Blyvoor gives notice of Section 189 (3) process to consider employee reductions
06 February 2012
DRDGOLD shareholders are advised that, following a recommendation from the Board of Directors of its 74%-owned Blyvooruitzicht Gold Mining Company Limited (“Blyvoor”), it has resolved to suspend all further mining at Blyvoor’s low-grade Number 4 and 6 Shafts with immediate effect.
Pursuant to this resolution, which may impact on up to 1 800 employees of the mine, Blyvoor’s management has given notice in terms of Section 189 (3) of the Labour Relations Act to the National Union of Mineworkers and UASA of a 60-day process to seek consensus on the possible cutbacks.
These measures follow a decline since April 2011 in recovery grades to below cut-off at the two shafts, which are used mainly to pump water from underground to surface and into Blyvoor’s surface recovery circuit. Both shafts failed to respond to turnaround efforts since the introduction of business rescue proceedings in the second half of last year.
For the time being, pumping of underground water from the two shafts will not be affected by the cutbacks.
Production from Blyvoor’s surface recycling circuit and at its principal No 5 production shaft; from which it plans to access an additional 400 000 ounces it is seeking to acquire from AngloGold Ashanti’s Savuka Mine – are also not affected by the decision.
DRDGOLD has notified Village Main Reef Limited – with whom DRDGOLD is currently in negotiations for the disposal of its stake in Blyvoor – of its decision, and is of the view that the proposed sale will not be negatively affected by it.
6 February 2012