asikhulume october 2011 - drdgold.com · dihitara mme ba bedisa metsi a mangata bakeng sa ho tola...

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Asikhulume WEAR YOUR SEATBELT BLYVOOR REACHES WAGE SETTLEMENT MEET THE VUSELELA TEAM PAGE 3 Niël Pretorius, DRDGOLD CEO, and Owen O’ Brien, general manager of Blyvoor, are sure the mine has a future. Workers can help save Blyvoor. First, let us learn what happened. Although Blyvoor’s production has been increasing every year, costs have also been rising – especially electricity. In June, Blyvoor did not have enough money to pay everyone – workers, suppliers, Eskom. In the past, DRDGOLD sometimes helped by lending money to Blyvoor. But in July the DRDGOLD board decided it could not afford to carry on loaning money to Blyvoor. The reasons for this decision are complicated, but your HR officer could explain it to you. Instead of closing the mine, the Blyvoor board decided on the business rescue plan that you have heard about. The rescue plan is a way of keeping the mine open and giving it time to sort out problems. Blyvoor does sometimes have good months when it makes a profit. But these profits are not enough to save the mine during bad months. One of the biggest problems is the cost of electricity. Every March since 2009, Eskom has increased prices by 28%. Then, in the months of June, July and August Eskom charges “winter tariffs”. The tariff is a levy that has to be paid by companies who use a lot of electricity for their business. It is like a fine for using large amounts of power. In hot months, there is usually no problem and there is enough power for everyone. But in winter, when people all around the country are using heaters and boiling more water for bathing and cooking more food, Eskom cannot provide enough power for everyone. This is why we sometimes have power cuts. Eskom needs the money from winter tariffs so it can build power stations and supply electricity to all South Africans all the time. Blyvoor also had other big problems this year. The company that supplies explosives had an explosion in its factory. For some time after that, it could not supply the correct explosive to Blyvoor and this caused problems with grades. Production before and after the Christmas and Easter holidays dropped due to high absenteeism and workers returning late from their holidays. Absenteeism is not just a problem this year. It is a problem every year at all operations and it is one that YOU can do something about. Winter tariffs happen at the same time as wage negotiations take place, and this puts Blyvoor under financial strain. Peter van den Steen is working on ideas to help Blyvoor. The company has also received help from AngloGold Ashanti and will be mining the Savuka block in the future. But that is not enough. Everyone at Blyvoor must work together as a team to save the mine. Go-slow mass action is not helpful and puts jobs at risk. WHAT CAN I DO TO HELP? Work safely Work efficiently Increase production Return from holidays on time Instruct unions to make reasonable demands MINE CAN BE SAVED! Sesotho leqepheng la 2 Let’s Talk ISSUE 19 | October 2011 a quarterly newspaper for the people of DRDGOLD You are part of a team This is TEAM DRDGOLD You may be a “supervisor” You may be a “worker” But you are connected Supervisors workers must respect each other. It works BOTH ways. Ungomnye wetim ebambiseneyo Le yi-TIM YASE-DRDGOLD Mhlawumbi uyisuphavayiza Mhlawumbi ungumsebenzi Kodwa uyinxenye yetim IiSuphavayiza nabasebenzi mabahloniphane. OMABINI la macandelo, elinye malihloniphe elinye. about it Yicinge le nto. PAGE 6 We want to hear from you! Give us feedback or send story ideas. Contact your HR Manager. DRDGOLD – THE PREFERRED EMPLOYER IN THE GOLD MINING INDUSTRY PAGE 5 Left to right: Charles Symons, chief operations officer at DRDGOLD and Niël Pretorius, CEO with Henry Gouws, general manager, Crown Gold Recoveries, before the industry’s safety march on 4 October (see page 2)

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Page 1: Asikhulume October 2011 - drdgold.com · dihitara mme ba bedisa metsi a mangata bakeng sa ho tola le ho pheha dijo tse ngata, Eskom ha e kgone ho fana ka matla a lekaneng bakeng sa

Asikhulume

WEAR YOUR SEATBELT

BLYVOOR REACHES WAGE SETTLEMENT

MEET THE VUSELELA

TEAM PAGE 3

Niël Pretorius, DRDGOLD CEO, and Owen O’ Brien, general

manager of Blyvoor, are sure the mine has a future. Workers can

help save Blyvoor.

First, let us learn what happened. Although Blyvoor’s production

has been increasing every year, costs have also been rising – especially

electricity. In June, Blyvoor did not have enough money to pay everyone

– workers, suppliers, Eskom. In the past, DRDGOLD sometimes helped

by lending money to Blyvoor. But in July the DRDGOLD board decided

it could not afford to carry on loaning money to Blyvoor. The reasons

for this decision are complicated, but your HR officer could explain it

to you. Instead of closing the mine, the Blyvoor board decided on the

business rescue plan that you have heard about. The rescue plan is a

way of keeping the mine open and giving it time to sort out problems.

Blyvoor does sometimes have good months when it makes a profit.

But these profits are not enough to save the mine during bad months.

