/ 13 July 2005

Cheers as Stilfontein mine opens again

There were cheers on Wednesday as Simmer & Jack mine bosses got operations going again at the newly acquired Stilfontein mine in the North West.

Simmer chairperson Roger Kebble ordered the switching-on of the mills at the metallurgical plant at the mine.

”Vula! Vula! Vula!” Kebble shouted from a walkie-talkie as the mills were switched on. Vula means ”open” in isiZulu.

”Nothing gives me greater pleasure than to see the mills turning again,” said Kebble. ”It has been far too quiet for far too long.”

”Last week, we negotiated an interim agreement with the provisional liquidators, which saw Simmer take on the holding costs and lay the groundwork for the resumption of underground operations — which is where the majority of the workers will be employed,” said Kebble.

Simmer CEO Gordon Miller said he is confident that all parties are committed to fast-tracking the process to ensure full-scale operations resume as soon as possible.

”We are in the process of finalising the purchase agreement with the liquidators. Once that’s done, we can apply for Competitions [Commission] approval and to have the mineral rights transferred to Simmer & Jack.

”I have no doubt that all parties concerned are committed to accelerating this process and it is my hope that we will have the green light to resume underground operations by the end of August,” said Miller.

Deon van der Mescht, the man tasked with turning the operations around, said that at its peak, it is projected that the operations will produce about 230 000 ounces of gold a year over the next 10 years and employ 3 800 people.

He added that while a strong local currency is one of the major threats to marginal operations such as Hartebeesfontein, of far graver concern is the fact that a workable solution to the costs of pumping at Stilfontein has yet to be found.

”Simmer is an independent company — it has nothing to do with Stilfontein, nor will it be acquiring Stilfontein or its mine health and safety responsibilities. This will now have to be resolved among ourselves and the other operators in the area.

”We will contribute our share to the costs of the pumping, but it is imperative that a long-term solution be found that can survive long after all the mines in the area have closed,” said Van der Mescht.

He called on all the operators in the area to work towards a constructive solution to the extraneous mine water that does not involve burdening the South African taxpayer.

DRDGold liquidated the Stilfontein mines after an earthquake in March in which two miners were killed.

About 6 500 workers were left without jobs.

Simmer bought the mines for R45-million, although this is still subject to approval by, among others, the Competition Commission.

Van der Mescht said Simmer will start hiring people to work at the mine from next week.

”We will start small, but before Christmas we hope to have 3 800 people employed,” he said.

About 2 300 families were left destitute after the closure of the mine.

The families have been fed by unions and members of the public.

According to the labour union Solidarity, it costs R200 000 every two weeks to feed the families.

The Unemployment Insurance Fund will start making payments to the miners from August 23.

The gold-mining industry is in its ”sunset phase. It is critical to show that we can revive some of these old girls,” Van der Mescht said. — Sapa, I-Net Bridge