AngloGold Ashanti Limited - Department Of Water Af
AngloGold Ashanti Limited - Department Of Water Affairs And Forestry Issues
Directive
AngloGold Ashanti Limited
(formerly AngloGold Limited)
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
(`AngloGold Ashanti/Company`)
DEPARTMENT OF WATER AFFAIRS AND FORESTRY ISSUES DIRECTIVE
The Department of Water Affairs and Forestry today issued a directive, as an
interim measure, ordering three mining groups, DRDGold, Harmony and ourselves to
share equally the costs of pumping water at a number of shafts at Stilfontein
Gold Mine and Buffelsfontein Gold Mines.
The directive follows the launch by AngloGold Ashanti earlier this week of an
urgent interdict following the threat by DRDGold that it would cease funding the
pumping of water at the shafts after placing its subsidiary Buffelsfontein into
liquidation on March 22. DRDGold has been pumping water at Stilfontein under
contract for several years. The consequences of a halting of pumping would have
been the flooding of several Harmony shafts and AngloGold Ashanti mines in the
Vaal River area.
The interdict cited as respondents Stilfontein, DRDGold, various DRDGold
subsidiaries and the Ministers of Water Affairs, Minerals and Energy and
Environmental Affairs. The purpose was to force the responsible mining companies
to continue their pumping activities, and the Ministers to take certain actions
to ensure that these companies carry out their legal obligations.
It is believed that the costs covered by the directive total some R4,3m per
month in total, though this figure is still to be verified.
AngloGold Ashanti is pleased that government accepted that the threat of
environmental and economic catastrophe was sufficiently serious that it issued
the directive.
We accept the interim arrangement designed to ensure that catastrophe is
averted, knowing that the directive is an emergency measure and says nothing
about parties respective legal obligations into the future. However, we continue
to maintain that the legal obligation to continue pumping rests with
Stilfontein, DRDGold and/or its subsidiaries in liquidation.
The interdict application has been postponed, but will be pursued to
completion to enable the court finally to determine legal liabilities and
responsibilities. We believe that it would be untenable were a precedent to be
set allowing mining companies to walk away from their environmental, health,
safety and economic obligations.
We further believe, however, that all parties will have to participate in
seeking a long-term solution to the management of underground water in the area.
We will be willing participants in this.
ends
Johannesburg
15 April 2005
Date: 15/04/2005 05:36:36 PM
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