HomeGoldModder East strike continues

Modder East strike continues

Gold One’s
Modder East mine
Johannesburg, South Africa — MININGREVIEW.COM — 14 April 2010 – The industrial action that began on March 23 at the Modder East operation of Gold One International – a combination of South African gold development company Aflease Gold Limited and Australian gold exploration and development company BMA Gold Limited – has entered its fourth week.

“Gold One carefully considered the offer it tabled prior to the industrial action commencing, and has consistently retained its position during the negotiations,” the company said here in a statement. It expressed the management belief that the three-year offer it had tabled was significant, and was designed to ensure that all employees benefited from the expected profitability of the company as it improved in the coming years.

“Production at Modder East has continued since the industrial action began on 23 March 2010, with the company treating to date a total of 7 967 tonnes of ore at an average head grade of 5.64 grams per tonne,” Gold One said.

It revealed that for the 15 working days during the period of industrial action, gold production had amounted to around 43kg. “It is evident that the strike-action plan that has been implemented will allow the mine to operate indefinitely at these profitable production rates,” the company added.

Gold One said the tonnes treated were a mixture of underground accumulations and fresh ore.

"The fresh ore is mainly from on-reef development and is mined using mechanised mining methods."

While Gold One remained hopeful that the talks which resumed on April 12 2010 would lead to an agreement with the NUM, the company pointed out that a resolution to the impasse might still take some time. It was, however, well-positioned to deal with the situation.

“Gold One continues to adopt a policy of ‘no work-no pay,” the company stated.