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http://oilprice.com/Metals/Commodities/Has-South-Africa-Just-Pushed-The-Restart-Button-For-Mining.html One of the most striking stories in mining the last decade has been the decline of South Africa. With that nation going from world’s top gold producer in 2006 all the way down to 7th place globally in 2016. Part of that decline is due to geology — with deposits here being deep and expensive. But there’s another big reason for South Africa’s mining issues: labor problems that have plagued the gold and platinum sectors the last several years. But a landmark court ruling this week may change that. With South Africa’s highest court severely curtailing the ability of mine workers unions to stage crippling strikes. South Africa’s Constitutional Court delivered a verdict Tuesday in a case brought by the Associated Mineworkers and Construction Union (AMCU). Where the union was appealing a 2014 Labor Court ruling that forced it to accept collective bargaining as part of wage negotiations. The original case here stems to 2013. When AMCU’s fellow unions National Union of Mineworkers, UASA and Solidarity all accepted a pay deal with major gold mining companies — one which AMCU leaders disagreed with. AMCU refused to accept the pay agreement. And were promptly taken to court by mining firms — who argued that under an “inclusive process” of bargaining, AMCU should be forced to accept the pay deal when a majority of other unions had signed off. The Labor Court agreed, ruling that AMCU should be bound by the deal. Prompting AMCU reps to appeal to the Constitutional Court — leading up to this week’s decision, where Constitutional Court judges upheld the original decision in favor of mining companies. The result is that AMCU (and other unions) will no longer be able to single handedly go on “protected” strikes — where workers cannot be fired during labor action. Going forward, any such activist strikes would risk workers losing their jobs. That’s almost certain to reduce the incidence of strikes across South Africa. Which would be welcome news for mining companies, bringing much more certainty to operations here. The case isn’t completely finished, with AMCU lawyers saying they are examining a potential appeal of the Constitutional Court decision. Watch for next moves from the union, and for a potential improvement in the operational climate in South Africa if this week’s ruling does stand. Here’s to getting to work.
Einvestein, thanks mate. Whogarth, the drill rig can only be brought to surface once eroded road surfaces of the twin declines has been repaired. It's really getting a bit stale at the moment but we'll just have to hang in & be patient. ATB
Thanks Valency I thought the claim prior to the flood would be for the fire damage to the truck. Surely the drill could be retrieved now as it is covered by insurance for I understand it will take 6 weeks to rebuild.
http://www.sharenet.co.za/v3/sens_display.php?tdate=20170223114500&seq=47 standstill agreement to be extended until conclusion of business rescue. It could be that the 28th is extended again by court.... But bad for DCP in terms of remedial work
Whogarth, 14 Feb update confirmed insurance claim concluded for prior incident - "LDM has however received net insurance proceeds of c.ZAR1.36 million from the successful conclusion of an insurance claim in respect of an incident prior to the mine flood". - Likely referring to the truck fire (due overheating turbo charger) & section 54 stoppage. I think the current flood claim may only be finalised once the drill rig (still underground) can be brought to surface & damage assessed? Tozerk, not at all. Deloitte requested Expressions of Interest from parties interested to participate in post-commencement Finance as advertised.
Morning Valency All this about expressions of interest in future financing the mine. You don't think there's a possibility that they're just setting up future potential buyers for when IDC allow it to go bust do you?
DCP did have insurance for flooding to what extent this covered at the end of the day should bring in a payment.
Could well be Einvestein as there was no further mention of "loan restructuring" discussions so possibly sorted but I'm taking a cautious approach on this though. ATB.
excellent find Val, looks like the loan restructuring is complete and now they are concentrating on the fundraise phase. Looks quite promising. Could be an rns tomorrow regarding the bond payment by 23rd. Still a week left which is adequate to get these final agreements in.
