Aurora may have failed to pump water

Johannesburg - Preliminary investigations show that Aurora Empowerment Systems might have failed to pump acid mine water from mine shafts under its control, the Pamodzi Gold mine liquidators said on Thursday.

"Our preliminary investigations have revealed that Aurora may have failed to meet some of their obligations in terms of the agreement which failure was one of the contributing factors leading to the cancellation of the interim agreement," the joint provisional liquidators said.

"One of the conditions imposed by the joint provisional liquidators in terms of the interim agreement concluded with Aurora was to specifically agree with Aurora that it shall continue with the water pumping operations on the mines."

However, Aurora allegedly did not do this.

The liquidators were investigating "whether this failure was the result of financial constraints, as Aurora alleges, or other factors which may imply culpability".

Last month, the liquidators ordered Aurora to vacate the premises of Pamodzi Gold mines in Springs, on the East Rand, and Orkney, in the North West.

Pamodzi went into liquidation in 2009, after which the liquidators accepted a R600m bid by Aurora for the mines.

Aurora - headed by former president Nelson Mandela's grandson Zondwa, and President Jacob Zuma's nephew Khulubuse - failed to come up with the funding and according to unions, stripped the mines of their assets.

Earlier this week, the department of mineral resources (DMR) reportedly said it had opened a case with the SA Police Service and was receiving advice on whether criminal charges could be laid against the liquidators or Aurora Empowerment Systems, or both.

The liquidators said they had taken "cognisance" of the DMR's statement on the potential criminal liability of Aurora for its alleged failure to pump the mines.

"The liquidators have taken all steps and employed all measures available to them to limit the adverse impact which has resulted from Aurora's inability to pump water from the mine shafts."

They also denied any criminal liability and said such charges would be "spurious".

The liquidators said they welcomed any investigation into the circumstances which might have contributed to the current state of the mines, while they would conduct their own investigation.

"The liquidators are actively involving the DMR in the process and inviting proposals from the DMR on how to address the problem, with no funds available to the liquidators."

The liquidators pointed out, however, the problem of acid mine water drainage was not a new problem and not limited to the Pamodzi mine.

It "relates to the entire Witwatersrand basin and has been a major problem for years already, to the knowledge of the DMR".

"However, the liquidators will assist any organ of state willing to investigate this matter and will afford their complete cooperation to the DMR."

In the meantime, the liquidators are trying to find a new buyer for the Pamodzi assets.