Sello Rasethaba’s empowerment company, Matodzi Resources, has offered to take over Durban Roodepoort Deep’s ailing gold mines, Hartebeesfontein (Harties)
and Buffelsfontein (Buffels), in the North West province.
“DRD has warned it might close the mines because they are losing money. We believe we can take those assets, manage them properly, return them to profitability and save 13 000 jobs,” Rasethaba said on Tuesday.
Rasethaba said he had written to DRD’s chief executive Mark Wellesley- Wood, offering to take over the assets for a token payment of one rand.
“Obviously there are working capital requirements including the covering of current loss making production, however, it is our view that we will be able to return the operations to profitability very soon. JCI is prepared to provide us with the necessary funding and will offer technical support.
“The mines have reserves of around seven million ounces. We believe that if managed properly the mines can have at least a 10 year life span.”
He said a key strategy would be to mend fences with labour at the mines and return to the successful approach of Roger Kebble’s days at DRD when a pact with labour saw the workers share the success in boom times as compensation for low wages when conditions were tough.
“We are encouraged to take the step of trying to acquire Harties and Buffels because we know that when Roger Kebble’s team was in charge at DRD, they acquired Harties and paid off the purchase price in two quarters. This was at a time when the gold price was substantially lower than it is today,” said Rasethaba.
“We view the proposed transaction as a sound investment providing we can restore harmonious labour relations and we believe labour will see our offer as a means of saving jobs, the dawn of a new and more equitable profit-sharing pact and a way to ensure their future for at least a decade.”
Rasethaba noted that if DRD did close the mines they would be very difficult to reopen. “This is because the infrastructure rapidly deteriorates if it is not used and it becomes increasingly expensive to maintain,” he said. – I-Net Bridge