By Frank Nxumalo

The Pretoria High Court has granted embattled junior gold miner Pamodzi Gold a 72-hour reprieve to come up with at least R11 million of the estimated R22 million claimed by unpaid employees and creditors Engineering Labour Hire and Mining Supplies or face the liquidation of its assets at the Orkney Gold Mine in the North West Province.

Pamodzi opposed the liquidation application and trade union Solidarity welcomed the relief granted to Pamodzi by the Court. “We believe that all opportunities to save Pamodzi Gold must be exhausted before liquidation could be considered an option as this would be a disaster far worse than that at Buffelsfontein Mine a few months ago,” says Johan Engelbrecht, Solidarity’s legal advisor on liquidations. The statements were corroborated by Solidarity’s deputy general secretary Dirk Hermann who says the union is strongly opposed to liquidation as a way of solving Pamodzi’s financial woes.

Herman further says liquidation would be disastrous for up to 180 000 people who are dependent on the wages of the miner 15 000 employees. It is also believed that a second set of creditors are seeking a payment of up to R40 million from Pamodzi or the liquidation of its gold assets in the Free State. National Union of Mineworkers spokesperson Lesiba Leshoka says while the union is opposed to the liquidation of Pamodzi, it would support any investors who have the money to take over operations and save their members jobs.

Meanwhile, Solidarity has set up an Emergency Fund to support more than 4 000 mineworkers employed by Pamodzi in the Free State. So far, it has raised at least R50 000.  Over the past few months the workers have been consistently paid their wages late as the company struggled financially and in February the miners only received 60% of their wages. A further 40% of their total salaries were paid this week.

Social welfare crisis unfolding

Helping Hand, Solidarity’s welfare arm, will administer the Fund which will be known as the Welkom Emergency Fund. The union says Helping Hand decided to launch the Fund after Pamodzi failed to honour an agreement reached between the parties. “In terms of the agreement, the mine would have paid out a further 25% of employees’ February salaries by Friday. However, on Friday morning only 10% had been paid to employees. A tremendous social welfare crisis is unfolding in the Welkom area where more than 4 000 employees have been waiting more than two weeks for their full salaries,” says Dirk Hermann.

According to Hermann, problems at Pamodzi have been surfacing since October last year when employees received their salaries late in the month, as was the case in December. Barely a month later, employees were told they would not receive their salaries on time. In addition, January’s salaries were paid to employees in two instalments. February’s late payment was the last straw for employees as this led to a strike that has been raging on for the past 10 days at the mine.

Hermann says due to the late payments, employees’ medical aid funds have been frozen for a period while many are already experiencing considerable food shortages. “According to our calculations, each mineworker supports eight to 11 dependants, which ultimately means that an estimated 32 000 to 44 000 individuals here will be without the most essential food and supplies shortly before winter.”

Solidarity announced that donations to Helping Hand in Welkom will be appreciated. There is a particular need for non-perishable food, baby products, cleaning materials and toiletries. To make a donation, contact Solidarity Helping Hand during office hours at 0861 25 24 23. Pamodzi could not be reached for comment.