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DRD to liquidate N West ops

Johannesburg - Mining group DRDGold will apply for the provisional liquidation of its North West Operations on Tuesday, the company announced.

The company's North West Operations were undergoing an operational review in terms of Section 189 of the Labour Relations Act after the operations recorded losses exceeding R270m in the six months to December 31 2004.

It also recently suffered an earthquake and aftershocks that killed two miners and left parts of the nearby mining town of Stilfontein damaged.

The resultant closure of two shafts saw production drop by 30%.

Tuesday's statement said provisional liquidation application followed the passing of a resolution by the board of directors of Buffelsfontein Gold Mines Limited (BGML), known as the North West Operations.

BGML is a wholly owned subsidiary of DRDGold.

Meanwhile, Finance24's sister publication Sake reported on Tuesday that DRDGold dropped plans to have JCI liquidated after Brett Kebble delivered a cheque of R5m to DRD on Friday.

The R5m was the last installment of a R37.5m bill that Kebble had to foot DRD in terms of an Appeal Court judgement a month earlier.

Kebble paid R26m last week and used shares in Matodzi Resources, a black empowerment group, as security for the outstanding amount after DRD had the bailiff go ask for the money.

DRD rejected the Matodzi shares as security and ordered its legal council to apply for JCI's liquidation.

On Thursday, however, JCI send a cheque and another for R5m on Friday to settle the outstanding amount.

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