesday of five contract workers at Aquarius Platinum Ltd.'s (AQP.AU) Marikana platinum operation in South Africa's North West province. The Bermuda-registered company said preliminary assessments suggest a block of rock weighing about 500 metric tons suddenly fell in one of the mine's shafts, burying the workers. Operations at the shaft have been suspended and the government has ordered among other things an investigation into the cause of the rockfall, an audit of rock conditions, and retraining of employees. Stuart Murray, CEO of Aquarius, said the incident is the worst in the company's history in South Africa. He said prior to the accident, Marikana has completed the equivalent of 18 months without a fatality. There has been a spate of accidents in mines across the country in recent months, bringing to 65 the number of mining deaths since the start of the year, compared with 84 in the same period last year. The Congress of South African Trade Unions this week called for an urgent government review of safety measures in the industry. The Department of Mineral Resources will investigate the accident at Marikana and said ground falls of this magnitude raise questions about the design of shallow- to medium-depth platinum mines. The country has some of the world's deepest mines, with some gold mines operating more than three kilometers underground. Four members of a rescue team were killed in an explosion at Harmony Gold Mining Co.'s (HAR.JO) Phakisa mine near Welkom last month, and although the company hasn't identified the cause of the blast it has said "booby trap" explosive devices similar to those used by illegal miners were found near the scene some two kilometers underground. Earlier in June, a worker was killed by falling rock deep below the surface at the same mine. Seven miners were injured earlier in June after two quakes struck Gold Fields Ltd.'s (GFI) Driefontein mine, prompting the company to temporarily suspend operations at the affected shaft. "We need serious intervention from both the state and the mining industry," said Peter Bailey, chairman for health and safety at the National Union of Mineworkers. "Workshops alone cannot help resolve the spate of mining accidents. Action should speak louder than words." He said the union is demanding "stiff action" from the government to tackle the number of deaths in the mining industry. The mineworkers' union staged a one-day nationwide strike in December 2007 to highlight the industry's high level of fatalities, crimping production in a country that ranks as the largest producer of platinum. Safety took on additional resonance in October that year when about 3,200 workers were trapped deep underground for more than a full day at Harmony's Elandsrand mine southwest of Johannesburg. The workers were evacuated without any serious injuries, but the incident prompted former President Thabo Mbeki to order a safety audit of the country's mines. -By Robb M. Stewart, Dow Jones Newswires; +27 11 783 7848; [email protected] (END) Dow Jones Newswires July 08, 2010 10:47 ET (14:47 GMT)