A merger between Harmony Gold Mining Company and Pamodzi Gold Free State has been conditionally approved, the Competition Tribunal said on Friday.
The condition requires Harmony to adhere to the terms of an existing agreement that it entered into with the National Union of Mineworkers (NUM) and Solidarity, the tribunal said in a statement.
As a result of the provisional liquidation of Pamodzi Free State, there were job losses of approximately 3 000.
However, Harmony had an agreement with the NUM and Solidarity on the phased re-employment of 2000 people over the period of a year.
The tribunal said an objection had been lodged against the merger by Virgile Mining Corporation, on the grounds that Virgile’s offer would not result in unemployment.
The Harmony offer would result in the loss of about 1 000 jobs.
In addition, Virgile argued that it was unfairly treated in the tender process.
The tribunal said it had invited Virgile to make oral representation at the hearing.
However, on Friday morning it received an email from Virgile CEO Hettie Fourie that the company would not be present.
”Harmony representatives advised the tribunal at the hearing that they had received notification from Virgile that they were no longer opposing the transaction,” the tribunal said.
It said that in terms of the sale of assets agreements, Avgold intended to acquire the gold mining, processing and related business carried out by Pamodzi Free State under the name of President Steyn North Division, which included the operation of the North Steyn Shafts.
The President Steyn South Division would be directly acquired by Harmony and the President Steyn North Division would be directly acquired by Avgold, a wholly owned subsidiary of Harmony.
On completion of the transaction the business of Pamodzi Free State — consisting of both the President Steyn south and north divisions — would be controlled by Harmony and Avgold, the tribunal said. — Sapa