Today's Labour News

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VantageGoldfieldsCity Press reports that a local minerals and investments company has signed a R190m loan with the Industrial Development Corporation (IDC) to acquire a 74% stake in the cash-strapped Vantage Goldfields SA to reopen two Mpumalanga mines.  

Siyakhula Sonke Empowerment Corporation (SSC) Flaming Silver signed the loan deal on Thursday afternoon.  This agreement will enable SSC to reopen the Lily and Barbrook mines in Mpumalanga, which were shut down and later placed under business rescue in 2016.  Vantage Goldfields was forced to close down Lily Mine when the entrance to its shaft collapsed in February 2016.  Three workers – Yvonne Mnisi, Pretty Nkambule and Solomon Nyerende – who were working in a container office, were buried underground.  Lily Mine employed 900 workers and Barbrook employed 100 before operations were mothballed.  According to the business rescue plan, Vantage Goldfields needs R310m to reopen the two mines.  Business rescue practitioner Rob Devereux said SSC would contribute the difference of R120m and get the gold mines back into operation.  The SSC breakthrough comes after two previous deals failed, placing the mines under business rescue.  But the deal has not yet prompted creditors to withdraw their application to liquidate Vantage Goldfields.

  • Read this report by Sizwe Sama Yende in full at Fin24

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