The National Union of Mineworkers (NUM) says junior miner Simmer & Jack Mines is “ready” and has resources and skills to take over DRDGold’s mining operations in the North West province.
NUM North West regional secretary Hoyce Pundulu said the union believes that former workers of DRDGold will be in goods hands if Simmer & Jack takes over Buffelsfontein and Hartebeesfontein mines, compared with the other bidders.
Pundulu added that labour is convinced that thousands of mineworkers left without jobs in the North West might soon be redeployed.
Simmer and Jack Mines was on Tuesday named as the preferred bidder for DRDGold’s former North West province gold mines.
Three offers were made for the Hartebeesfontein and Buffelsfontein gold mines, which are being sold as a going concern.
Pundulu pointed out that both labour and the liquidators voted unanimously in favour of the Simmer & Jack mine plan to create 3 600 jobs and extend the mines’ operation by another 10 years.
The company had also been given the go-ahead to re-mine gold reserves in Pilgrim’s Rest.
Simmer & Jack Mines has offered to buy the estate for R45-million.
The other two offers came from a grouping called Golden Pond, formerly known as the South African Women in Mining Association, which was being assisted by DRDGold and businessman Eric Molefe’s New Mining Corporation Gold.
“Simmer & Jack will finally engage with liquidators and organised labour on labour issues and assets prudence. There will be discussions on the terms and conditions for the 3 600 workers the company intends to take over from DRDGold,” Pundulu said.
He added that this depends on whether Simmer & Jack can operate under the auspices of liquidators until the high court takes a final decision on June 28.
The company expects to return the Buffelsfontein and Hartebeesfontein mines to profitability by radically changing the cost structure of the mines and eliminating the mining of low-grade ore, Miller said.
Simmer & Jack hopes to produce 235 000 troy ounces of gold a year from the Buffelsfontein and Hartebeesfontein mines.
The production from the two North West mines will be added to the 10 000 oz a year that Simmer & Jack produces from its Mpumalanga mines. In addition, the company is expanding its output at its Mpumalanga mines to 50 000 oz a year.
The company is also in the process of buying Harmony Gold’s Randfontein Estates number-four shaft, Miller said. — I-Net Bridge