Johannesburg - Great Basin Gold said its South African unit
Southgold Exploration filed for creditor protection a week after it suspended
operations at its Burnstone mine.
Great Basin suspended production at the mine in the
Witwatersrand Goldfields last week due to its inability to continue funding
operations at the mine.
The mine, which started production in February last year,
was producing about 5,000-6,000 tons of ore per day.
The company is trying to negotiate a debtor-in-possession
working capital loan with certain lenders to pursue an orderly shutdown of the
mine.
During the process of negotiation for financing, Great Basin
plans to restructure or sell Southgold's assets.
South African miners have been grappling with union militancy, demand for higher wages and proposed higher mining taxes.
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