Media releases

DRD holes Blyvoor 2000 project and Mothballs two loss-making shafts

Details

Published: Wednesday, 08 March 2000 02:00

Johannesburg, 8 March 2000 – Durban Roodepoort Deep said today the holing between Blyvooruitzicht and Doornfontein mines had been successfully effected, keeping its Blyvoor 2000 project on schedule. Johannesburg, 8 March 2000 – Durban Roodepoort Deep said today the holing between Blyvooruitzicht and Doornfontein mines had been successfully effected, keeping its Blyvoor 2000 project on schedule. The project has the potential to double Blyvoor’s underground gold production and reduce its costs by more than $50 per ounce.

At the same time it said two loss-making shafts at the Durban Deep mine west of Johannesburg – the No 7 shaft and Circular Shaft – had been forced to close by the recent heavy rains and the termination of operational synergies with neighbouring Randfontein Estates.

The rapid influx of water following the recent high rainfall into the Durban Deep mines has burdened the shafts with increased de-watering costs and group chief executive Mike Prinsloo said 7 Shaft and Circular Shaft would continue making losses with this additional burden and without the benefits of the Randfontein synergies.

About 500 contract labourers have been given notice and management has entered into discussions with the unions and associations regarding 170 mine employees employed at the shafts. Seven Shaft and Circular Shaft together produced about 55 kilograms of gold a month, or 1.9 percent of the DRD group’s total production.

The DRD group currently produces in excess of 1.2 million ounces of gold a year.