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CRD - Central Rand Gold Limited - Central Rand Gold awaits Department of Mineral

Release Date: 05/09/2011 08:00
Code(s): CRD
Wrap Text

CRD - Central Rand Gold Limited - Central Rand Gold awaits Department of Mineral Resources` response to its timeous presentation and documentation Central Rand Gold Limited ("Central Rand Gold" or the "Company" or the "Group") (Incorporated as a company with limited liability under the laws of Guernsey, Company Number 45108) (Incorporated as an external company with limited liability under the laws of South Africa, registration number 2007/0192231/10) ISIN: GG00B24HM601 Share code on LSE: CRND Share code on JSE: CRD CENTRAL RAND GOLD AWAITS DEPARTMENT OF MINERAL RESOURCES` RESPONSE TO ITS TIMEOUS PRESENTATION AND DOCUMENTATION In response to recent media speculation, Central Rand Gold Limited can confirm that it has responded in full to the South African Department of Mineral Resources (DMR) in terms of a compliance notice it received from the DMR on August 5, 2011. In terms of this notice, the DMR said it was considering re-evaluating the Company`s Mining Right as a result of certain elements of "non-compliance" with Social Labour Plan (SLP) requirements of its New Order Mining Right. This plan was based on its original 2008 operational plans submission which had envisaged a considerably larger resource base and operation. On August 24 2011, a presentation was made by the Company to the DMR, outlining how the Company is rectifying these issues of "non-compliance". The Company advised in its Interim Report for the six months to June 30 - issued on RNS and SENS on August 26, 2011 - that it was engaged in discussions with the DMR. The Interim Report stated: "A request has been made to the DMR to review the Company`s current and future Social Labour Requirement commitments so that they reflect the operational reality of a reduced short-term resource base more closely. The reduction in the short term resource base is as result of a number of factors, including AMD, which have impacted the Company and other mining companies in the Witwatersrand basin. CRG, in its first two years of operations, spent over R18m on various Social and Labour Plan projects as well as recently spending R35m on acquiring the water pumps that would be required to stop the rising water table in the Central Basin, despite having no legal liability to do so. CRG believes that based on the resource base available to it, which has substantially been flooded, it has substantially complied with both the spirit and the intent of the original Social and Labour Plan and furthermore the Minerals and Petroleum Resource Development Act. Furthermore, CRG has made commendable progress in its employment equity and procurement programmes to involve local communities and black-owned entities. It is important to note that the Company has until September 9 2011 to submit further documentation to the DMR, if it feels that this is necessary. Central Rand Gold is waiting for an official response from the DMR and continues to evaluate its submission and will inform shareholders accordingly. The Company remains confident of resolving these important issues with the relevant South African authorities and developing the considerable economic resources it has discovered during its short tenure in the Central Rand for the benefit of all stakeholders, including shareholders, local communities and the people of South Africa. For further information, please contact: Central Rand Gold +27 (0) 11 674 2304 Johan du Toit / Patrick Malaza Evolution Securities Limited +44 (0) 20 7071 4300 Chris Sim / Neil Elliot Merchantec Capital +27 (0) 11 325 6363 Roger Pitt / Monique Martinez Buchanan Communications Limited +44 (0) 20 7466 5000 Bobby Morse / James Strong Jenni Newman Public Relations (Pty) Ltd +27 (0) 11 506 7351 Jenni Newman September 5, 2011 Johannesburg JSE Sponsor Merchantec Capital Date: 05/09/2011 08:00:08 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

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