VIL - Village Main Reef Limited - Production disruption at Consolidated
VIL
VIL
VIL - Village Main Reef Limited - Production disruption at Consolidated
Murchison Mine ("Cons Murch")
Village Main Reef Limited
(formerly known as Village Main Reef Gold Mining Company (1934) Limited)
(Registration number 1934/0057034/06)
Share Code: VIL
ISIN: ZAE000154761
("Village")
PRODUCTION DISRUPTION AT CONSOLIDATED MURCHISON MINE ("Cons Murch")
Village has started a process to dismiss employees, who are members of
the National Union of Mineworkers ("NUM"), that have been participating
in unprotected strike action in the form of a go-slow campaign at its
Cons Murch mine in Limpopo. The go-slow action over the last two weeks
has negatively impacted production from the underground operations at
Cons Murch with daily production achieved at around a third of normal
production levels. The dispute arose in relation to certain historic
overtime payments claimed by the employees resulting from their
employment at Cons Murch, pre Village ownership and involvement.
In an attempt to normalise the labour situation and to avoid drastic
action, a further and final ultimatum was issued to our employees to
normalise production levels by Wednesday 21st September 2011. It is
anticipated that there will be no production from Cons Murch for at least
a two week period and that antimony and gold production for the December
2011 quarter could be some 500tons and 25kg respectively, lower than that
forecast for the September quarter. The lower production will not
significantly impact on the forecast production for the September
quarter. Although the lower production will have a materially negative
impact on the Cons Murch results for the December quarter, it will not
materially impact the results of Village for the December quarter.
22 September 2011
Sponsor
Java Capital
Date: 22/09/2011 07:54:01 Produced by the JSE SENS Department.
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