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VILLAGE MAIN REEF LIMITED - Court interdict granted

Release Date: 17/07/2013 17:00
Code(s): VIL     PDF:  
Wrap Text
Court interdict granted

VILLAGE MAIN REEF LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1934/005703/06)
JSE share code: VIL ISIN: ZAE000154761
(“Village” or “the company”)


COURT INTERDICT GRANTED


Village today provided an update on the unprotected strike involving 918 employees at its ConMurch antimony/gold
mine in South Africa’s Limpopo Province (“ConsMurch”). The unprotected strike began as a sit-in by about 100
employees on 12 July 2013. In addition, access to the mine’s Monarch Decline Shaft has since been illegally blocked
by certain striking employees, endangering both the asset and the safety of employees. These employees are in
effective control of the shaft and are preventing negotiators from accessing the underground employees.

Village has obtained a Labour Court interdict in terms of which the dismissal of employees engaged in the unprotected
strike will now proceed. Assistance has also been sought from the South African Police to gain access to the Monarch
Decline Shaft and to secure access to the shaft to prevent any further damage to property. Management has not
stopped the employees receiving food, and has not switched off water or electricity to the affected shaft. The rest of
the operation has also been affected and there is no production at the mine. The employees are not more than 20m
underground behind a gate access, which is in their control. There is no risk to their health and safety whatsoever.

“Regrettably, attempts so far to engage the strikers in dialogue through their representative union, the National Union
of Mineworkers (“NUM”), have failed to resolve the matter. Management continues to constructively engage with
NUM representatives with the primary aim of bringing an end to the unprotected strike,” the company said.

“Village is a signatory to the Framework Agreement on a Sustainable Mining Industry signed on 3 July 2013. This is
not something we take lightly and we are committed to taking steps to resolve differences between management and
labour, in the interests of the industry as a whole.”

Management understands that the strikers wish to receive either a lump sum payout from an Employee Share Trust, or
that they receive dividend payments as participants in the Trust.

The Employee Share Trust was set up with a 23.4% shareholding in the company and the beneficiaries of the Trust are
all the employees of ConsMurch. This Trust was established at no cost to employees.

Since acquisition, Village has invested significant amounts of capital at ConsMurch, to refurbish the metallurgical
plant, acquire trackless mining equipment and develop underground infrastructure. This investment has been
undertaken to develop the operation to its potential, and to sustain its operation – and jobs – in the future. Therefore,
ConsMurch has not yet been in a position to return investment, e.g. dividends, to either of its shareholders – namely
Village and the Employee Share Trust.

The company calls on unions and employees to end the strike and to cease any further threat to or damage to property.
The unprotected strike action threatens the viability of the mine and consequently jobs.

17 July 2013


Contacts:
MD Village Gold
Ferdi Dippenaar
Email: ferdi@2tp.co.za
Mobile: 082 807 3684

Dalu Ncube
MD ConsMurch
Email: DNcube@villagemainreef.co.za
Mobile: 072 334 1965

Issued by:
Russell and Associates
Tel: 011 880 3924
Email: charmane@rair.co.za/jan@rair.co.za


Sponsor

Java Capital

Date: 17/07/2013 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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