One of the biggest problems is the cost of electricity. Every March

since 2009, Eskom has increased prices by 28%. Then, in the months of

June, July and August Eskom charges “winter tariffs”. The tariff is a levy

that has to be paid by companies who use a lot of electricity for their

business. It is like a fine for using large amounts of power.

In hot months, there is usually no problem and there is enough

power for everyone. But in winter, when people all around the country

are using heaters and boiling more water for bathing and cooking more

food, Eskom cannot provide enough power for everyone. This is why

we sometimes have power cuts. Eskom needs the money from winter

tariffs so it can build power stations and supply electricity to all South

Africans all the time.

Blyvoor also had other big problems this year.

• The company that supplies explosives had an explosion in its

factory. For some time after that, it could not supply the correct

explosive to Blyvoor and this caused problems with grades.

• Production before and after the Christmas and Easter holidays

dropped due to high absenteeism and workers returning late

from their holidays. Absenteeism is not just a problem this year.

It is a problem every year at all operations and it is one that YOU

can do something about.

• Winter tariffs happen at the same time as wage negotiations take

place, and this puts Blyvoor under financial strain.

Peter van den Steen is working on ideas to help Blyvoor. The

company has also received help from AngloGold Ashanti and will be

mining the Savuka block in the future. But that is not enough. Everyone

at Blyvoor must work together as a team to save the mine. Go-slow

mass action is not helpful and puts jobs at risk.

WHAT CAN I DO TO HELP?• Work safely • Work efficiently

• Increase production • Return from holidays on time

• Instruct unions to make reasonable demands

������������ ������ MINE CAN BE SAVED!

Sesotho leqepheng la 2

Let’s Talk

ISSUE 19 | October 2011a quarterly newspaper for the people of DRDGOLD

You are part of a team This is TEAM DRDGOLD You may be a “supervisor” You may be a “worker” But you are connected

Supervisors workers must respect each other. It works BOTH ways.

Ungomnye wetim ebambiseneyo

Le yi-TIM YASE-DRDGOLD Mhlawumbi uyisuphavayiza Mhlawumbi ungumsebenzi Kodwa uyinxenye yetim

IiSuphavayiza nabasebenzi mabahloniphane. OMABINI la macandelo, elinye malihloniphe elinye.

about it

Yicinge le nto.

PAGE 6

We want to hear from you!

Give us feedback or send story ideas. Contact your HR Manager.

D R D G O L D – T H E P R E F E R R E D E M P L O Y E R I N T H E G O L D M I N I N G I N D U S T R Y

PAGE 5

Left to right: Charles Symons, chief operations officer at DRDGOLD and Niël Pretorius, CEO with Henry Gouws, general manager, Crown Gold Recoveries, before the industry’s safety march on 4 October (see page 2)

Page 2: Asikhulume October 2011 - drdgold.com · dihitara mme ba bedisa metsi a mangata bakeng sa ho tola le ho pheha dijo tse ngata, Eskom ha e kgone ho fana ka matla a lekaneng bakeng sa

Asikhulume ISSUE 19 • October 20112

Morafo o ka pholoswa!

Niël Pretorius, DRDGOLD CEO le Owen O’ Brien, motsamaisi wa Blyvoor ba na le bonnete ba hore morafo o na le bokamoso. Ho na le ditsela tseo basebetsi

ba ka thusang ka tsona.La ho qala, ha re shebeng hore ho

etsahetseng. Le ha tlhahiso ya Blyvoor e ne e ntse e nyoloha selemo se seng le se seng, ditjeho le tsona di ne di ntse di nyoloha – haholoholo motlakase. Ka Phupjane, Blyvoor e ne e se na tjhelete e lekaneng ya ho lefa bohle – basebetsi, bafepedi, Eskom. Nakong e fetileng, ka dinako tse ding DRDGOLD e ile ya thusa ka ho kadima Blyvoor ditjhelete. Empa ka Phupu boto ya DRDGOLD e ile ya etsa qeto ya hore e ke ke ya kgona ho tswela pele ho kadima Blyvoor tjhelete. Mabaka a rarahane, empa mohlanka wa lona wa HR o tla o hlalosetsa. Ho ena le ho kwala morafo, boto ya Blyvoor e kgethile morero wa ho pholosa kgwebo. Ena ke yona tsela ya ho boloka morafo o butswe le ho fana ka nako ya ho rarolla mathata.

Blyvoor ka dinako tse ding e ba le dikgwedi tse ntle ha e etsa diprofiti. Empa diprofiti tsena ha di a lekana ho ka pholosa morafo ka dikgwedi tse mpe. Bo bong ba mathata a maholo haholo ke ditjeho tsa motlakase. Tlhakubele e mong le e mong haesale ka 2009, Eskom e ntse e nyolla ditheko ka 28%. E be, dikgweding tsa Phupjane, Phupu le Phato Eskom e lefisa “di-tariff tsa mariha”. Ena ke levy

e lokelwang ho leshwa ke dikhampani tse sebedisang motlakase o mongata. E tshwana le faene.

