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Pretoria - Workers at Pamodzi Gold's former Free State assets believe it would be in their best interests if Harmony Gold becomes the new owner, the Competition Tribunal heard on Friday.
After this submission by the Competition Commission, the transaction was provisionally approved by the tribunal.
However, the Harmony takeover will result in almost 1 000 people at the mine losing their jobs.
The workers, 90% of whom are members of the National Union of Mineworkers (Num) and Solidarity, have reached a binding agreement with Harmony that 2 000 of the 3 000 employees will be reappointed within a year.
The tribunal approved the deal, on condition that this agreement is honoured.
Pamodzi was put into provisional liquidation earlier in 2009.
A Competition Commission probe found liquidators had done everything possible to serve the best interests of Pamodzi and its employees.
Aware of consequences
The liquidators put Pamodzi up for sale as a going concern. They received three offers, including one from Harmony and another from Virgile Mining.
Virgile maintained its takeover of the assets would not lead to any job losses.
However, the workers accepted Harmony's offer.
It appears that 800 employees were foreigners, who have apparently returned to their countries of origin.
Virgile initially lodged an objection to the transaction and asked for an opportunity to make oral presentations on why the Harmony deal should be prohibited.
However, shortly before the tribunal hearing was to begin, Virgile announced that it would no longer attend.
Maarten van Hoven, head of mergers at the Competition Commission, believed it was clear that the creditors, liquidators and unions agreed on Harmony as the preferred bidder.
The commission, he said, believed employees were fully aware of the possible consequences. According to Van Hoven, the workers are in dire straits and any further delay will simply cause further hardship.
- Sake24.com
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