[miningmx.com] — GOLD One International says it will take up to four
weeks before its Modder East mine returns to full production, following the dismissal
of 1,035 workers due to an illegal strike last week.
The company was granted a court interdict on Wednesday to prevent further
protests at the mine and is now in the process of assembling a new workforce. The
initial strike was held under the banner of the Professional Transport Allied Workers
Union (PTAWU) – a union which is not recognised by Gold One.
National Union of Mineworkers (NUM) spokesman Lesiba Seshoka told
Miningmx on Thursday the union was in talks with Gold One over the lot of
some of the dismissed workers.
“Our members were threatened and had stones thrown at them,’ Seshoka said. “It is
very sad. Of course, those who threatened and intimidated should be dealt with.
“This intimidation is happening all over the country now. Mining companies should
provide security for people who want to go to work.’
Gold One CEO Neal Froneman said the company was aware of the intimidation, but
found almost no mitigating circumstances for those workers who have been
dismissed.
“It is not a foregone conclusion that people will be rehired,’ he said. “If people break
the rules they have to live with the consequences.’
He said the company was not in any rush to make new appointments and that
Modder East remained profitable from the current limited mining and milling
operations.
“Realistically, it could take another four weeks before we’re back to full production,’
he said.
EZULWINI
Froneman said Gold One would take over ownership of Ezulwini once the
Competition Commission has authorised the deal, expected before month-end. The
transfer would not involve a Section 11 process, as Gold One is buying Ezulwini’s
holding entity.
A Section 11 process would follow a future empowerment transaction though. Gold
One generally concludes BEE deals at asset level.
One candidate who has put up his hand for such a deal is Mandla “Bear’ Kumalo’s
Kumvest. The company last weekend offered a competing bid for Ezulwini before it
was turned down by First Uranium’s board of directors.
“I’m a mining investor,’ Kumalo said. “My interest is in the orebody and we are keen
to talk to the new owners of the asset.”
Ezulwini would, for now, be integrated with Gold One’s neighbouring Cooke
operations. Froneman said the only capital spending on Ezulwini would be on the
development of the ore body and some finishing touches to the gold and uranium
plant.
“Bringing Ezulwini up to speed won’t be a month-long process,’ said Froneman. “Like
the Randfontein assets, it will take us a year or two.’
