DRDGold to cut jobs

2012-02-06 11:10

Gold producer DRDGold could cut up to 1 800 jobs when it stops mining two shafts at the embattled Blyvoor operation.

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 today.

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.

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 of the new Companies Act since June after DRDGold said it would no longer finance Blyvoor, which had needed about R80 million to keep going until the end of last year.

In November, DRDGold announced it had accepted an expression of interest from mining company Village to buy its stake in Blyvoor for R150 million.

DRDGold said it had told Village about the decision to stop mining the two shafts and was “of the view that the proposed sale will not be negatively affected by it”.

DRDGold said the pumping of underground water from the two shafts would not be affected by the cutbacks for the time being.

“Production from Blyvoor’s surface recycling circuit and at its principal number five 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,” the company said.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.