Speaking on behalf of Mervyn Carstens, the CEO of the Pooling and Sharing Joint Venture (PSJV) between Alexkor SOC and the Richtersveld Mining Company, secretary Raygen Phillips says 152 positions were affected by the recent retrenchment process, this includes 48 temporary positions. It has been reported the Central South African mine employs just under 900 people.

The recent figures not only contradict earlier figures provided by the mine but also go against a recent letter from Carstens to concerned mining contractors dated July 3 with the company’s letterhead. In it, he says: “The PSJV has just finalised a very difficult and sensitive retrenchment process during which more than 50% of our employees were affected. We have further rationalised cost structures at the mine in an attempt to continue to operate.”

The joint venture maintains its current financial position has been due to adverse sea conditions which had a significant impact on the production of marine contractors.

Deputy Director-General of Public Enterprises, Kgathatso Tlhakudi, told OFM News previously PSJV does not qualify for a bail-out. Tlhakudi says this is due to a plethora of reasons, including the fact that the mine is not technically a state-owned company but rather a joint venture in which the state is merely a partner.

“The joint venture does not qualify for direct support and also because this is a business, it must be sustainable on its own. So that’s the challenge that we are sitting with. We also believe, were it not for other things that are going on at that mine, including allegations of corruption, or instances where good performing contractors were terminated without adequate reason, the business would not be in the situation that it is in.”

OFM News