Dikgweding tse tjhesang, hangata ha ho na bothata mme ho na le matla a mangata bakeng sa e mong le e mong. Empa mariha, ha batho lefatsheng lohle ba sebedisa dihitara mme ba bedisa metsi a mangata bakeng sa ho tola le ho pheha dijo tse ngata, Eskom ha e kgone ho fana ka matla a lekaneng bakeng sa e mong le e mong. Ke ka hoo ka dinako tse ding re bang le ho kgaoha ha phepelo ya motlakase. Eskom e hloka tjhelete ya tariff ya mariha hore e tle e kgone ho haha diteishene tsa matla ho fepela motlakase ho batho bohle ba Afrika Borwa ka dinako tsohle.

Blyvoor hape e bile le mathata a mang a maholo selemong sena.

• Ho ile ha qhoma feketheri ya khampani e fepelang ka diqhomane. Ha ya ka ya kgona ho fepela diqhomane tse nepahetseng mme hoo ho bakile mathata ka dikereiti.

• Tlhahiso pele le ka mora Keresemese/Paseka e ile ya theoha ka baka la basebetsi ba bangata ba neng ba le

siyo mosebetsing mme ba bang ba kgutla matsatsing a phomolo ka mora nako. Ho ba siyo mosebetsing ke bothata selemo se seng le se seng dioporeisheneng tsa rona mme ke e nngwe ya dintho tseo WENA o ka etsang ho hong ka yona.

• Di-tariff tsa mariha di etsahala ka nako e le nngwe le ditherisano tsa meputso, mme hona ho beha Blyvoor tlasa bothata ba tsa ditjhelete.

Botsamaisi ba Blyvoor bo sebetsa le ditsebi ho fumana tsela ya ho boloka morafo o butswe. Khampani hape e fumane thuso ho tswa ho AngloGold Ashanti. E tla be e rafa bolokong ba Savuka nakong e tlang. Empa hoo ha ho a lekana. Bohle Blyvoor ba lokela ho sebetsa mmoho jwalo ka sehlopha ho pholosa morafo.

Na nka etsa eng ho thusa?

• Sebetsa ka polokeho

• Sebetsa ka tsela e nang le diphetho tse ntle

• Eketsa tlhahiso

• Kgutla matsatsing a phomolo ka nako

• Bolella yunione hore e etse ditseko tse utlwahalang

NTWA E KGOLO KA HO FETISISA YA BLYVOOR

Earlier this month I did something I have never done before. I joined thousands of mine employees across all levels of the industry on a march to the Chamber of Mines. This march on 4 October was to remember all those who have lost their lives on the job. There were several speakers, each with his own view, but all shared one very important opinion – that one death at work is one death too many.

For one day all the differences that might exist between labour and management were forgotten by our joint commitment to safety. Management and other corporate office employees joined me to walk shoulder to shoulder with trade union members. For most of us from corporate, this public march was a first time experience.

The day was a success and I think afterwards both management and labour had the feeling that this could be the start of something big. This could be the event that encourages cooperation at all levels in the industry to achieve zero harm. The day left me wanting more times like this, where we all stand side by side. I wondered if it would be possible to find other areas that can bring us closer together. Working together is so much more helpful than taking opposite sides as we often allow ourselves to do. Sometimes, when we have different opinions, we let these become bigger than the other things that we might agree on. We fail to find common ground. We allow our disagreements to get in the way of cooperation. We force ourselves onto opposite sides when there is no real reason for this to happen. We end up being so angry with one another that the business suffers, and if the business is threatened then we all have to worry about our future.

Not long ago we had a situation at Blyvoor where we were on opposite sides. The mine had three months of losses when the company spent more than it received. We wanted to save the mine and all the jobs. So we used the protection offered by the Companies Act. The Act gives some protection to a company that is in trouble. Blyvoor was able to contact its creditors to arrange what it could afford to pay. We have explained to you before that some businesses, like Eskom, charge very large amounts of money for electricity. Sometimes our suppliers also put up their prices when they see that the gold price has gone up. They don’t understand that the cost of running a mine is very high, even with a good gold price.

Our action was quite successful, and we managed to avoid paying almost R30 million related to pricing policies. Unfortunately many of our employees believed that we made up the story about the trouble so that when we began wage negotiations we would have a reason not to meet the wage demands. They believed that management did not care and so they organised an unprotected go-slow mass action.

This mass action made some managers think that labour does not care about Blyvoor. At the very time when the mine was in a weak position and we were asking for your help to keep the mine going by working efficiently and safely, our employees were on a go-slow. This meant production suffered. Blyvoor’s position became even weaker than before. The Business Rescue Practitioner had no choice but to start talking about job cutbacks. The truth is, the longer we let our differences continue the less likely we are to agree on a business plan that can help us all. It is important to know that a business plan is really nothing more than a piece of paper. On the paper is a list of things we need to do – to mine at a certain rate, at a certain cost, to achieve a specific outcome. But pieces of paper have never saved jobs or businesses. What can save a business are the people. People who have a shared commitment to something can make a difference. The shared vision must be powerful and it needs to be based on trust. All parties must put aside their suspicions of one another and their differences. A shared vision could save Blyvoor. A shared vision means everyone working together to strengthen the business so it can continue to provide jobs.

