JOHANNESBURG (miningweekly.com) – New sale in liquidation notices have been published for the troubled Orkney, Consolidated Modderfontein, Grootvlei and Nigel gold mines and associated assets, previously owned and operated by Pamodzi Gold, which was provisionally liquidated in April 2009.
The notices, which were advertised in Business Day on Tuesday, follow only weeks after a new team of liquidators moved to oust controversial black economic-empowerment mining group Aurora Empowerment Systems from the mines. The ousting followed on from the decision of the Department of Justice to remove lead liquidator Enver Motala, of SBT Trust, as well as KPMG’s Gavin Gainsford.
Aurora is headed by chairperson Khuinput moisture raymond milllubuse Zuma, MD Zondwa Mandela and director Michael Hulley. Zuma is the nephew of incumbent South African President Jacob Zuma, Mandela is the grandson of former President Nelson Mandela and Hulley is President Zuma's attorney.
The new notices have been published by the joint provisional liquidators Corporate Liquidators, Westrust, Sizwe Business Recoveries and Icon Insolvency practisteel mills directory south africationers, as well as by the transaction adviser Standard Bank.
The provisional liquidators indicated that the reopening of the sale process for the seven Orkney shafts and associated infrastructure, located in Klerksdorp, 175 km south-west of Johannesburg, would proceed through a tender process. The notice stated that the property is estimated to have resources and reserves totalling 12.4-million, of which 2.4-million ounces have been identified for futureglass crusher price in zimbabwe mining.
Similar tender invitations have been opened for the Consolidated Modderfontein, Grootvlei and Nigel mines and associated infrastructure, located on the edge of the East Rand basin of the Witwatersrand basin, and on properties extending in a south-easterly direction from Benoni towards Nigel and Heidelberg. The resources and reserves across the three properties are estimated at more than 4.8-million ounces.
The liquidators have indicated that they will invite expressions of interest and identify potential buyers. These bidders will be given an opportunity to conduct a due diligence process, after which the liquidators will solicit final, binding offers.
The tender process will be conducted over a ten-week period and expressions of interest should be submitted to Standard Bank's Sandra du Toit by 17:00 on June 30, 2011.
The drawn-out liquidation process, which saw Aurora sustained as the preferred bidder despite it having failed to secure the necessary finance on a number of occassions, has led to much criticism, as well as social upheaval that has reportedly affected some 40 000 people.
There have been reports of illegal asset stripping at the properties, as well as illegal mining activity, which has resulted in several altercations with security companies and even some deaths. Water pumping at some of the operations has also not been continuing, which has led to flooding of workings, affected some neighbouring mines and raising pollution fears.
Throughout the long period, the nonpayment of workers has resulted in repeated condemnation by the National Union of Mineworkers (NUM) and Solidarity.
In fact, it reached a point where Congress of South African Trade Union general secretary Zwelinzima Vavi called government to launch an investigation into the dismissed liquidators and the politically connected Aurora. “Companies like Aurora have no place in a democratic South Africa,” Vavi said at a recent NUM gathering.
Representatives of gold miner Shandong of China, which were identified by Aurora as financial backer, were meant to take a decision on buying Grootvlei and Orkney. However, they were reportedly put off by the turmoil surrounding the liquidation process.
Aurora’s attempt to obtain a JSE listing in order to trigger the release of R750-million from the company’s Swiss funder, Global Emerging Markets (GEM), also failed to materialise. Prior to GEM, funds were initially promised but later not forthcoming from Malaysian equity company AM Capital.