Workers fear another Aurora at Blyvoor
WORKERS at the Blyvooruitzicht mine near Carletonville, which was placed under provisional liquidation this month, fear they face a long struggle to get paid the wages they are due.
About 1 700 people have been left without jobs, and are likely to soon be without housing and access to electricity. Workers protested at the mine this week, demanding information on the liquidation process.
They fear a “repeat of Aurora”, said Lesiba Seshoka, spokesman for the National Union of Mineworkers.
Aurora refers to the bungled liquidation process of Pamodzi Gold, where politically connected Aurora Empowerment Systems was given preferred buyer status. It mismanaged the mine, sold assets and left miners destitute.
Workers want to be paid, but where will they [liquidators] get the money
Seshoka said: “Workers want to be paid, but where will they [liquidators] get the money?”
Blyvoor incurred an R88-million loss in the June quarter due to a declining gold price, rising costs and a “series of operational infrastructure challenges”, according to Village Main Reef, which has been operating the long-struggling Blyvoor since June last year.
Marius Saaiman, Blyvoor and Village Main director, said in the liquidation application that the mine provided accommodation and essential services, including electricity, water and food, to about 1 700 employees.
Blyvoor liquidator Leigh Roering said they were engaging with unions and trying to make “some upfront payment to workers”.
Village decided on July 30 to no longer fund the mine, leading to it being put under provisional liquidation on August 6. It is now one of the biggest creditors of Blyvoor, as it provided working capital of R189-million to the mine. Blyvoor’s liabilities total R849million, according to financial documents submitted to the South Gauteng High Court.
There had been various approaches from potential buyers, but Blyvoor’s surface operations, such as its slimes dams and mine dumps, might be the most attractive for potential buyers, Roering said. Blyvoor’s gold resources are estimated at 30.39 million ounces.
In the interim, the focus is on maintaining water pumping at Blyvoor.
Neighbour AngloGold Ashanti said it would spend an estimated R143-million a year to pump water from Blyvoor to protect its mines in the area from flooding after it obtained an urgent court order granting it permission to access Blyvoor shafts.
Richard Mack, vice-president of engineering at AngloGold, said in his affidavit that it would take only 14 days for its Savuka mine to start flooding should Blyvoor halt pumping operations, while the water would reach its TauTona and Mponeng mines within 21 days and eventually surface and end up in the Wonderfontein Spruit.
He was critical of Blyvoor’s alleged failure to inform the necessary authorities of its decision to apply for provisional liquidation.
“While a liquidation order may aide the ailing Blyvoor, it will most certainly result in catastrophic consequences for others and the environment if appropriate measures are not first put in place,” Mack said.
Saaiman and Village CEO Ferdi Dippenaar referred all questions to the liquidators.
The liquidation is further complicated as the buyout of Blyvoor from DRDGold is not yet complete. Village bought the mine from DRDGold in 2011, after Blyvoor was placed under business rescue.