Simmer & Jack Mines (Simmers) said on Wednesday it has signed employment agreements with three unions as part of its bid for DRDGold’s North West operations.
Simmers, the preferred bidder for the liquidated mining operations in Stilfontein, has entered into agreements with Solidarity, the South African Electrical Workers Union and the United Association of South Africa .
Simmers is still negotiating with the National Union of Mineworkers.
”We are particularly pleased with the progress made in forming a pact with organised labour as we are all working towards the same end: Namely relieving the plight of affected workers by giving them the opportunity for gainful employment,” said Simmers CEO Gordon Miller.
One of the conditions in Simmers’ bid for the North West operations, comprising Buffelsfontein and Hartebeesfontein mines, is an agreement with organised labour.
DRDGold placed the mines in liquidation in March, leaving 6 513 workers jobless.
Under the new conditions of employment, Simmers will employ at least 3 800 workers, the company said in a statement.
As soon as an agreement was reached with the liquidator, Simmer will be ready to recommence mining.
Miller said Simmers was negotiating with the liquidators to resume mining operations as quickly as possible.
The company estimated that the operations could be profitably mined for at least another ten years.
Miller said once the operation was re-opened, Simmers will be able to contribute its share to the pumping costs of underground mine water. – Sapa