HomeGoldNew bid forthcoming in Pamodzi saga

New bid forthcoming in Pamodzi saga

One of Pamodzi’s
East Rand Mines
Johannesburg, South Africa — MININGREVIEW.COM — 22 June 2009 – A decision on a preferred bidder for Pamodzi Gold’s President Steyn mine has been pushed back for at least another week, as the provisional liquidators are assessing Harmony Gold’s offer and investigating another bid, reports Fin24.com.

Pamodzi’s assets were put into the care of provisional liquidators after the company had run up debts of more than R1billion. The assets are: the President Steyn mine, the Orkney mine and East Rand mines.

Quoting Miningmx, Fin 24 reports that the President Steyn mine, currently on care and maintenance, is in the Free State near Harmony’s operating mine, which opens synergies that few others can hope to replicate. These synergies could allow it to break down the President Steyn mine and extract gold from parts, run the mine more cost-effectively and access gold and uranium-bearing tailings dumps.

The provisional liquidators have to take Harmony’s offer to creditors of the mine, the Industrial Development Corporation (IDC) and organised labour. This process should be completed by 26 June.

However, says Miningmx, there is a fresh twist. A group that had suggested a couple of weeks ago it would make a bid for all three of Pamodzi’s assets has come up with a funding letter. The liquidators have to verify this and then run it through an assessment process, consulting creditors and labour.

The unspecified offer, thought to be close to US$100 million (R800 million), could be for all three assets.

The group is not thought to be the Sekunjalo Middle East Mining Consortium, which had initially suggested a bid for the holding company, Pamodzi Gold, but later diluted this to an offer just for President Steyn.