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Western Basin and Central Basin involvement
Niël Pretorius, CEO
June 2011
www.drdgold.com
Relevant subsidiary structure: West Wits
2
DRDGOLD
West Wits Holdings
West Wits Mining
www.drdgold.com
Relevant subsidiary structure: ERPM
3
DRDGOLD
DRDSA
ERPM
www.drdgold.com
Western Basin
4
1995 – 1999: West Wits mines the area under two tributary
agreements. The rock it extracts contributes
approximately 0,5% to the total underground excavation
2006: West Wits agrees with Mintails to establish a business
trust to seek a self-sustainable solution for AMD in the
region
2007: The trust structure is replaced by a S21 company,
Western Utilities Corporation (WUC) pursuant to a
DWAF directive with a structure agreed to by DWAF
2007-2011: DRDGOLD contributes R23 980 204 in direct and indirect
water treatment & research costs;
DRDGOLD dedicates the commercial upside of a rock
dump (R42m in value) at WW to a special purpose trust
for future costs
www.drdgold.com
CENTRAL BASIN: ERPM
5
2004-2008 ERPM incurs R41m direct net expenditure for pumping and treating Central Basin water
2008: ERPM stops pumping in terms of a Section 54 work stoppage order issued by the DMR, and its pump-station floods
2009: ERPM commits shaft infrastructure and its HDS plant to WUC (R300m-R400m in value) and agrees to a guaranteed water off-take agreement with WUC post regional implementation.
Currently: ERPM continues to fund shaft and plant holding costs (Eskom, security, etc) at R280 000 per month pending implementation of solution.
www.drdgold.com
Current initiatives
Research project with leading academic institution assessing viability of alternative water treatment
technology using ERPM ice plant Alignment with TCTA
assisting with execution of DWA mandate Maintenance of reserve power allocation & infrastructure
to ensure adequate power for submersible pumps, plant
and shaft R7.8 million expended from Oct 2008 to present
6
www.drdgold.com
Conclusion
DRDGOLD supports the WUC proposal it is a full discharge of the terms of 2005 directive it provides the only self-sustaining, “zero-cost-to-taxpayer” solution it is the only proposal that will survive mine closures
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Western Basin and Central Basin involvement
Niël Pretorius, CEO
June 2011