JOHANNESBURG (miningweekly.com) – As the future of the distressed Lily mine hangs in the balance, trade union Solidarity has called on all parties to expedite the processes under way and make a decision on the mine’s future.
With every potential transaction thus far having failing to rescue the idled operation over the past 18 months, a potential third suitor may be able to bring the operation into business rescue – a process that has yet to be implemented more than a year after its formation.
In August, the cancellation of the latest proposed buyout of the troubled Lily and Barbrook mines was a major setback that reinstilled further uncertainty for the mines’ workers and the surrounding communities.
Solidarity mining deputy general secretary Connie Prinsloo on Wednesday said creditors were losing patience, with one already having brought a liquidation application against the mine, which is set to be heard on January 29, 2018.
“If this liquidation application is successful, the business rescue process would be replaced by an insolvency process, and a liquidator would be appointed to administer Lily’s estate,” she said.
However, a possible third suitor, which had apparently issued a notice to the creditors of a binding agreement to acquire Lily mine owner Vantage Goldfields’ shares, has said it is committed to implementing the business rescue plan.