SIBANYE Gold has announced that its Kloof mine on the west Rand of Johannesburg has resumed production after deliberations with National Union of Miners (NUM).

In an official statement, the miner – a spun off from Gold Fields – disclosed that it will commence operations soonest and will increase its utilization capacity to over 80 percent.

“Together with the Driefontein Operations, which have continued to operate normally through the strike, Sibanye Gold will now operate at over 80 percent of its planned capacity,” said Sibanye Gold in a statement to the JSE.

The South African-based company’s stock fell an estimated 6.7 percent on Monday, the most in more than a week in Johannesburg trading and the biggest intraday decline since August 23.

Gold-mining companies, who have been grappling with falling prices and rising costs, had failed to meet demands for wage increases of as much as 60 percent, offering to raise pay by 6 percent to 6.5 percent for about 142,000 workers.

NUM said last night it was considering a new offer from employers and Sibanye has now confirmed those notions, claiming that an annual wage settlement may not be far away.

“The market will be kept informed of further progress,” said Sibanye Gold of its Free State province mine.