DRD - BLYVOORUITZICHT RETRENCHMENTS TO COST R30 MILLION
DURBAN ROODEPOORT DEEP, LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1895/000926/06)
(Share code: DUR)
(ISIN: ZAE000015079)
(ARBN number: 086 277 616)
(NASDAQ Trading Symbol: DROOY)
(`DRD`)
BLYVOORUITZICHT RETRENCHMENTS TO COST R30 MILLION
Contrary to a report in today`s Business Day, retrenchments of up to 2 000
employees at DRD`s Blyvooruitzicht (`Blyvoor`) mine near Carletonville, South
Africa are expected to cost approximately R30 million.
The newspaper reported that `packages are expected to cost the mine about R100
million`. The company was not asked to comment on the expected retrenchment
costs.
Agreements were concluded this week between DRD and employee organisations (NUM,
UASA, Solidarity and SAEWA), intended to restore Blyvoor to profitability.
The key elements of the agreement, reached during CCMA-facilitated consultation
initiated on 28 June 2004 in terms of a Labour Relations Act Section 189 notice,
are:
- up to 2 000 of the mine`s 4 400 employees to be retrenched by 20 September
2004; and
- no shaft closures.
The intention is to:
- reduce overheads immediately and return the mine to breakeven and then to,
at most, R80 000/kg; and
- preserve the mine`s existing infrastructure, in order to have a sound
platform for further remedial action over the next six months and for a
strategy to take the mine into the future.
In terms of the agreement:
- employee organisations have given a six-month undertaking not to disrupt
the normal operations of the company in any way; and
- the current Section 189 process will be preserved for six months (so that,
should consultation on further actions be required, it will not be
necessary to issue a further Section 189 notice).
In terms of Blyvoor`s Social Plan, all employees affected by retrenchment will
be offered trauma counselling and skills re-training. Retrenched foreign
nationals will undergo counselling and re-training during their notice period,
before they return to their countries of origin.
DRD has announced the appointment of Mark Munroe as the new General Manager of
Blyvoor. Munroe (35) was previously Production Manager at DRD`s North West
Operations.
Johannesburg
10 September 2004
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