PRESS RELEASE ON BEHALF OF THE JOINT PROVISIONAL LIQUIDATORS OF PAMODZI GOLD EAST RAND (PTY) LTD (IN PROVISIONAL LIQUIDATION), NIGEL GOLD MINING COMPANY (PTY) LTD (IN PROVISIONAL LIQUIDATION), CONSOLIDATED MODDERFONTEIN MINES LIMITED (IN PROVISIONAL LIQUIDATION), CONSOLIDATED MODDERFONTEIN MINES 1979 LIMITED (IN PROVISIONAL LIQUIDATION), THE GROOTVLEI PROPRIETARY MINES LIMITED (IN PROVISIONAL LIQUIDATION) and PAMODZI GOLD ORKNEY (PTY) LTD (IN PROVISIONAL LIQUIDATION)

14 MARCH 2012

The joint provisional liquidators today commented on the deceased illegal mine workers in the Grootvlei area recently reported on in the media.

Despite continually sealing off abandoned and unused shafts and introducing deterring efforts to ward off potential trespassers, persons have continued to gain unlawful access to underground shafts.

"The latest incident did not take place on any of the areas under the control or in the possession of the joint liquidators of Pamodzi. Illegal miners use innovative ways to gain illegal access to old abandoned underground mining operations with no respect for the safety of themselves or any other person for that matter" Engelbrecht said.

"The latest incident is again proof that the illegal miners, who are mostly foreign nationals, are a law unto themselves. When we were informed of the incident, we took steps to locate the illegal miners, and found that the incident occurred on an area and location not owned or controlled by the Pamodzi estates.

Our staff found one injured illegal miner who was taken to hospital for medical treatment. The injured person informed our rescue staff that an undisclosed number of illegal miners were buried under the fallen rock.  The DMR and SAPS were informed of the incident. During subsequent discussions with the DMR, we tendered to assist in any rescue operation or in attempts to recover the bodies.

The Chamber of Mines tendered to pay for the services of Specialised Mining Rescue company, who investigated and visited the scene and reported that no living persons were located underground and that any attempt to recover deceased persons would endanger the lives of the rescue personnel themselves" Engelbrecht said.

"This problem is not new at all, nor is it limited to the east Rand. We have reported the problem to the DMR on several occasions in the past but the problem seems to persist. In fact, as soon as we seal an entrance or potential access point, the illegal miners gain accesses from a different location or simply re open what we have sealed."

"Apart from these preventative measures, we have caused hundreds of illegal miners to be arrested. We have not been asked to testify in any court case which leads us to believe that all the illegal miners pleaded guilty or were released."

"We regret the loss of life and have the utmost sympathy for the families of the deceased persons. We are at our wits-end however, as to how to stem this problem in our area of control and call upon all persons to refrain from entering dangerous abandoned mine shafts for their own safety."

The joint provisional liquidators wish to thank the chamber of miners for their assistance in this latest incident.

The joint provisional liquidators confirm that they are in the final stages of negotiation for the sale of the Grootvlei mine which will, hopefully, stem the tide of further incidents of this nature after which the new owner may take further positive steps to safeguard the mine shafts.

In addition, the joint provisional liquidators would like to stress that they have taken all reasonable steps, given the problems they have faced in the administration of this estate, to wind up the affairs of the Pamodzi Group of Companies as soon as possible.

"This estate is unique in so many ways. We have had liquidators removed, we have had enquires where we faced recalcitrant witnesses and persons who have tried to frustrate the speedy conclusion of the liquidation to the best benefit of all the parties concerned."

"The plight of the workers has been paramount in our planning and consideration. Unfortunately, the law takes its course and does not always move as fast as we want it to. We have employed legal teams who are literally working around the clock to institute actions and launch applications which will hopefully result in the recovery of monies which may be utilised to the benefit of the workers. "

"We are hopeful that the creditors of the estates will see the benefits of our efforts very soon."

Statement issued by Johan Engelbrecht on behalf of the Joint Provisional Liquidators, March 14 2012

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