So this is my challenge to you. Why don’t we take what the march showed us can be done, and apply it to all our activities? Let us start by agreeing that every employee deserves to be treated with dignity. Let us be serious about the future and let us be sensible. Let us also be sensitive to the fact that our jobs offer a chance to achieve our hopes and dreams. We all know that a person with a job is in a better position to provide for his or her family. And that is what most of us are doing. Providing for families and giving our children the opportunities we might not have had ourselves.

So I ask you to work not only for a salary. Work also because you believe in the business. Learn new skills and pass on your knowledge to others. We should never think that we know everything. We can continue learning until the day we die.

Most importantly start to think about your own interests in the business. This year’s wage settlement includes an arrangement to share in profits. This is a first step to phasing out production bonuses and replacing them with profit incentives. Although production bonuses may put money in your pocket at month end, they can affect safety. And an unsafe business can never be profitable over a long period. Sharing in the profit or loss makes every employee like our shareholders. We believe the opportunity to share makes good sense and will result in better safety and operational practices. It will be good for you and good for DRDGOLD. Let’s move forward to find more common ground, and roll out our joint commitment to safety in all aspects of the business!

Niël’sNote

Willie Bernhardt is a happy man.

After four years studying a number

of different subjects he has

been awarded his Government

Certificate of Competency. As a

result of his achievement he was

appointed engineer at the Knights

Plant earlier this year. Willie said

he was grateful to DRDGOLD for

the support he received with his

studies but is glad they are now

behind him. “I appreciate having

the opportunity to progress my

career,” he said. “I must admit

it was stressful having to study

again at my age and I found the

work was intensive. However it

was worth it in the end, and I was

pleased with my appointment to

the position of engineer.”

DRDGOLD congratulates Willie

on obtaining the Government

Certificate that paved the way for

his promotion to engineer.

Willie Bernhardt

Page 3: Asikhulume October 2011 - drdgold.com · dihitara mme ba bedisa metsi a mangata bakeng sa ho tola le ho pheha dijo tse ngata, Eskom ha e kgone ho fana ka matla a lekaneng bakeng sa

AsikhulumeISSUE 19 • October 2011 3

ARE YOU LIVING THE VUSELELA EXPERIENCE?VUSELELA

John GoddardHenry Gouws

Tessie Wilkins

Sineyiki Makofane

Koos van Schalkwyk

Johnson Mokoena

Josiah

Tshisevhe

Barry De Blocq Daniel Mafore

Zandile Zwane

John Addinall

����������������� �

Facilitators:

• Buti Biloane

• Adelaide Ngubeni

• Piet Pistorius

Ferdie Prinsloo

Jeevan UrenEmmarentia Dire

Patrick Rikhotso

Page 4: Asikhulume October 2011 - drdgold.com · dihitara mme ba bedisa metsi a mangata bakeng sa ho tola le ho pheha dijo tse ngata, Eskom ha e kgone ho fana ka matla a lekaneng bakeng sa

Asikhulume ISSUE 19 • October 20114

EBDA promotes maths and scienceStudents and teachers benefit

Maths and science are not always popular

subjects. However, they are very important

study areas. Like any country, South Africa

must make sure it has enough people who are

good at maths and science. This means the

young people coming out of our schools must

be well-taught so they can understand the

subjects and do well. If they get good results

then they understand the subject. As a result

they are more likely to study the subjects at

university. We need people who are qualified

in these areas so we can continue to build our

country and make it a good place to live. The

doctors who look after us, the scientists who

develop new medicines to make us better

when we are sick, the engineers who build

our roads and bridges and the people who

invent things (cell phones, computers and

TV) have all studied maths and science.

In South Africa there is a problem and there are not enough good maths and science teachers for all the schools. This means that our students are not getting taught and if this continues there will be an even bigger problem in the future. The management of EBDA, the training centre that was set up by DRDGOLD, has realised that it is important to promote excellence in maths and science. A Maths and Science Centre of Excellence has been created and a specialist in these subjects, Eric Mnisi, has been employed.

At present, three schools in the Ekurhuleni area have been selected by EBDA and the Department of Education. Pupils in grades 10 – 12 attend special classes during and after school hours. Here they are given the help they need to improve their understanding and their marks. So far, the progress has been very good.

Maths and science teachers are also getting help and have been attending workshops twice a month. Here they receive advice on the best ways of teaching the subject to the school children.

EBDA has also started N1 and N2 classes in maths, science and engineering science. These subjects are needed at the N2 level so that learners can write trade tests.

Piet Pistorius, manager at EBDA says results from the Centre have been encouraging. “We have measured performance before and after training,” he says. “We are very pleased to note improvements of up to 60%. This is what we were hoping for and we are sure that performance will continue to improve. We need to make maths and science less scary for learners. The support we are providing to learners and teachers is having very positive results.”

I-maths nesayense akuzona izifundo

ezidume kakhulu. Kodwa zifundo

ezibaluleke kakhulu. Njengamanye

amazwe, iNingizimu Afrika kumele

iqinisekise ukuthi inabantu abenele

abazi kahle i-maths nesayense. Lokhu

kusho ukuthi abantu abasha abaqeda

izikole kumele bafundiswe kahle, ukuze

baqondisise izifundo khona bezoqhubeka

kahle kuzo. Uma benemiphumela emihle,

kusho ukuthi bayaziqondisisa lezi zifundo.

