HomeGoldHarmony-Pamodzi merger conditionally approved

Harmony-Pamodzi merger conditionally approved

Pamodzi Gold Number
Three Shaft
 
Johannesburg, South Africa — MININGREVIEW.COM — 14 December 2009 – A merger between Harmony Gold Mining Company “’ Africa’s third-largest producer of the precious metal “’ and Pamodzi Gold Free State has been conditionally approved.

Announcing this in a statement here, the Competition Tribunal said the condition required Harmony to adhere to the terms of an existing agreement which it had entered into with the National Union of Mineworkers (NUM) and Solidarity.

As a result of the provisional liquidation of Pamodzi Free State, there were job losses of approximately 3 000, Fin24.com explained. However, it said that Harmony had an agreement with NUM and Solidarity on the phased re-employment of 2 000 people over the period of a year.

The tribunal revealed that an objection had been lodged against the merger by Virgile Mining Corporation, on the grounds that Virgile’s offer would not result in unemployment, while the

Harmony offer would result in the loss of about 1 000 jobs. In addition, Virgile argued that it had been unfairly treated in the tender process.

The tribunal said it had invited Virgile to make oral representation at the hearing on Friday, but then received an e-mail from Virgile CEO Hettie Fourie saying that the company would not be present.

The tribunal said that in terms of the sale of assets agreements, Avgold intended to acquire the gold mining, processing and related business carried out by Pamodzi Free State under the name of President Steyn North Division, which included the operation of the North Steyn hhafts.

The President Steyn South Division would be directly acquired by Harmony and the President Steyn North Division would be directly acquired by Avgold, a wholly owned subsidiary of Harmony.

On completion of the transaction the business of Pamodzi Free State “’ consisting of both the President Steyn south and north divisions “’ would be controlled by Harmony and Avgold, it added.

LATEST FEATURES