JOHANNESBURG (miningweekly.com) – The South African government’s Department of Minerals and Energy (DME) on Thursday deposited R7,5-million into the account of the provisionally liquidated Pamodzi Gold East Rand to enable it to fight off the dangerous rising water onslaught at the Grootvlei gold mine.

DME DDG Jacinto Rocha sent a text message to Mining Weekly Online to confirm the depositing of the R7,5-million pumping subsidy for the months of January, February and March, about which there had been some consternation.

Pamodzi Gold GM East Rand operations Graham Chamberlain then reiterated to Mining Weekly Online that the funds, which on Wednesday were thought to be missing, had been received.

“Yes, we’ve got it,” Chamberlain enthused, simultaneously informing Mining Weekly Online that he had been barred from making any further statements to the media by lead provisional liquidator Enver Motala, who has not replied to two Mining Weekly Online messages left on his cellphone.

Also not replying to calls are provisional liquidators Allan Pellow and Deon Botha, as well as liquidator’s assistant Gavin Gainsford of KPMG.

When the government task team on mine water met in Pretoria on Thursday to discuss the critical situation, the Department of Water Affairs and Forestry (Dwaf) representative insisted that the Grootvlei underground pump station be saved, Mining Weekly Online understands.

Dwaf deputy director Marius Keet, who is in charge of managing the Gauteng province’s water quality, told Mining Weekly Online earlier: “We cannot allow that mine to flood, it’s as simple as that.”

He said that if the pump station were to be flooded, it would be exceedingly challenging to rebuild it in order to prevent the decanting of acid mine drainage (AMD) water on to the surface with devastating environmental consequences.

Chamberlain has managed to secure delivery of lime, flocculant and oxygen to ensure that treated AMD can be safely released into the nearby wetland.

Pumping is being maximised at night to take advantage of the low Eskom electricity tariffs during the off-peak.

Some R20-million was needed on Thursday to pay Pamodzi Gold East Rand’s 4 500 employees.

Meanwhile, Bloomberg News reports that JSE-listed gold-miner Simmer & Jack Mines will make a decision in the next two weeks on whether to buy Pamodzi Gold’s Orkney mine, which is also in provisional liquidation

It also reports that AngloGold Ashanti, which processes Orkney’s gold, will provide a second R3-million loan to pay workers at Orkney.

Liquidators have already repaid the previous R10-million loan, made for the payment of salaries.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.