Ngenxa yalokho bazokwazi ukuzifunda

lezi zifundo eyunivesithi. Sidinga abantu

abanamakhwalifikheshini kule mikhakha

ukuze sikwazi ukuqhubeka sakhe izwe

lethu kanye nokwenza ukuthi libe

yindawo enhle yokuhlala kuyo. Odokotela

abasinakekelayo, ososayense abenza

imithi yokuselapha, osonjiniyela abakha

imigwaqo namabhuloho, nabaqambi

bezinto ezintsha ezifana namaselula,

amakhompyutha, i-TV, bonke laba bantu

benze izifundo ze-maths nesayense.ENingizimu Afrika kukhona inkinga

ngoba abenele othisha abanekhono

lokufundisa i-maths nesayense kuzo zonke

izikole. Lokhu kusho ukuthi abafundi

bethu abafundiswa kahle, kanti uma

lokhu kuqhubeka, kuzoba yingwadla

yenkinga ngekusasa. Imenejimente yakwa-

EBDA, isikhungo soqeqesho esaqalwa

ngabe-DRDGOLD, babone kubalulekile

ukuqhubela phambili ukufundiswa kwe-

maths nesayenze ngezinga eliphezulu.

Kwenziwe i-Maths and Science Centre of

Excellence (isikhungo sezinga eliphezulu

se-maths nesayense), kanti kwaqashwa

nochwepheshe kulezi zifundo, u-Eric Mnisi.

Okwamanje kukhethwe izikole ezintathu

Ekurhuleni, ezikhethwe ngabe-EBDA

kanye noMnyango wezeMfundo. Abafundi

abakuma-grade 10 ukuya ku 12 bangena la

maklasi esipesheli lapho sekuphume isikole.

Lapha bathola usizo abaludingayo ukuze

bathuthukise ukuqondisisa kwabo kanye

nokuthuthukisa amamaki abo. Kukhona

inqubekela-phambili enhle kabi.

Othisha be-maths nesayense nabo

bathola usizo kanti futhi nabo bahambela

imihlangano yama-workshop kabili

ngenyanga. Lapha bathola izeluleko

ngezindlela ezingcono zokufundisa isifundo

ezinganeni zesikole.

Abe-EBDA baqale namaklasi ka N1 kanye

no-N2 e-maths, isayense kanye nesayense

yobunjiniyela. Lezi zifundo ziyadingeka

kwilevele ye-N2 ukuze abafundi babhale

amathesti e-trade.

UPiet Pistorius, umininjela we-EBDA

uthi imiphumela evele Kwisikhungo (Centre)

mihle iyakhuthaza. “Sihlole iqophelo

lokusebenza ngaphambi nangemuva

koqeqesho,” kusho yena. “Sijabula kabi

ukubona intuthuko efinyelela ku 60%.

Yilokho esithembele kukho, kanti futhi

siqinisekile ukuthi ukusebenza kwabafundi

kuzoqhubeka nokuthuthuka. Kumele

senze ukuthi abafundi bangayesabi i-maths

nesayense. Usekelo esilunikeza abafundi

nothisha lunemiphumela emihle kabi.”

I-EBDA IQHUBELA PHAMBILI IZIFUNDO SE-MATHS NESAYENSEAbafundi nothisha bayazuza

Eric Mnisi gives maths support to matric pupils at EBDA

Page 5: Asikhulume October 2011 - drdgold.com · dihitara mme ba bedisa metsi a mangata bakeng sa ho tola le ho pheha dijo tse ngata, Eskom ha e kgone ho fana ka matla a lekaneng bakeng sa

AsikhulumeISSUE 19 • October 2011 5

SEAT BELTS SAVE LIVES

DRDGOLD reported a 76% increase in

operating profit to R477.0 million for the year

ended 30 June 2011 and a 50% rise in dividend

at 7.5 South African cents per share. This is

the fourth year in a row that the company has

declared a dividend. Ergo’s operating profit

rose significantly by 250% to R158.5 million

for the year, reflecting higher gold production,

lower costs and a higher average Rand gold

price received.Gold production for the year rose 10% to

265 179oz, demonstrating recovery from the seismicity that affected production at Blyvoor during FY2010 – and also the successful bedding down of the Ergo surface retreatment circuit. At Ergo, production for the year was 37% higher at 48 352oz due to an 11% rise in throughput to 13 206 000t and a 22% rise in average grade to 0.11g/t, both resulting from continued build-up of slimes recovery from the Elsburg Tailings Complex. “Sixty-six per cent of DRDGOLD’s total gold production now comes from its mechanised, 24/7 Ergo, Crown and Blyvoor surface retreatment circuits,” says DRDGOLD CEO Niël Pretorius. “Research into improved recoveries from the Ergo circuit is encouraging and in future we hope to ‘match science with appropriate technology’,” he noted.

