Pamodzi's Grootvlei mines finally sold - Solidarity: Orkney transaction hangs in the balance

Gold One and Goliath Gold are heroes who have brought hope for thousands of former Pamodzi and Aurora mineworkers of the Grootvlei mines, trade union Solidarity said today. This comes after these companies today conditionally agreed to purchase the liquidated Pamodzi Gold's Grootvlei mines for R70 million. According to Solidarity, this transaction will not only lead to a revival in the East Rand's mining industry, but also help to restore international investors' confidence in the South African mining industry.

According to Gideon du Plessis, Deputy General Secretary of Solidarity, the Aurora tragedy could have been averted if Gold One and Goliath Gold had been involved in the transaction sooner. "Gold One is now faced with the huge task of getting the Grootvlei mines operational again. Their takeover of the mines will also contribute greatly to combating illegal mining in the area. Solidarity is excited over the prospect that job opportunities will be created at the mines soon. Solidarity is heartened by the fact that the companies have already indicated that former Aurora and Pamodzi employees will get preference when employees are hired."

Meanwhile, Solidarity has already started negotiations with the new employers to obtain collective bargaining rights. "We have come a long way with the former employees of Pamodzi and Aurora and in order to ensure they are protected in the new era as well, we are engaged in talks with the new employers."

Solidarity further made a serious appeal to the Pamodzi liquidators to urgently conclude the sale of the Orkney assets. However, the trade union questions the suitability of the current prospective buyer of these assets, China African Precious Metals (CAPM). "It appears that CAPM is beginning to follow in Aurora's footsteps of nonpayment. The company has already defaulted on its electricity bill. In addition, CAPM's security services provider recently suspended its services to the company owing to nonpayment. An alternative buyer is the only option. We cannot allow the tragedy to be repeated for a third time," Du Plessis said.

Statement issued by Gideon du Plessis, Deputy General Secretary: Solidarity, April 18 2012

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