Village cuts funding to ‘unsustainable’ Blyvoor
JOHANNESBURG (miningweekly.com) – Village Main Reef has suspended all financial assistance to the Blyvooruitzicht Gold Mining Company (Blyvoor), stating that the current gold price, coupled with rising costs, and a series of recent operational infrastructure challenges has rendered the operation “unsustainable”.
Since assuming operational control at Blyvoor from DRDGold in June last year, the diversified miner has invested some R190-million in sustaining operations.
However, the mine incurred a loss of R88-million in the three months to June 30.
“We will work closely with DRDGold, which remains the majority shareholder of the mine, in determining the next steps,” the company said in a statement on Tuesday.
As part of an overall turnaround strategy, Village earlier this year concluded a restructuring plan at Blyvoor, resulting in some 960 employees being retrenched.
“Though regrettable, the resulting cost benefit thereof should be evident in the June quarter and will contribute to the ongoing sustainability of the mine,” Marius Saaiman, the former joint CEO of the group, said in April.
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