Today's Labour News

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VantageGoldfieldsBusiness Report writes that merger talks between Toronto-listed Galane Gold and Vantage Goldfields that were aimed at reviving production at Lily Mine in Mpumalanga have collapsed.  

Trade union Solidarity said on Monday that the negotiations fell through at the last minute last week.  The bodies of three mineworkers remain trapped in a container underground at the mine.  Solidarity general secretary Gideon du Plessis said:  “In talks with Lily’s top management, I was told that the transaction was cancelled and that Lily’s management is investigating two other options.”  The transaction would have seen Galane and Vantage merging to raise R200 million for the resumption of production.  Du Plessis said that the failure of the transaction was a major setback for Lily workers and the surrounding community, which depended on the mine for an income.  Noting that with every transaction that has failed over the past 18 months, it has taken six months before the next potential investor or buyer came forward, Du Plessis added that it was now time for the creditors and Lily’s employees to investigate the benefits of liquidation instead of business rescue.

  • Read this report by Dineo Faku in full at Business Report
  • And also, Hopes dashed as Lily mine deal fails at last minute, at Fin24
  • Read Solidarity’s press statement in this regard at Solidarity online

Get other news reports at the SA Labour News home page