Simmer and Jack Mines, Limited - Press announcement
Simmer and Jack Mines, Limited
Registration number: 1924/007778/06
Share code: SIM
ISIN: ZAE000006722
Simmers one step closer to starting up North West operations
Johannesburg -- Simmer & Jack Mines Limited (Simmers), preferred bidder for
DRDGold`s liquidated North West Operations, has entered into new employment
agreements with Solidarity, SAEWA and UASA, three of the mining unions in the
area. Agreement with organised labour is one of the key conditions in terms of
Simmers` bid for the North West operations (comprising Buffelsfontein and
Hartebeesfontein mines), which were put into provisional liquidation in March
2005 by DRDGold. Negotiations are still ongoing with the National Union of
Mineworkers (NUM).
According to trade union Solidarity, the signing of the new conditions of
employment marks the start of new activity by Simmers in the area. `The workers
who have been unemployed since March with no source of income are extremely
frustrated. Solidarity hopes that mining activities will be resumed as soon as
possible in order to normalise the situation. The trade union and the community
are conducting an extensive feeding programme in order to alleviate the
suffering. These arrangements are however very short term and not sustainable.
The mine must become operational again as soon as possible,` said Reint Dykema,
spokesperson for Solidarity.
Simmers CEO Gordon Miller, says that the company is laying the groundwork to
employ at least 3 800 workers under new conditions of employment and is ready to
recommence mining at the North West Operations as soon as an agreement with the
liquidator can be reached.
`We are particularly pleased with the progress made in forming a pact with
organised labour as we are all working towards the same end: i.e relieving the
plight of affected workers by giving them the opportunity for gainful
employment,` said Miller.
He added that Simmers was currently in negotiations with the liquidators to
resume mining operations as quickly as possible. The company estimates that the
operations can be profitably mined for at least another ten years.
`Another positive outcome in our re-opening the North West operations is that
Simmers will then be in a position to contribute its pro rata share to the
pumping costs of extraneous underground mine water in the area, thereby
relieving the pressure on the other companies operating in the area,` said
Miller.
Miller said that Simmers ascribes to the Government`s policy that `the user
pays` and as a condition of its offer for the two mines, would enter into
interim agreements with the other operators in the KOSH region to resolve the
current dispute about whom should pay for pumping costs.
`Timing, however, is of the essence. Delaying finalisation of the bid will
compound the problems being experienced by the members of the community, and
will also lead to an unnecessary deterioration of the mining infrastructure,
thereby increasing the start-up costs. It is therefore imperative that the
suspensive conditions of our bid are dealt with as a matter of urgency,` said
Miller.
Issued by Simmer & Jack Mines, Limited
22 June 2005
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Sponsor: River Group
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