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TRANS HEX GROUP LIMITED - Restructuring of Lower Orange River Operations

Release Date: 22/02/2016 08:43
Code(s): TSX     PDF:  
Wrap Text
Restructuring of Lower Orange River Operations

TRANS HEX GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1963/007579/06)
Share code: TSX
ISIN: ZAE000018552
(“Trans Hex” or the “Company”)

RESTRUCTURING OF LOWER ORANGE RIVER OPERATIONS

Trans Hex has concluded an agreement with the National Union of Mineworkers to change the
production shift system at the Company's Lower Orange River ("LOR") Operations, consisting of the
Baken and Bloeddrif mines, effective from Monday, 29 February 2016.

The change is in line with the Company's strategy of responsibly managing the ageing LOR assets in
the final years of their economic life cycles by optimising mining and treatment volumes, together
with cost reductions and improvements in efficiencies across the board. The aim is to extend the
viable life-of-mine of each operation for as long as possible, whilst constantly managing the risks
inherent to mature alluvial mines.

The LOR Operations will change from a four-shift system, running seven days per week, to a
three-shift system, working a five and a half day week. Overburden stripping rates and the volumes
of gravel mined and treated will be adjusted to ensure the most sustainable model for each mine
going forward.

A total of 125 employees (22% of the workforce) have accepted voluntary retrenchment packages,
effective on Monday, 29 February 2016. The majority of the volunteers are older employees with
long service. The total cost of the restructuring programme is expected to be in the order of
R47 million, including severance payments.

Further information in this regard will be published in the Company's annual results early in June and
in the 2016 Integrated Annual Report.

Cape Town
22 February 2016

Sponsor
One Capital

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