JOHANNESBURG (miningweekly.com) – As trade union Solidarity called for an insolvency probe into potential financial irregularities in the provisionally liquidated Pamodzi Gold, the stricken company’s liquidators on Thursday announced that the German HypoVereinsbank (HVB) had provided a R50-million loan that would facilitate a return to full production at Pamodzi Gold’s East Rand operations.
Joint provisional liquidator Enver Motala of SBT Trust told Mining Weekly Online further that he would be applying to the High Court for an extension of the May 26 return date for all three of the liquidated gold mines, for which takeover offers were being formulated.
Hbrick crusher machinese also revealed that he had held “very constructive” talks with cash-flush suitor Sekunjalo, that has access to $500-million from Middle Eastern families – but there was still no word at all from mystery funder Best Rock, the name of which previous management had repeatedly paraded to the media amid a flurry of trumpets.
Following an urgent appeal to Standard Bank, Nedbank, FNB and Absa not to fine unpaidapplication for stone crusher plant Pamodzi Gold employees for late payment of debit orders, Solidarity said that all four of the banks had now promised their support for the employees of the bankrupt gold company.
The trade union simultaneously called for an insolvency investigation to sniff out potential financial irregularities within the Pamodzi group.
Motala said that the R50-million HVB loan would eautomatic stone crusher plant orissanable full-scale gold production to proceed at the East Rand mines, which have benefited from inventive GM Graham Chamberlain, the only Pamodzi Gold manager who continued to generate a revenue stream throughout the crisis.
An amount of R11,1-million in outstanding salaries had now been paid to all 4 200 East Rand employees, Motala added. There were now no further East Rand salary amounts due.
“We have every confidence that employees will now immediately return to their positions,” Motala added, in reference the National Union of Mineworkers striking to protest nonpayment of salaries.
He said that HVB had requested the liquidators to hold back on the sale of Pamodzi Gold East Rand, until the East Rand operations were operating profitably.
“This does not mean that, in consultation with the bank, we won’t consider lucrative offers,” Motala said.
Liquidators were hoping to finalise all the offers for the Pamodzi Gold Orkney and Free State companies by June 2. Both mines were on care-and-maintenance, Orkney’s costs having risen to R5,2-million, with only 200 employees, out of a total of 2 800, required for the care-and-maintenance service.
Twenty-three-million rand, out of the R45-million that the State-owned Industrial Development Corporation advanced to Pamodzi Gold’s Free State salaries, had gone on paying outstanding salaries.
Amazingly, the liquidators had still not heard a thing from the mysterious Best Rock, which was still lying low.
However, latecomer Sekunjalo, which was considering making an offer for the entire Pamodzi Gold group rather than bits and pieces of Pamodzi Gold, was concluding its duediligence exercise.
Applications would be made for extensions to the May 26 return dates for all three of the provisionally liquidated Pamodzi Gold companies.