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Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011.

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Presentation on theme: "Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011."— Presentation transcript:

1 Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011

2 www.drdgold.com Relevant subsidiary structure: West Wits 1 DRDGOLD West Wits Holdings West Wits Mining

3 www.drdgold.com Relevant subsidiary structure: ERPM 2 DRDGOLD DRDSA ERPM

4 www.drdgold.com Western Basin 3 1995 – 1999: West Wits mines the area under two tributary agreements. The rock it extracts contributes approximately 0,5% to the total underground excavation 2006:West Wits agrees with Mintails to establish a business trust to seek a self-sustainable solution for AMD in the region 2007:The trust structure is replaced by a S21 company, Western Utilities Corporation (WUC) pursuant to a DWAF directive with a structure agreed to by DWAF 2007-2011:DRDGOLD contributes R23 980 204 in direct and indirect water treatment & research costs; DRDGOLD dedicates the commercial upside of a rock dump (R42m in value) at WW to a special purpose trust for future costs

5 www.drdgold.com CENTRAL BASIN: ERPM 4 2004-2008 ERPM incurs R41m direct net expenditure for pumping and treating Central Basin water 2008: ERPM stops pumping in terms of a Section 54 work stoppage order issued by the DMR, and its pump-station floods 2009: ERPM commits shaft infrastructure and its HDS plant to WUC (R300m-R400m in value) and agrees to a guaranteed water off-take agreement with WUC post regional implementation. Currently:ERPM continues to fund shaft and plant holding costs (Eskom, security, etc) at R280 000 per month pending implementation of solution.

6 www.drdgold.com Current initiatives  Research project with leading academic institution  assessing viability of alternative water treatment technology using ERPM ice plant  Alignment with TCTA  assisting with execution of DWA mandate  Maintenance of reserve power allocation & infrastructure  to ensure adequate power for submersible pumps, plant and shaft  R7.8 million expended from Oct 2008 to present 5

7 www.drdgold.com Conclusion DRDGOLD supports the WUC proposal  it is a full discharge of the terms of 2005 directive  it provides the only self-sustaining, “zero-cost-to-taxpayer” solution  it is the only proposal that will survive mine closures 6

8 Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011


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