Combative mining magnate Roger Kebble has taken on Bobby Godsell and AngloGold Ashanti as well as the Department of Water and Forestry (DWAF) over water pumping obligations in the Stilfontein basin.
In a statement on Thursday evening, Kebble said he and his co-directors are willing to step down from control of the dormant mining company in favour of new appointees nominated by Godsell.
”The board of directors of Stilfontein Gold Mining Company Limited [Stilfontein] will support the appointment of new directors nominated by AngloGold Ashanti [Anglo]. If Anglo does not nominate new directors then the Stilfontein board will resign,” the statement said.
”This follows moves by the DWAF and Anglo to have the Stilfontein directors held in contempt of court after DWAF and Anglo moved to oppose the liquidation of Stilfontein,” the statement explained.
”Should AngloGold Ashanti fail to nominate any directors, the current board of Stilfontein will resign, leaving it to Stilfontein shareholders to nominate new directors,” Kebble amplified.
Kebble said the directors of Stilfontein — he, Hennie Buitendag, Gordon Miller and Brett Kebble had discussed the DWAF threat and AngloGold Ashanti’s opposition to the liquidation.
He said they decided that their only course of action was to resign.
”We could not legally or morally continue as directors,” he said.
Kebble said by resigning, they also laid to rest the allegation that because three of the Stilfontein directors are also directors of Simmer and Jack, they might influence Stilfontein decisions in Simmer and Jack’s interests.
”It is well known that Simmers is attempting to save the mines in the basin that DRDGold abandoned. By resigning we are distancing ourselves from any decision where conflict of interest could be alleged,” said Kebble.
He said as former directors they would have no control over Stilfontein decisions.
”Our advice is that AngloGold Ashanti should be entrusted with the role of directing the company. If it can generate the funds for Stilfontein to pay for the pumping costs then it will have done all the other mines in the area a considerable service,” he said.
Kebble said Stilfontein had no choice but to go into liquidation because it could never pay the estimated R1,8-million a month the Johannesburg High Court ordered it to contribute to pumping costs in the Klerksdorp, Orkney, Stilfontein and Hartebeesfontein (Kosh) basin.
”Stilfontein has been a dormant company for more than a decade,” said Kebble.
”It has no business operations or income and its only assets are used for pumping. Independent legal advice concluded that it would be reckless for the directors to cause Stilfontein to incur liabilities which it could never pay.”
Stilfontein concluded a pumping agreement with Hartebeesfontein in 1991 to ensure that pumping continued for the benefit of the entire Kosh area.
Stilfontein became an administrative company and the vehicle through which administration relating to the pumping agreement was channelled. This was its only purpose. The mine ceased all operations in the early 1990s and played no part in pumping water from the basin since then.
”This is common knowledge in the industry,” said Roger Kebble.
”The mine is long dead and ordering it to pay pumping costs is like ordering a fallen soldier to return to the battle. It ain’t going to happen.”
Kebble said he could not understand DWAF’s reasoning in ordering Stilfontein to pay for the pumping.
”I am not sure if the Department is misguided or misled but it has got it wrong. DWAF should focus on the huge problem of extraneous deep mine water which is a threat to all gold mining companies.
Forcing a dormant company into liquidation is not going to resolve that problem. There is a solution — the creation of a water utility to serve the local community, which Stilfontein has proposed and which we support. For example, we have suggested putting the pumping assets into this water utility at zero cost.”
The resignation by the Stilfontein directors follows the liquidation of DRDGold’s North West operations on March 22, 2005.
DRDGold’s Buffelsfontein operation had been covering pumping costs in order to protect operations at its own mines in the area.
This was in terms of an agreement entered into in 1991.
The DWAF has ordered the pumping costs of the mining basin to be split equally between mining companies Harmony, Stilfontein, Anglo, and Buffelsfontein (in liquidation).
An initial directive did not include Stilfontein, however, a second directive, issued on 7 May 2005, ordered Stilfontein to share the pumping costs.
Kebble said that Stilfontein was asking the DWAF to review this directive. – Sapa