[miningmx.com] – THE closure of two shafts at Blyvoor would not
negatively affect the sale of the asset to Village Main, said the mine’s current owner,
DRDGold which added some 1,800 jobs would be affected.
DRDGold “has resolved to suspend all further mining at Blyvoor’s low-grade number
four and six shafts with immediate effect,” the company said in a statement.
This was at the recommendation of Blyvoor’s board of directors. DRDGold owns a 74%
stake in the Blyvoor gold mine, south of Carletonville, in Gauteng.
“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,” it said.
Blyvoor had given notice in terms of section 189(3) of the Labour Relations Act to
trade unions the National Union of Mineworkers and Uasa. The unions and Blyvoor
would begin a 60-day process to try and seek consensus on job cuts.
“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,” DRDGold said.
“Both shafts failed to respond to turnaround efforts since the introduction of business
rescue proceedings in the second half of last year.”
Blyvoor had undergone business rescue proceedings in terms the new Companies Act
since June after DRDGold said it would no longer finance Blyvoor, which had needed
about R80m to keep going until the end of 2011.
