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Johannesburg, Feb 6 (I-Net Bridge) - DRDGOLD (DRD)shareholders were advised on Monday that, following a recommendation from the board of directors of its 74%-owned Blyvooruitzicht Gold Mining Company, it had resolved to suspend all further mining at Blyvoor's low-grade Number 4 and 6 shafts with immediate effect.
"Pursuant to this resolution, which may impact on up to 1,800 employees of the mine, Blyvoor's management has given notice in terms of Section 189 (3) of the Labour Relations Act to the National Union of Mineworkers and UASA of a 60-day process to seek consensus on the possible cutbacks."
The company said these measures followed a decline since April 2011 in recovery grades to below cut-off at the two shafts, which were used mainly to pump water from underground to surface and into Blyvoor's surface recovery circuit.
"Both shafts failed to respond to turnaround efforts since the introduction of business rescue proceedings in the second half of last year."
The company added that for the time being, pumping of underground water from the two shafts would not be affected by the cutbacks.
Production from Blyvoor's surface recycling circuit and at its principal No 5 production shaft; from which it planned to access an additional 400,000 ounces it was seeking to acquire from AngloGold Ashanti's Savuka Mine - were also not affected by the decision.
"DRDGOLD has notified Village Main Reef - with whom DRDGOLD is currently in negotiations for the disposal of its stake in Blyvoor - of its decision, and is of the view that the proposed sale will not be negatively affected by it," the company concluded.
