Speaking on behalf of Mervyn Carstens, the CEO of the Pooling and Sharing Joint Venture (PSJV) between Alexkor SOC and the Richtersveld Mining Company, secretary, Raygen Phillips says Tlhakudi’s allegations of corruption are baseless, unfounded and malicious.

PSJV adds they reserve their rights in this matter.

The Public Enterprises DDG told OFM News previously the venture does not qualify for a bailout because its’s not technically a state-owned company but rather a joint venture in which the state is merely a partner. “The joint venture does not qualify for direct support and also because this is a business, it must be sustainable on its own. So that’s the challenge that we hare sitting with. We also believe, were it not for other things that are going on at that mine, including allegations of corruption and instances where good performing contractors were terminated without adequate reason, the business would not be in the situation that it is in,” says Tlhakudi sternly.

The mine is currently under severe financial strain. The mine and the National Union of Mineworkers (NUM) in the Western Cape Region attribute this to “adverse sea conditions as well as the lower production and revenue received from the marine operations”. In late June, NUM released a statement criticising the Public Enterprises Department for not intervening in the ongoing crisis at the mine, following the revelation that the mine would be retrenching nearly 200 of its employees.

Phillps confirms 152 positions were affected by the recent retrenchment process, this includes 48 temporary positions. It has been reported the Central South African mine employs just under 900 people. The recent figures not only contradict earlier figures provided by the mine but also go against a recent letter from Carstens to concerned mining contractors dated July 3, with the company’s letterhead. In it, he says “the PSJV has just finalised a very difficult and sensitive retrenchment process during which more than 50% of our employees were affected. We have further rationalised cost structures at the mine in an attempt to continue to operate”.

NUM was also highly critical of the continuation of the moratorium that was placed on Alexkor SOC to invest or contract new business. “The moratorium remains in force knowing that under the prevailing circumstances the PSJV is unable to service its debt to Alexkor, knowing that the PSJV is unincorporated and cannot freely apply for funding.”

OFM News