The NUM has proposed that Pan African Resources’ mining licences be revoked and that the Evander Gold Mine be handed over to the government.
Speaking to Political Analysis South Africa on Thursday, 3 May 2018, Tshilidzi Mathvha, who is the Highveld Regional Secretary for National Union of Mineworkers’ (NUM) said, “It is only fair that they must suspend their licence back to the government and then we’ll have to see who comes in and continues the operation.”
The union’s comments come after Pan African Resources announced it would close the Evander gold mine, a situation that will result in the loss of over 1700 jobs.
The NUM released a statement on Thursday, 3 May 2018 condemning the closure of the mine, saying the mine has enough ore to run for the next 40 years.
The union added that workers were given their termination notices on the 25 April 2018.
Mathvha explained that “the employer [Pan African Resources] played a cunning game because if the company is able to project the crisis in 12 months time they should’ve actually made this known to us 12 months back. We could’ve entered into the process of involving the DMR [Department of Mineral Resources] and came up with measures on how it could be avoided.”
The NUM suggested the R1.74 billion that was “currently being invested in Elikhulu [another project by the company] could have been invested in 8-Shaft [Evander] to secure jobs for a protracted period of time.”
Pan African Resource dismissed the suggestion, explaining that “the R1.7bn of funding for the Elikhulu project was raised from shareholders and a banking consortium in the proportion of R700m of equity and R1bn of debt on the basis that this funding could be repaid from operational cash flows over a reasonable term. An independent technical and financial study on 8-Shaft demonstrated that it is unlikely that further investments in the mine could be repaid with any degree of confidence over a reasonable term.”
The union also claimed “Pan African Resources gave employees an ultimatum to vacate the company houses by the 30th May 2018 planning to sell those houses. This is painful because 80% of the workforce was drawn from all over the country and the neighbouring countries and they now reside with their families and their kids being registered at surrounding schools.”
In an emailed statement to Political Analysis South Africa, Pan African Resources denied plans to eject workers from their homes at the end of May 2018 when the retrenchments come into effect.
Instead, the company says it “has and continues to engage with the recognised as well as with representatives of the non-unionsed employees, on this matter. No decision has been taken as the company endeavours to find a mutually acceptable outcome in this regard.”
