Lily Mine creditors seek liquidation rescue plan

CREDITORS of the Lily Mine, Mpumalanga, where three mineworkers were tragically killed, are preparing to apply for provisional liquidation of the operation.

Agitated creditors of both Lily and and Barbrook mines have lost faith in the owner of the mines and accused the business rescue practitioner of failing to live up to his promises.

Dwain Koch, who speaks on behalf of the Barbrook Creditors Committee, said the provisional liquidation would ensure the mining licences of the operation remained intact and remove the directors and the business rescue practitioner. “The business rescue practitioner has not lived up to the business rescue plan, including making payments to creditors. He is allowing the assets to be destroyed by illegal miners,” he said.

Three workers were killed when the lamp room container they were working in collapsed three years ago.

Fred Arendse, the chief executive of Siyakhula Sonke Empowerment Corporation, which took control of the mines from Australian company Vantage Goldfields, said the company remained committed to resuming operations.

“I do not wish any actions to have a detrimental and negative impact on our collective efforts and progress… that will discourage investments in the group and in the community. We, therefore, recommend that we work together in moving all of us forward and if it means removing key obstacles out of our way, we will do that.”

Siyakhula received R190 million in funding from the Industrial Development Corporation to finance the takeover.