[miningmx.com] — GROOTVLEI and Orkney mines would be sold to anyone with a viable offer, according to liquidator Enver Motala, after the High Court again postponed the final liquidation of Pamodzi Gold’s assets on Friday.
Motala said he requested the North Gauteng High Court for another extension – which was granted until August 16 – arguing that the interests of no party would have been served if the final liquidation was to go ahead immediately.
He said proceeding with the liquidation would have closed the mines and killed any chance to secure better proceeds for creditors, or employment for some of the workers. The mining rights would have reverted to the state as well, lessening the value of the assets further.
“The request for extension wasn’t made to suit Aurora (Empowerment Systems, the preferred bidder),’ Motala said. “I made it clear that if there is another dealer, I can do any transaction.’
Aurora has been struggling to secure finance for the acquisition of the mines since it was appointed as the preferred bidder and manager of Pamodzi Gold’s assets in October 2009. At the time, it offered R390m for Grootvlei and R215m for Orkney.
The company has since been mired in controversy related to shootings, environmental pollution and flooding as well as the non-payment of salaries, while its founders – Zodwa Mandela and Khulubuse Zuma – have been accused of not being held to account because of political and family connections.
Motala said Aurora was still in negotiations with a Chinese backer. He said Aurora had already received a letter of intent, followed by a bank letter and board approval.
He said 90% of a due diligence process had been completed, while the investor was also awaiting approval from China’s State Council to proceed with the deal.
“We will not wait until August,’ said Motala. “If they do not make progress by May, early June, we would consider other options.’
“MAFIA SOAPIE’
The National Union of Mineworkers (Num) said the postponement was nothing other than a “disguised lifeline’ to Aurora.
“The court was supposed to decide not on the final liquidation process but to decide whether Aurora is able to have guarantees and continue to run the mines or not,’ read the statement. “The Num is disappointed that the whole scenario fits a mafia soapie in which none of the government departments nor the courts are able to reach a conclusion.’
Num said it was still hoping for Aurora to be sidelined, and for the appointment of a new liquidator in Motala’s place.
Num also attached a letter from Aurora’s commercial director Thulani Ngubane dated March 2 to the statement, in which Ngubane ordered workers to vacate Orkney’s premises.
“A decision has been taken by the board or directors of Aurora Empowerment Systems that all staff members should vacate the premises of the mine Aurora Orkney Operations with immediate effect,’ read the letter.
“Due to the unruly behaviour of all Num members, we have concluded that we are stopping pumping and other related activities of care and maintenance of the mine.
“The only person allowed on the premises is namely Garth Ellis (general manager) and his security personnel; anyone who undermines this instruction, the full extent of the law will take its course.’
Ngubane’s phone was switched off when approached for comment.
