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Johannesburg - DRDGold might have to stop underground production at its ERPM gold mine because of water issues, the company said in its September quarter results which showed production flat at 70 861 ounces quarter-on-quarter.
High carbon dioxide levels at the south-west vertical shaft - dedicated to pumping water from the Central Wits Basin - killed two workers in September. It has led to a halt of pumping operations in October.
The source of the carbon dioxide is unknown and the ventilation systems in place are unable to clear it. It will take time and money to step up ventilation at the shaft, something DRDGold does not have in abundance.
Rising water levels in the Central Wits Basin threaten to decant into the contiguous Hercules Basin in the next 30 days. Water from melted cooling ice at the main working areas at ERPM is pumped into the Hercules Basin.
Increased pressure in the Hercules Basin because of fresh inflows of water means the pumps at ERPM's sole production shaft at far east vertical (FEV) will be unable to cope and clear that shaft of water.
One solution is to stop sending 2 100 tonnes of ice down FEV every day, but then rising temperatures in the uncooled working areas make it unsafe to send workers underground.
DRDGold "may have no other option for the time being than to suspend drilling and blasting operations".
No blackmail
ERPM's underground operations produced 10 899 oz of gold in the September quarter, a far cry from the 17 684 oz in the same period a year ago. Cash operating costs have leapt to $1 062/oz from $647 a year earlier.
ERPM forms a collection point for the underground water that flows from old workings further to the west and immediately south of Johannesburg, where Central Rand Gold is reviving mining operations.
DRDGold is emphatic that its suggestion that it might have to stop underground work at FEV is not designed to blackmail the government into increasing a pumping subsidy, or to hit back at the state for safety stoppages.
"This is not primarily a cost issue. This is DRDGold putting its hands up and flagging a problem that it cannot deal with by itself any longer.
"It needs the department of minerals and energy, the department of water affairs and forestry, labour and other mining companies to come and assist it," said spokesperson James Duncan.
Outgoing CEO John Sayers said: "We will have to investigate what possibilities there may be to resume drilling and blasting at a later stage, but it would seem that the necessary upgrade to FEV Shaft's pumping capability could be both lengthy and costly."
- Miningmx.com
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