The group, which earmarked an initial R180-million over 15 months for infrastructure capital when the Wits Gold deal closed, was currently upgrading its due diligence study to a detailed life-of-mine plan, due for completion in the first quarter of 2015.
July 4th, 2014 "...Following the-successful completion of the-plan, the Southgold mine was officially taken out of business rescue on Tuesday, after concluding the transaction with Sibanye Gold.
Khan added that the deal would see some 2 000 people, who were initially retrenched in 2012 when Burnstone went into care and maintenance, re-employed at the mine.
Sibanye said previously that it could restart gold production at the suspended mine early in 2015, establishing a 50 000 oz/y operation initially, before increasing output to 100 000 oz/y in Phase 2.
“With the plan in place, it’s expected to take around 18 months for the mine to be up and running again, and then, perhaps after a year, it will get back to full production and be back at full employment. This may lead to the employment of even more people than [before]. It's a really big success story,” Kahn reiterated.
Elaborating on the significance of Southgold’s successful business rescue to the broader sector, she said it was the first time that Chapter 6 of the Companies Act – which dealt with business rescue proceedings – had been used with such success in the mining industry.
“One thing that differentiates this rescue from others is that it was very well planned, it had funding, and it had the support of its lenders from the outset. People often say that the legislation is inadequate, because there are lots of examples of these kinds of things failing, but often it has to do with timing and planning,”Khan commented...."
News 
Market Data 
Discover 
