1. STATUS OF GROOTVLEI MINE
PRESENTATION TO PPC
STATUS OF GROOTVLEI MINE
13 APRIL 2011

2. Water and Environmental Issues The pumping subsidy Health and Safety
PRESENTATION OUTLINE
Background
Liquidation matters
Water and Environmental Issues
The pumping subsidy
Health and Safety
Concluding remarks

3. BACKGROUND
The mine situated about 1km west of the town of Nigel and few kilometers from Springs town
Operated under a mining licence in terms of the repealed Minerals Act,1991
Wholly owned by Pamodzi Gold
Pamodzi currently under provisional liquidation

4. THE LIQUIDATION
In 2009 the company started experiencing serious cash flow challenges
Placed under Provisional Liquidation since then
Aurora was appointed by the Liquidator on a management contract to operate the mine until cash to take the mine over is secured
Final liquidation order by the high court still pending

5. THE LIQUIDATION CONT…
According to the Liquidators, the Court has extended the Liquidation process to August 2011
DMR informed that the liquidators and management contractor cannot meet any of the mine’s financial obligations
Recommendation to place mine on care and maintenance submitted to DMR

6. WATER AND ENVIRONMENTAL ISSUES
Historically, pumping capacity at Grootvlei at 110 mega litres p/day
Capacity to pump at this rate diminished with time due to poor or non maintenance of the pumping infrastructure
Application for pumping subsidy, 2009: October to December
No assistance currently due to criteria not met

7. CRITERIA FOR PUMPING ASSISTANCE
Applicable only critically marginal mines
Applicable to mines in financial difficulty
Mine in a short term crisis but inherently sustainable and not dependent on state aid for its survival
Mines to reveal all relevant information to the adjudication authority

8. CRITERIA FOR PUMPING ASSISTANCE
The mine must be faced with imminent closure if not assisted
Applicable to operational mines only
No other expenses other than pumping costs to be claimed

9. SIMPLIFIED SECTION OF PUMPING AREA

10. HEALTH AND SAFETY AT THE MINE
Due to financial problems, the mine’s capacity to mine safely compromised.
Inspections and audits conducted to ensure compliance with provisions of MHSA.
Safety of persons at the mine could not be assured, vital infrastructure such as man hoist could not be maintained.
DMR advised the mine to be placed under care and maintenance, until it recovers.
Mine currently under care and maintenance

11. CONCLUDING REMARKS
Awaiting the final Liquidation Order
Care and maintenance to be lifted
Initiative with DWA on the broader solutions within the Wits basin, Grootvlei part of the central basin

12. THANK YOU