Simmers - Simmers Gets Green Light From Num
Release Date: 01/07/2005 17:00:01 Code(s): SIM
Simmers - Simmers gets green light from NUM
Simmer & Jack Mines Limited
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM & ISIN: ZAE000006722
(`Simmers` or `the Company`)
Issued by Simmer & Jack Mines Limited
1 July 2005
SIMMERS GETS GREEN LIGHT FROM NUM
Johannesburg -- Simmer & Jack Mines, Limited (Simmers), preferred bidder for
DRDGold`s liquidated North West Operations, has concluded an agreement with the
National Union of Mineworkers (NUM).
The deal was signed late last night following almost four weeks of negotiations
between the parties. In terms of the agreement, NUM`s members have accepted the
new, restructured conditions of employment which Solidarity, SAEWA (South
African Equity Workers Association) and UASA (United Association of South Afrca)
agreed to almost two weeks ago.
`This is an important step for us,` said Simmers chairman, Roger Kebble.
`Without buy-in from organised labour, it would not have been possible to turn
this marginal operation around. We were not prepared to continue with our bid
without the full support of labour, so we are delighted that NUM now shares our
vision for the North West operations. This agreement lays the groundwork for us
to begin employing almost 3 800 people under a new, all-inclusive, non-
discriminatory conditions of employment structure, where the same principles of
remuneration will apply across the board. This means that everyone will be
entitled to the same employee benefits.`
Kebble said that the next step was to finalise an interim agreement with the
liquidator as a precursor to the purchase agreement. `We are confident that
this will be concluded by early next week as it is in everyone`s best interests
to resume operations`.
Deon van der Mescht, chief operating officer for Simmers and the man who will be
charged with the turnaround of the North West operations, said that he was
confident that with organised labour`s support, the liquidated mines could be
successfully revived.
`The employees are the single most important asset. If we all share a common
vision, I have no doubt that we can turn these operations into sustainable
assets for the benefit of all stakeholders. The people of Stilfontein have
endured months of unimaginable hardships - the resumption of mining activity
will hopefully mark the beginning of the regeneration of the community.`
The signing of the NUM agreement comes just in time as almost 3 800 hostel
dwellers were about to face an uncertain future without essential services, as
the water and electricity were about to be cut off. Additionally, the catering
contract to feed the former workers was also due to expire today.
`All these issues can now be constructively addressed,` said van der Mescht.
An interim agreement with the liquidators will allow Simmers to resume
operations for its own account, subject to regulatory approval. The holding
costs will be deducted from the purchase price. The new business model is
designed to extend the life of the North West operations by ten years.
Ends.
CONTACT PERSON: GAIL STRAUSS ON 084 777 4060
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