2. MATTERS RELATING TO THE LIQUIDATION OF PAMODZI
Presentation to the Parliamentary Portfolio Committee
2012

3. STRUCTURE OF THE PRESENTATION
Background
Role of the DMR
Licensing, permitting & transformation
Labour issues
Environmental management
Mine health and safety

4. BACKGROUND AND STATUS OF THE LIQUIDATION PROCESS
17 April 2009, Pamodzi Gold placed under provisional liquidation.
Pamodzi was way behind on salaries, Major creditor (Bank) gave R50m mostly used to pay salaries
Liquidators wanted to sell company as going concern.
Assets comprised Orkney Mines in North West and Pamodzi Gold East Rand (Pty) Ltd. in Gauteng.
Liquidators gave interim trading contract and mining agreement to Aurora- This initiative failed
Orkney Mine in process of being sold to China Africa Precious Mining.
No applications received regarding Pamodzi Gold East Rand (Pty) Ltd.

5. LICENSING, PERMITTING AND TRANSFORMATION
Orkney Mines
Mine is being sold as a going concern to China Africa Precious Mining
CAPM has been evaluated and is 26% BEE compliant.
Sect 11 consent to transfer has been given
Subject to environmental guarantee being provided to DMR prior to Registration of cession
Not lodged yet with Mineral and Petroleum Titles Registration Office or registration.

6. LICENSING, PERMITTING AND TRANSFORMATION
Pamodzi East Rand Operations
Mining operations will not be sold as a going concern
Joint Provisional Liquidators intend selling assets and winding up the company
No agreements made available to DMR as yet
DMR will continue to engage regarding any agreements to dispose of East Rand assets.

7. LABOUR ISSUES Some 3 000 workers are affected at Grootvlei.
Some workers 1170 affected at Orkney.
The MH&S inspectorate encouraged employers during workshops to engage the DMR on the medical examinations of ex-workers to facilitate their re-employability.
DMR is in consultation with DOL in this issue.

8. ENVIRONMENTAL MANAGEMENT
East Rand Operations
Mine is not converted
Main issue is water (AMD) and slimes dams.
Water is generated from the entire East Rand Basin which includes what once was 24 Large scale mines operating in the basin.
A study was led by CGS which recommended water must be pumped and treated.
DWA is the Lead Agent
DWA appointed Trans Caledonian Tunnel Authority to address the water problem in the East Central and Western basins.

9. MINE HEALTH AND SAFETY Orkney Mines East Rand Operations
Mine as a whole is being sold although not currently operating-Mine being regulated as normal.
East Rand Operations
There are no mining activities taking place at these operations
Inspectorate is regularly monitoring and facilitating the closure of open holes to prevent illegal access
Informed by Monthly reports from mines and Inspections

10. MINE HEALTH AND SAFETY
Minister Established and DMR chairs an illegal mining forum.
Includes Gravelotte, Manhattan, Gold One, Goliath Gold, Dept Home Affairs, JPL’s of Grootvei, Central Rand Gold, Ekurhuleni, iProp, SAPS and DRD Gold.
Forum facilitates the closure of openings used for illegal mining activity
Regular inspections are being conducted
14 August - Minister personally led an inspection of closed openings which were being used for Illegal access.

11. THANK YOU