/ 22 March 2005

DRDGold to apply for North West liquidation

Workers at DRDGold’s North West operations arrived at work on Tuesday to find the gates locked ahead of the company’s application for provisional liquidation of that section, trade union Solidarity said.

”The only people who will be allowed to work, according to DRD, are essential services, which include the Duff Scott Hospital, emergency services and the people who are responsible for pumping water out of the shafts and ventilation.”

The group has announced that it will apply for the provisional liquidation of its North West Operations following the passing of a resolution by the board of directors of Buffelsfontein Gold Mines Limited, known as the North West Operations.

Solidarity said that workers were told they will receive their salaries at the end of March but no guarantees could be given on accumulated benefits.

They would stay at home for the expected 45-day duration of the provisional liquidation investigation.

”The liquidation plans will come as a big blow to the community of Stilfontein,” said spokesperson Reint Dykema.

About 6 500 mineworkers are employed at the affected mines.

”The latest news that DRDGold is going to be liquidated is no surprise to us,” said the National Union of Mineworkers.

”Instead this announcement only consolidates our viewpoint that the management of DRDGold is not fit to run these operations.”

The group was more interested in its Australian operations and would only run down the South African operations, a statement from NUM general secretary Gwede Mantashe said.

”It is time that someone else takes over these mines and run them efficiently and effectively, because having this company doesn’t help employees and the country at large. In fact if we could, we would have sold DRD[Gold] a long time ago”, Mantashe said.

The union has already called on the Department of Minerals and Energy to revoke the group’s mining licence.

The mine was conducting an operational review in the face of losses exceeding R270-million in the six months to 31 December.

Shortly after that review was announced, the company’s Hartbeesfontein mine suffered seismic activity and aftershocks that killed two miners and left parts of nearby Stilfontein damaged.

Two shafts were closed while inspections were carried out leading to a drop in production of 30%. – Sapa