JOHANNESBURG (miningweekly.com) – Gold major AngloGold Ashanti on Friday agreed to provide R10-million for wages at Pamodzi Gold’s provisionally liquidated Orkney gold mine and simultaneously began a five-day technical study into the impact of a possible closure of the Orkney mine.

AngloGold Ashanti corporate affairs manager Joanne Jones told Mining Weekly Online that a request had been made for AngloGold to provide R10-million for the payment of Pamodzi Gold wages and that AngloGold had acceded to that request.

SBT Trust liquidator Enver Motala told Mining Weekly Online on Thursday that he was in discussions with AngloGold, which had toll treated gold ore for the Orkney gold mine, prior to it being placed on care-and-maintenance. Jones could not confirm that Pamodzi Gold owed AngloGold some R98-million for the toll-treating service.

On Mining Weekly Online’s report that AngloGold was in funding talks with the liquidator, Jones said: “The talks themselves weren’t specifically funding talks, but rather talks relating to a technical project that is now being undertaken by AngloGold Ashanti.”

The technical project would include a risk assessment of the impact that a closure of Pamodzi Gold’s Orkney mine would have on safety, as well as other technical issues.

“This was the prime focus of the discussion. Then there was a request from the liquidator for wage support,” she added.

While the Mining Weekly Online report had indicated that AngloGold had originally refused to make any contribution to wages, Jones said that her AngloGold colleagues, who were present in the meeting, had assured her that that was not the case.

“We were requested to provide R10-million for wage support and we agreed to that request and we have subsequently actioned it for payment,” Jones said, adding that AngloGold Ashanti was doing its best to mitigate potential social impacts on the local community.

Meanwhile, the technical desktop study under way was expected to be completed in five days.

Engineering Labour Hire CEO Jan van den Berg on Thursday told Mining Weekly Online that AngloGold Ashanti was being approached to assist with funding to return Orkney to operational status, and believed the amount being sought was R20-million. It was Engineering Labour Hire, owed R21,8-million, which brought the provisional liquidation order against Pamodzi Gold’s Orkney mine. Provisional liquidation was granted in the Pretoria High Court, which set a return date for April 14.

Motala estimated that Orkney needed a cash injection of between R25-million and R40-million.

JIC Mining Services CEO Jagdish Parekh told Mining Weekly Online that there was scope to save the Orkney mine.

“It’s purely an operational turnaround strategy that we are proposing. We believe that the mine can be saved and that it should be saved,” Parekh said.

Van den Berg said that 1 000 Engineering Labour Hire personnel had not been paid for two months and some were already too under-nourished to resume work underground.

“AngloGold’s assistance can make a huge difference, and it will give support to JIC to come on board,” Van den Berg said.

Pamodzi Gold CEO Peter Steenkamp told Mining Weekly Online last week that AngloGold had been most supportive: “AngloGold has really bent over backwards to help us,” he said.