| Thu 6 Oct 2005, 13:29 | | Aflease announces an end to the NUM strike at Bona |
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Aflease announces an end to the NUM strike at Bonanza South
Aflease Gold and Uranium Resources Limited
(Formerly The Afrikander Lease Limited)
(Incorporated in the Republic of South Africa)
AFL (JSE) AFLUY (NASDAQ)
(Registration number 1921/006955/06)
ISIN: ZAE000061461 & Share Code : AFL
("Aflease" or "the Company")
6th October 2005
Aflease announces an end to the NUM strike at Bonanza South
Aflease Gold and Uranium Resources is pleased to announce that it has reached
agreement with the National Union of Mineworkers (NUM) on a wage settlement.
All employees returned to work at the Bonanza South gold mine at 06.00 this
morning.
A three year agreement has been signed, which will provide a platform for
industrial peace as Aflease moves forward the development of its Dominion Reefs
uranium mine, for which Bonanza South serves as a pilot project.
"I am delighted that we are now back to business as usual," said Aflease CEO
Neal Froneman.
"The strike had no significant impact on production, as we kept the gold plant
running throughout.
"However, it is satisfying that we now have a three year agreement with the NUM,
which will ensure that we can move forward in partnership with the union, in
developing Dominion Reefs - a mine which could provide employment for up to 2
500 miners in an area which has experienced severe unemployment."
Neal Froneman also welcomed an undertaking that the NUM will support Aflease in
the company"s applications to the Department of Minerals and Energy Affairs
(DME) for prospecting and mining rights.
The strike had involved approximately 440 employees, and was embarked upon two
and a half weeks ago.
Neal Froneman said that management had agreed to a 6.7% cost to company wage
increase for this year, back-dated to 1st June, with increases of CPIX plus 1%
in each of the two following years.
"In addition, the union has agreed to the practice of continuous operations
(conops) which will allow us to mine around the clock, seven days a week," said
Neal Froneman.
"There has also been an agreement on the proceedings for picketing in the event
of any future dispute.
"We can now go forward, together with our employees, on the basis of this far-
reaching settlement, as we proceed towards our target of starting mining of
uranium in 2007.
"This three year deal is excellent news for Aflease shareholders, for the union,
as well as for employment prospects in the Klerksdorp area."
Last month, Aflease signed an empowerment agreement with the Micawber 397
consortium related to its mining assets in the Klerksdorp area, though which
Micawber will acquire 26% of the assets.
Historically disadvantaged employees have a 30% stake in Micawber 397, through a
trust fund, with the local community also holding 30% through a separate trust
fund, making this a broad based consortium, and making the empowerment deal a
model for other companies.
Contact: Neal Froneman 083 628 0226
Carol Smith 082 338 2228
John Fraser 082 331 7330
Date: 06/10/2005 01:29:29 PM Produced by the JSE SENS Department