Group cash operating unit costs for the year were 8% higher at R251 296/kg (FY2010: R233 122/kg), due mainly to power utility

Eskom’s substantial price increases and higher

winter tariffs. Ergo’s total cash operating unit

costs in FY2011 dropped by 11% to R205 436/

kg due mainly to the marked increase in gold

production.

Although Blyvoor was fully impaired in

the year under review, headline earnings per

share (HEPS) for the year were unaffected

rising by 115% to 28 South African cents.

A 15% increase in the average Rand gold

price received during FY 2011 to R308 221/kg

– together with higher gold production –

contributed to a 29% rise in revenue to

R2 565.3 million, and to increased operating

profit.

During the year capital totaling R315.8 million

was re-invested in operations without

diluting shareholder equity. At Ergo, lower

capital expenditure of R57.1 million reflected

completion of pumping and pipeline infra-

structure to bring the Elsburg Tailings complex

fully on line. Capex was directed mainly

towards refurbishment of the second carbon in

leach (CIL) circuit at Ergo’s Brakpan plant and

increasing the capacity of its Brakpan tailings

deposition site.

Pretorius concluded: “The true measure of

the health of a business is the net cash generated

from the operations. I’m extremely pleased to

note that in FY 2011 this amount was up 504%

from the previous year at R323.9 million.”

DRDGOLD’s annual performance

������������ ��� ��“WEAR YOUR SEAT BELT!” This is the

message from Willie Nelson, manager

Health and Safety at Blyvoor. After the

bus accident involving Blyvoor workers in

March, the DMR, the labour unions and

Blyvoor management agreed that workers

had to be kept safe while travelling to

and from work. As a result, all 11 Vaal

Maseru buses that are contracted to

Blyvoor, as well as the Blyvoor bus and the

transporter, were immediately fitted with

seat belts.

“But we have a big problem,” explains

Willie. “Although our intention was to

make journeys safer for our workers, many

of them are not cooperating.” This means

that employees are travelling on the buses

and ignoring the belts that have been fitted

for their safety. “People always think bad

things are going to happen to others,” says

Willie. “But none of us know what will

happen tomorrow. If you knew you were

going to be in an accident and that a seat

belt would save your life, would you wear

it?” he asks. “Of course you would. We all

want to stay alive. So – as you don’t know if

or when you are going to be in an accident

– why not improve your safety and wear

one all the time?”

Seat belt checks do take place on the

buses, but are difficult to conduct. “We are

not stupid. We know that some passengers

only fasten the belt as the inspector or

safety officer gets on the bus,” explains

Willie. “Once the inspector is off the bus,

some passengers unfasten the belt. This

is very foolish. The seat belts are there for

passenger protection.”

“Wearing seat belts must become a way

of life. It’s one of the good habits we should

have,” says Niël Pretorius, DRDGOLD CEO.

“Don’t make the mistake of thinking that

an accident can’t happen to you. Whether

you’re in a car, a bus or a taxi, my advice is

– belt up. It won’t help you or your family

if you are killed or end up in a wheelchair.

Safety belts are there for a reason – they are

for your own good.”

ERGOSHINES!

����������� �������� ���Bopha ibhanti ukuze uhlale ukhuselekile

“Bopha ibhanti lesitulo sakho”. Lo ngumya-

lezo ovela ku Willie Nelson, umphathi

wezeMpilo noKhuseleko e-Blyvoor. Emva

kwengozi yebhasi eyayikhwelise abasebenzi

base-Blyvoor ngoMatshi, i-DMR, iiyuniyoni

zabasebenzi, kunye nabaphathi base-

Blyvoor bavumelana ngokuba abasebenzi

mabagcinwe bekhuselekile xa besendleleni

eya, nebuya emsebenzini. Ngenxa yoko

ke, zonke iibhasi ezili 11 zase-Vaal Maseru

ezinekhontrakthi ne-Blyvoor, ndawonye

nebhasi yase-Blyvoor kunye nomthuthi,

zafakelwa amabhanti ezitulo kwangoko.

“Kodwa ke sinengxaki enkulu,” uchaza

atsho u Nelson. “Uninzi lwabasebenzi bethu

abanantsebenziswano.” Oku kuthetha ukuba

abasebenzi abazibophi iibhanti xa bekhwele

ibhasi nangona nje zifakelwe ukubakhusela

. “Abantu basoloko becinga ukuba izinto

eizmbi ziyakwenzeka kuphela kwabanye,”

utsho u Nelson. “Kodwa akukho namnye

okwaziyo okuyakwenzeka kuye ngomso.

Ukuba ubusazi ukuba uzakufumana ingozi

kwaye ibhanti liyakusindisa ubomi bakho,

ungalibopha?” ubuza atsho. “Kakade

ungalibopha. Sonke sifuna ukuphila. Ngoko

ke – njengoko ungazi ukuba ungafumana

okanye uzakuyifumana nini ingozi – kutheni

ungaqinisekisi ukhuseleko lwakho, ubophe

ibhanti lonke ixesha?”

