RESOURCES: DRDGold in Trouble
Recent Gauteng Business News
It is not surprising that marginal gold producer DRDGold’s Blyvoor mine has been placed under judicial management. DRDGold offered the exchange rate as a reason for the move. In addition, the number 5 shaft sustained seismic damage in May.
Eskom’s large electricity tariff hike of 32% also added to the running costs and there was a strike earlier this year by the NUM at the mine, which led to production losses.
According to reports poor management also played a role in the mine’s failure. A month ago, the mine’s management concluded an agency agreement with a minority trade union, Uasa, without consulting with the majority union, NUM, as is required by law. There have also been cases of alleged fraud at the mine and the trade union Solidarity has already laid charges with the SAPS in this regard.
The matter is being investigated. DRDGold also excluded Solidarity from the Section 189 retrenchment process. In this regard, the trade union is currently working on a court order to halt the exclusion. These examples of poor management and labour relations help to explain why the mine is in trouble.
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