Johannesburg, South Africa — MININGREVIEW.COM — 22 February 2010 – Simmer & Jack Mines Limited (Simmers) “’ a JSE-listed emerging South African resources company with significant gold and uranium assets “’ is planning to place its downsized Transvaal Gold Mining Estate (TGME) in Mpumalanga province on care-and-maintenance.
Revealing this in a statement here, new Simmers CEO Deon van der Mescht said the step was being taken in order to enable the company to focus more intensely on its better-performing gold mines in North West province.
Van der Mescht explained that TGME volumes had been too low to make the operation profitable, and Simmers was thus embarking on a consultative process under Section 189A of the Labour Relations Act to downsize it further.
“We’ll put that operation on care-and-maintenance and then review our strategy for going forward," he added.
Van der Mescht pointed out that the work at TGME in the last few years had all been aimed at extracting gold from surface sources and the loss-making operation, which was hit further by the November and December rains, would have required more capital to unlock its potential.
He added that the alternative of putting TGME on care-and-maintenance would allow management to give more attention to its regional Buffels/Tau Lekoa consolidation, where there were R100-million-a-year potential synergies and superior returns as higher-grade areas were mined.