Liquidation of DRD

By Lisa Rivett

For many employees of the Durban Roodeport Deep gold mine in Stilfontein, this will not be a happy Easter. On March 22, Johannesburg High Court granted provisional liquidation to the Buffelsfontein and Harbeesfontein mining group that controls the DRD mine.

This decision resulted in the suspension of operations at the DRD gold mine in Stilfontein. 6000 Mine workers must now wait to see if they will be unemployed at the end of the month. Mine spokesperson James Duncan stated that all mineworkers are to receive full pay until March 31. After this date, it will be up to the court appointed liquidator to decide the future of the mine and its employees.

Mr. Duncan stated several times that this was not the choice of the company, but of the High Court. He also stated that the DRD board of directors will not be able to make decisions concerning the mine, but that it will be the liquidator's report which will determine any future operations.

When questioned about “key” people still working on the mine, Mr. Duncan replied that it is those involved with mine safety. Electricians, emergency personnel, and employees involved with water pumping, are still working. When asked if the company was encouraging employees to find work elsewhere, or if some had already, Mr. Duncan had, “no comment”.

The last year has been a tough one for the DRD gold mine. The mine has been losing money and there have been speculations during this time about its closure. After the earthquake earlier this month the gold mine suffered serious losses. Both the #5 shaft and the #2 shaft of the DRD mine were ruined, and therefore shut down.  With 30% of the gold mined at Stilfontein coming from these shafts it has resulted in significant financial difficulties for the company.

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