Similar update as issued for DCP on 14 Feb 2017 was issued yesterday on Soapstone Convertible Bond (DMCCB) on JSE. http://www.sharenet.co.za/v3/sens_display.php?tdate=20170221103000&seq=21 Though similar, there's a very slight change in word structure referring to the IDC - "Discussions also continue between DiamondCorp and the Industrial Development Corporation of South Africa ("IDC") in relation to the provision of Post-Commencement Funding ("PCF") for the Lace Diamond Mines (Pty) Limited subsidiary, currently in business rescue. No assurances can be made that such IDC Approval will be forthcoming, either in time for PCF to be sought to be raised promptly, or at all." - No mention of terms relating to the secured loan continuing in discussion? Perhaps that hurdle has been ticked? If so then PCF remains as well as of course AMCU terms. Compare the relevant IDC paragraphs in the latest (21 Feb) Soapstone update above to that of DMC update 14 Feb - http://www.lse.co.uk/share-regulatory-news.asp?shareprice=DCP&ArticleCode=3eoewzz6&ArticleHeadline=Further_Update_re_Placing_and_Corporate_Update Thoughts welcome?
Yes...see Mon 11:48 post. Been busy all day today. Planning to call Deloitte tomorrow to speak with Edward Dyer. Let's see if I can find some clues what's going on in the background.
Hi Mr+ have you emailed PL yet? Cheers
Thanks folks. We are all in this together. I am a fighter and will not rest until we can get a satisfactory result here. Valency, Have bookmarked both links. Might actually call Deloitte tomorrow morning and try to speak with Edward Dyer directly if he is available. Will get back later. ATB
Great effort Mr P on behalf of all of us, let's hope it's not in vain and the deal can be done to keep this worthwhile investment alive.
Hope you're right Mr+. Its all getting really tight timescale wise though isn't it. Come on PL earn your brass and come up with the deal. Thanks for your efforts. Cheers.
MrP. thanks really appreciate your effort!! I located a link to contact Deloitte in S.A. re. Corporate Finance via "contact us" link on the page - https://www2.deloitte.com/za/en/pages/finance/solutions/corporate-finance.html Perhaps a good idea to submit a direct enquiry for attention Edward Dyer through the link requesting info on the same as backup of your email - https://www2.deloitte.com/za/en/footerlinks/contact-us.html?icid=nextsteps_contact-us
alligin. Thanks. Yes noted. Due to the essence of time I sent the email to PL, and asked him to forward as it is to 'Deloitte' if he can. I am sure he must be busy with ongoing negotiations with IDC and any adjustments needed to the AMCU agreement in principle. Let's give it a day or so. Might get an RNS this week.....who knows. Have a good feeling though that DCP will get through the current storm to safe harbour soon. Best Wishes all.
Thanks for all your efforts- I really appreciate what you are doing and have stated on this board before that pi's have more prospective power than we will ever be given credit for. Time to break the mould, perhaps. GLA
Email sent : PrimaryBid.com was put as Top option amongst others. Lets see. Best Wishes all.
Ros19, Excellent point. Will add to the email......... send in the next hour. Ascent Resources raised £3m just last weekend, on Sunday via Primary Bid with PI' participating actively. Cheers.
I think this could be worth a look at. Will PL be aware of it? www.primarybid.com
tozerk, Yes. we still need IDC terms to be agreed and finalised. But the idea is with the comfort of knowing extra funds are forthcoming you get to agree terms sooner with better leverage during negotiations & can overcome small nick-nacks that might be jeopardise the final outcome. It's like you plan to buy the car you always wanted but due to not enough visibility of future funds, you refrain from going ahead. Suddenly you land a new job and that shopping list comes out again....lol
Despite the expressions of interest (even if they're good / successful), we're still reliant on IDC agreeing the deal though aren't we?
MrP. details as in Jaf's linked article - "Deloitte has invited potential investors to submit their expressions of interest documents by email, by no later than 17h00 on Friday, 17 February 2017, to Edward Dyer (contact details listed below), noting that binding offers will be required by Thursday, 9 March 2017. Terblanche briefly added that expressions of interest will be followed by a formal correspondence from the Business Rescue Practitioner which will set out the requirements by which an interested party is to comply in order to participate in the Process. The initial requirements (which are more fully set-out in the process letter) are that interested parties must: • Sign a confidentiality agreement; and • Pay a fee of ZAR 10,000 (ten thousand South African Rand) ------------- The email address was not published in the article. ATB
MrP, contact name was stated in the article posted by Jaf1948 on 9 Feb. http://www.miningweekly.com/article/strategic-investor-into-the-business-of-lace-diamond-mines-2017-02-08/rep_id:3650 I hope it helps & will look in tomorrow as it's 1am local time and need to get some ZZZZ's.