Due to multifaceted sequence of events, management of Vantage Goldfields (Pty) Limited was left no option but to suspend operations at Barbrook Mine on December 13. This action has led to the company being placed into Business Rescue with immediate effect.

Despite the disastrous events encountered by the company at its Lily Mine during February, the developing Barbrook Mine succeeded to perform to expectation during the first six months. Apart from the Lily Mine tragedy, which placed an extra burden on procedures, disruptions predominantly from the mining contractor and certain elements of the local community, further hindered operations. During the past two months, these disturbances became increasingly more intensive and caused substantial losses in estimated gold production.

Since late November management and employees were prohibited to access the mine site due to unlawful blockading of the public road. In spite of managements’ frequent negotiations and interventions with the contract workforce and community, this state of affairs increasingly deteriorated. As a result of these illegal work stoppages, there has been no gold production to date and lost revenue is now in excess of R20 million.

CEO of Vantage Goldfields, Mr Mike McChesney said the decision to place Barbrook Mine under business rescue is necessary to protect the company and its future.

Despite these challenges, management remains hopeful. “Negotiations with potential investors are well advanced and management will persevere in an effort to achieve a positive outcome for all stakeholders,” said McChesney.

Issued by: Ama’Zone Media t/a Africa InTouch
Written by: Anchen Coetzee
On behalf of: Vantage Goldfields (Pty) Limited 
Photos: Anchen Coetzee