DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) says it is considering re-starting operations at its Far West Gold Recoveries (FWDR) surface retreatment operation at Carletonville, south-west of Johannesburg, in consultation with government and organised labour.
DRDGOLD CEO Niël Pretorius.
CEO Niël Pretorius says: “Following the shutdown of operations on Thursday, 26 March 2020 in terms of South Africa’s national lockdown, DRDGOLD has considered various options to recommence limited operations to sustain infrastructure and soften the impact of the stoppage without exposing employees to increased risk.
“Key considerations are the maintenance of hygiene, social distancing, screening capacity and the ability to provide medical assistance and isolation in the event of infections.
“It is said that South Africa is lagging international infection trends by approximately two weeks. Hence, exposure to close-proximity situations – for example, commuting by way of public transport – is at this stage among the most important challenges informing the decision to start up at sites located in and around the Johannesburg metropolis.”
At FWGR, however, Pretorius says, social distancing associated with the commute is not nearly as complex.
“It is a much smaller footprint with employees living much closer to the operations. This situation, coupled with all the other preventative protocols in place, means the FWGR working environment poses a considerably lower risk of infection than, for example, the workspace of those involved in retail and public transport.
Chapter 2, section 11A and Annexure B, section B.22 of the Disaster Management Act Regulations issued by the Department of Co-operative Governance and Traditional Affairs (CoGTA) define gold mining and refining as essential services, exempt from the restrictions imposed by the lockdown announcement.
“However, to move simply on a technical interpretation of the Act would be folly and for management to assume exclusive responsibility for the sustaining of health, jobs, social capital, the environment and the economy would be inappropriate in these circumstances,” Pretorius says.
“This situation poses a challenge unlike anything any of us has ever experienced. Taking hard decisions is the essence of management, and invariably requires the weighing up of conflicting interests and finding a compromise of sorts. This time there is no balancing act – this situation requires that we defy the laws of physics, in that it forbids any compromise on the side of health and safety.
“We have studied the guidelines to reduce the risk of infection and we have implemented protocols in terms of hygiene and social distancing which will allow us to responsibly conduct limited production at FWGR.
“We have briefed our employees of the situation and have called for volunteers to resume work. We are encouraged that there are more volunteers than required at this stage – only 60% of the typical shift complement will be deployed at any given point in time.”
A shared responsibility
Pretorius says the situation and its implications pose a burden beyond that which management could reasonably be expected to carry by itself.
“The State, as the representative will of the people of the country, and organised labour as the voice of its members, share this responsibility.
“Consequently, on Tuesday, we wrote to the Department of Mineral Resources and Energy (DMRE), explaining the situation and requesting its endorsement. On Thursday (02 April) we had a very constructive telephone engagement with the Department in which a number of specific issues were discussed in terms of assurances required and the content of protocols. This conversation has paved the way for the limited resumption of reclamation activities, and we will build on it in the next few days.
“We have also written to organised labour, NUM and AMCU, and have invited their nominated representatives to attend a presentation on the details of the deployment of staff, the risk protocols that are in place and the support offered to employees who present with symptoms of infection. We have also offered to take them on a site tour at FWGR to show exactly what has been put in place to manage the risk of infection.
“We are confident that, in the spirit of collaboration and solidarity called for by South Africa’s President, we will receive the support we have requested.”