Crown strikers return to work
08 October 2009
Johannesburg, South Africa. 8 October 2009. DRDGOLD Limited (JSE: DRD; Nasdaq: DROOY) announced today that a wage-related strike by some 500 employees in the National Union of Mineworkers (NUM) recognition unit at the Crown Gold Recoveries (Crown) surface retreatment operations of its 74%-owned subsidiary, DRDGOLD South African Operations (Pty) Limited (DRDGOLD SA), have returned to work.
Crown’s three plants in the Johannesburg area all reported normal attendance from the start of today’s day shift, following the NUM’s acceptance yesterday of an 8% across-the-board basic wage increase and a gold profit sharing scheme, in terms of which employees can earn up to an additional 7.0%.
The Crown operations have all continued to operate since the strike began on 16 September 2009, thus its impact on production is expected to be well contained.
At DRDGOLD SA’s East Rand Proprietary Mines (ERPM) operation, where underground mining has been discontinued, the NUM accepted a 4% across-the-board basic wage increase last week.
At DRDGOLD SA’s Blyvooruitzicht (Blyvoor) operation, management is awaiting the NUM’s decision on its offer of a minimum 8% wage increase, rising to up to 15% for certain job categories, together with the gold profit share scheme. Meanwhile, strike action at Blyvoor, now in its fourth week, continues.
DRDGOLD’s estimated daily gold production loss due to strike action is some 320 ounces, almost entirely from Blyvoor’s deep-level underground mining operation. Blyvoor’s surface operation continues to function.
South Africa & North America
James Duncan, Russell & Associates
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Investor and Media Relations
Phil Dexter, St James’s Corporate Services
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