[miningmx.com] — CREDITORS are sharpening their teeth for the directors of embattled mining company Aurora Empowerment Systems.
Aurora has been given until Monday to vacate the Pamodzi mines in Orkney and Springs. The directors include President Jacob Zuma’s nephew Khulubuse Zuma and Nelson Mandela’s grandson, Zondwa Mandela.
If Aurora does not restore the mining operations at the mines to what they were before they started running it, as stipulated in the interim trading contract, Aurora faces claims of at least R100m in damages for plundering the mines.
“It is going to be open season for the creditors,’ Gideon du Plessis, deputy general secretary of Solidarity, said yesterday. “Aurora owes Eskom R56m, AngloGold Ashanti R50m, workers R12m and Rand Water millions.’
Aurora’s woes increased tenfold this week while the firm was entertaining possible Chinese investors.
On Monday two of the six liquidators – Enver Motala and the head of KPMG’s liquidation division, Gavin Gainsford – were dismissed as liquidators shortly after Solidarity applied for a liquidation order of R3.1m against Aurora.
On Friday, liquidators ordered Aurora to leave the mines by Monday.
Thulani Ngubane, commercial director of Aurora, said yesterday: “It’s a loss for the country, especially when we have the (possible) investors here. It puts us in a weaker position.’
Ngubane said while the company would vacate the mines by Monday, it was looking into the legality of the order.
Aurora has until the end of the month to oppose the liquidation application, otherwise the matter would be heard in the North Gauteng High Court on June 7.
“In the event of a liquidation, we will ask for an insolvency inquiry to be conducted, which is likely to lead to criminal charges against Aurora’s directors for reckless trading and mismanagement of the mining assets,’ Du Plessis said.
