Province moves to mop up liquidation fallout at closed Grootvlei gold mine
JOHANNESBURG (miningweekly.com) – The Gauteng provincial government is taking steps to assist communities in the aftermath of the Aurora liquidation at the abandoned Grootvlei gold mine in Springs, where the mine hostel has been condemned as being unfit for human habitation.
New Gauteng Human Settlements and Cooperative Governance MEC Jacob Mamabolo said on Wednesday that his provincial government would be working with the City of Ekurhuleni to assist more than 250 families left stranded in the wake of the liquidation of Aurora, formerly headed by chairperson Khulubuse Zuma, nephew of South African President Jacob Zuma, MD Zondwa Mandela, grandson of the late Nelson Mandela, and director Michael Hulley, President Zuma's former attorney.
Aurora, which bought Grootvlei gold mine out of the liquidation of the formerly JSE-listed Pamodzi Gold, failed ignominiously in its bid to resuscitate the now-closed mine, where there were also acid mine drainage issues that forced the Department of Water Affairs to intervene.
Mamabolo visited the mine with Premier special adviser Eric Xayiya and engaged with the residents, who are without basic services including electricity, water and sanitation.
They are also calling for increased security to combat the area’s crime.
Mamabolo pledged to call an urgent meeting with stakeholders to arrive at a comprehensive intervention plan.
He described the mine hostel as being unfit for human habitation in its present state and expressed sadness at the hardship of those who had come to Grootvlei to earn a living but had been left penniless without anything to show for their years of service.
The inexperienced Aurora bought the liquidated Pamodzi Gold East Rand assets in September 2009, the last piece of the stricken Pamodzi Gold group to be bought out of liquidation.
In the same month, the experienced Harmony Gold acquired Pamodzi Gold’s Free State assets and turned them to positive account.
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