Ukubotshwa kwamabhanti kuyahlolwa

ezibhasini, kodwa kunzima ukuqinisekisa

ukuba ayabotshwa. “Asizizo izidenge. Siyazi

ukuba abanye abakhweli babopha ibhanti

kuphela xa bebona umhloli okanye igosa

lokhuseleko likhwela ibhasi,” uchaza atsho

u Nelson. “Akugxidika umhloli, abanye

abakhweli bayazikhulula iibhanti. Bubudenge

obu. Ezi bhanti zifakelwe uku-khusela abakhweli.”

“Ukubopha ibhanti makubeyindlela

ophila ngayo. Yenye yezinto ezintle ongazi-

qhelisa yona,”utsho u Niël Pretorius, i-CEO

yase-DRDGOLD. “Ungenzi impazamo

yokucinga ukuba awunakuhlelwa yingozi.

Nokuba usemotweni, ebhasini okanye

eteksini, ingcebiso yam yile – bopha ibhanti.

Ayikukunceda wena okanye intsapho yakho

ukuba ubhubhe okanye uphelele kwi-

wheelchair. Amabhanti okhuseleko afakelwe

isizathu – ukunceda wena.”

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Asikhulume ISSUE 19 • October 20116

21 August 2011

23 August 2011

25 August 2011

23 August 2011 25 August 2011

at Blyvoor mine

at 4 Shaft

at the Blyvoor plant

1 000 000FATAL FREESHIFTS

2 000 000FATAL FREESHIFTS

1 000 000FATAL FREESHIFTS

To read the�DRDGOLDAnnual Integrated Reportgo to www.drdgold.com

Niël Pretorius (right) with the Africa Investor Delegation at the New York Stock Exchange for the closing bell ceremony on Monday 26 September

�����������������������Well done to Blyvoor. On Thursday 13 October, management,

NUM and UASA signed off on a three-year wage agreement

backdated to July 2011. This wage agreement is special because

• it is the first three-year wage agreement for the mining industry

• for the first time, workers at Blyvoor can share in the profits of

the mine

• workers, unions and the company all agree that the most

important thing is to save the mine and jobs. Employees

now understand that the Business Rescue Plan is important.

If the plan is going to work, every person must work hard

for the next three years. It is not possible for workers to have

all demands met now. Sometimes it is necessary to make

sacrifices to ensure the future of the mine.

Workers in job categories 4 to 5 get a 7% basic wage increase for

the next three years. Workers in job categories 6 to 16 get a 6% basic

wage increase for the next three years. But, in year three, if the cost of

living (measured by the Consumer Price Index or CPI) is higher than

6% or 7%, the basic wage increase will change to the higher figure.

The living out allowance will be increased to R1 150 a month for

year one, R1 200 a month for year two, R1 250 a month for year three.

Your HR officer can give you more information.

Work smart to save Blyvoor and your jobs!

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AsikhulumeISSUE 19 • October 2011 7

Employees who have serious health conditions are asked to discuss them with the occupational health officer at the medical station. The information will be kept confidential. Serious health conditions are sometimes called chronic. You have a chronic condition if you take medicine every day or have to carry it with you. Some examples of chronic illness are TB, diabetes, high blood pressure, asthma, epilepsy, Aids, cancer and even arthritis.

It is not a good idea to hide the fact that you have a serious illness. It is much better

for everyone if you tell the health officer. If you provide this information you will not

lose your job. Instead the health officer will give you advice and make suggestions if your

illness is going to affect the way you do your work.

It’s also sensible to tell your friends and colleagues if you have a serious illness. Then,

if you fall ill while working, they can tell the paramedics who will be able to treat you

immediately. Time wasted trying to find out what is wrong with someone who has

collapsed can result in more serious damage and even death.

Health and safety are linked. If you are not in good health, you will not be able to

do your job properly. This could be dangerous not only for you but also for the other

workers. “It is in the employee’s best interests to tell us if there is something wrong,” says

John Scudder, chief safety officer at Crown. “That way we can provide support so they

can learn to live with the condition.”

If the illness could affect your safety in the workplace, the health officer will contact

your HR officer. He will help you to work out what is best for you and best for those

working with you and the company. Says Jeevan Uren, HR manager at Crown: “We have

a duty to look after our workers and our workforce. We cannot do this properly if

employees hold back important information.”

�������������������������

��������������� ��

Basebetsi ba nang le maemo a bophelo a mabe haholo ba kotjwa hore ba buisane ka ona le mohlanka wa tsa bophelo mosebetsing sebakeng sa bongaka. Tlhahisoleseding eo e tla bolokwa e le lekunutu. Maemo a mabe haholo a bophelo ka dinako tse ding a bitswa mafu a sa feleng. O ba le lwefu le sa feleng ha o nka moriana ka mehla kapa ha o lokela ho dula o o tshwere ho wena. Mehlala e meng ya mafu a sa feleng ke TB, lefu la tswekere, kgatello e hodimo ya madi, asema, sethwathwa, Aids, kankere le arthritis

Ha se mohopolo o motle ho pata dintlha tsa nnete tsa

hore o na le lefu le lebe haholo. Ho molemo haholo hore e

mong le e mong a bolelle mohlanka wa tsa bophelo. Ha o

fana ka lesedi lena o ke ke wa lahlehelwa ke mosebetsi wa

hao. Empa, mohlanka wa tsa bophelo mosebetsing o tla ho

neka dikeletso mme a fane le ka ditshisinyo haebe lefu la

hao le tlilo ama ka moo o etsang mosebetsi wa hao ka teng.

