JOHANNESBURG (miningweekly.com) – South African gold producer DRDGold on Thursday denied that it had received R100-million in government assistance, while it had recorded a profit of over R320-million in the current financial year.
This followed claims by the National Union of Mineworkers (NUM), which on Wednesday said about 2 000 of its members would march to the Department of Labour “to demand government intervention at DRDGold’s East Rand Proprietary Mine (ERPM)”.
The JSE-listed gold producer swheeled cone crusher plantuspended all underground drilling and blasting operations at the mine on November 4, owing to pumping problems.
“At a time when ERPM management is engaging all stakeholders, including the NUM, in earnest and commicost benefit analysis iron ore crushing planttted consultation on the future of the mine, it is disappointing that the union feels it necessary to deliberately disseminate inaccurate and misleading information into the public domain,”cone crusher for sale in nigeria commented DRDGOLD CEO-designate Niël Pretorius.
He said that, during the past four years, the cost of pumping water from underground at ERPM to manage the level of the Central Witwatersrand Basin in the national interest has exceeded R40-million a year.
“We have received, on average, during this period government pumping assistance of R8-million a year, the balance of an average of R32-million a year being borne by ERPM’s shareholders,” he noted.
Further, Pretorius said that ERPM had completed a necessary plugging project to seal its only producing shaft, the Far East Vertical Shaft, from rising underground water at a total cost of R34-million, of which government had contributed R22-million.
He noted that government had only given the company R54-million in financial assistance.
In addition, Pretorius said ERPM had, to date, recorded a loss of R128,1-million after accounting for impairment of assets in the current financial year and in the previous financial year ended June 30, a loss of R102,7-million before tax.
The company said it had been present at the protest march and would provide a written response to organised labour within seven days.