I've spoken to Phil Dexter DRD Gold Investor and Media Relations. He is of the opinion DRD Gold have given permission to TCTA to build the Sludge Treatment Plant on their land but are not doing the construction : Hi xxxx
As far as I'm aware the pumping and treatment facilities are being built by TCTA and not by DRDGold. DRDGold, under its subsidiary company ERGO, has granted TCTA access to its land and ERPM shaft (the South West Vertical Shaft of East Rand Proprietary Mines Limited)in order to construct and operate the facilities.
Just making sure your up-to-date here, perhaps you are. The pumps have been donated but are still in Germany(Ritz) and will not be shipped over until TCTA requests which will be just before they can install them in the SW Vertical shaft sometime around June-August 2013.
I'm trying to get the thumbs up on whether the Sludge Treatment Plant construction has started yet on DRD Gold's land (should have started Jan 8th).
The Chinese have cash and an eye for a bargain. Investor cash going on pumps donated to SAG(TCTA) doesn't help,BUT will keep water level down till that Sludge treatment plant gets online..SOoo..mutually beneficial but politically advantageous.. Should certainly help in any ongoing legal entanglements/union problems/licensing applications.etc.;)
I don't know if this figure is still current but I read somewhere that South Africa's average cost per ounce of gold produced was $968. Now, that is probably what the big mining companies are getting and they have the advantage of having a big, efficient operation that can benefit from the economy of scale that brings. Plus, I don't know where the other SA mining companies sit with regards to mechanised versus CRND's conventional hand held stoping methodology but I imagine it is making us more expensive right now.
I would already be happy if costs were back down to around $1500/oz, but obviously if it is less that would be amazing. Just don't think we should have unrealistic expectations around this -- we are still in the early stages right now so cost is understandably higher.
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