Ke ntho e utlwahalang hape le ho bolella metswalle

ya hao le basebetsi mmoho ha o na le lefu le lebe haholo.

Moo, ha o ka kula ha o ntse o sebetsa, bona ba ka bolella

di-paramedic tse tla kgona ho o alafa ka potlako Ho senya

nako ho ntse ho lekwa ho fumana bothata ka motho ya

weleng ho ka baka tshenyo e mpe haholo ekasitana le hona

ho hlokahala.

Bophelo le polokeho di hokahane. Ha o se na bophelo

bo botle, o ke ke wa kgona ho etsa mosebetsi wa hao ka

nepo. Hona ho ka ba kotsi e seng feela ho wena empa hape

le ho basebetsi ba bang. “Ho tswa ho mosebetsi ka mong

hore a re bolelle haebe ho na le ntho e sa lokang,” ho rialo

John Scudder, mohlanka e moholo wa polokeho mane

Crown. “Ka tsela eo re ka fana ka tshehetso hore motho a

tle a kgone ho ithuta ho phela le ho sebetsa a na le boemo

boo.”

Ha lefu le ka ama polokeho ya hao mosebetsing,

mohlanka wa tsa bophelo mosebetsing o tla iteanya le

mohlanka wa lona wa HR (Ditaba tsa Basebetsi). Hona

ha ho bolele hore o tla lahlehelwa ke mosebetsi wa hao.

Mohlanka wa HR o tla o thusa hore o shebe hore ke eng

e molemo bakeng sa hao hape e leng molemo le ho bao

o sebetsang le bona le khampani. Ho rialo Jeevan Uren,

motsamaisi wa HR mane Crown: “Re na le boikarabelo

ba ho hlokomela basebetsi ba rona le moifo ohle wa rona.

Re ke ke ra kgona ho etsa hona ka nepo ha basebetsi ba sa

hlahise lesedi la bohlokwa.”

Wena le bophelo ba haoHo phela o na le lefu le sa feleng

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Asikhulume ISSUE 19 • October 20118 Asikhulume ISSUE 19 • October 20118

DRDGOLD Ltd was proud to provide financial assistance to help marimba bands from underprivileged schools to attend the National Marimba Festival in July. The event was held at St Dominic’s Convent in Boksburg, where ERPM has been operating for more than 100 years. Barry de Blocq, general manager, corporate services said: “DRDGOLD saw this as a way of giving something back to the community. We were pleased to do this through the magic of music, and to play a role in developing young musicians across the country.”

Other donors had helped the bands to get established, but it was the DRDGOLD sponsorship that allowed 65 children, representing nine marimba bands, from as far away as Cape Town, Polokwane, East London and Bloemfontein to attend the festival. This event fits well with the DRDGOLD Corporate Social Investment policy as it gives the company a chance to make a cultural contribution to the community.

The organiser, Hilda Gordon, said: “DRDGOLD did something important by making it possible for these children to attend the festival. They will have lifelong memories of the trip, and participating will have added a great deal to the quality of their music. It is only by experiencing how other bands play, that they can improve their own standards.”

���������� �������� �����

wwithh mmmarrimmbbaass

The Ergo pipeline project is drawing to a close. Some 29 000m of the 50 000m pipeline have been commissioned while 14 000m of steel and lining for the third stage (Elsburg to Benoni) is complete. This leaves only closures and finishing touches before the Elsburg inline booster pump station is started up.

Work on the final 6 400m stage between Crown and City Deep has commenced.

In recent weeks the team has been busy commissioning operations. Danny Hitge and the Crown team have commissioned Crown’s new reclamation site and de-commissioned Top Star. Koos van Schalkwyk and the City Deep team have commissioned City Deep’s new re-mining site and transfer pump station. Before City Deep could ramp up production the Brakpan tailings dam pump station had to be commissioned. This happened in mid-September 2011 and an exhausted Mike Fenenga (head: instrumentation) made sure all instrumentation was operating as it should. A week later the City Deep transfer station, including the 23 000m pipeline to Elsburg, was commissioned. “With everything up and running DRDGOLD can now truly boast a 70 000m continuous production system,” says Dean Lindecke, engineering manager.

The mixers for the ERGO plant’s second leach stream finally arrived and have been installed hot off the ‘lorry’ by Hennie Botha’s project crew.

DRDGOLD’s surface operations have grown significantly over the last five years and now comprise the ERGO plant, Elsburg complex, Brakpan tailings dam and the Crown/City pipeline link to ERGO. Mike Fenenga has created and implemented SCADA software that enables supervisors to operate and monitor plant equipment from dedicated control rooms across the entire re-mining area. Mike’s programs also protect the equipment and help monitor trends.

Hennie Botha and his team at Brakpan tailings dam pump station during the installation of equipment