The head of the National Union of Mineworkers Union (NUM) legal section said the recent rally in gold should be reason enough for the mine to reconsider. "The gold price seems to be steady around $300 so we expect the mine to halt their intended retrenchment at least for the time being to see where the price will be going," the NUM's Molefe said. Evans said the mine would not change its mind. But if the economics of production at the Western Areas mine improved, then retrenchedemployees could be recalled. Some 430 workers had already been given voluntary redundancy packages, he said, adding that 40 per cent of senior management and 18 percent of middle management were laid off in July.

The joint venture was also aiming to reach a cash cost target of $200 an ounce by the year-end to ensure adequate funding for its new South Deep gold mine project. "It's going very well. It is ahead of schedule and it is under budget. The South Deep shaft is now the world's single deepest haul shaft," Evans said. The shaft was currently 2.5 kilometres deep and would eventually extend to three kilometres. "The underground development of the South Deep ore body is also ahead of schedule and under budget. We feel confident that the South Deep gold mine will be in full production in March 2002," he added. The mine will produce 750,000 ounces a year at $185 an ounce, but the mine will largely be mined mechanically with the ore body on average about 60 metres thick and in places 100 metres thick.