AURORA CRISIS

PORTFOLIO COMMITTEE ON MINERAL RESOURCES

13 APRIL 2011 GIDEON DU PLESSIS - SOLIDARITY

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CONTENT

1. Aurora’s bid and track record2. Photographic evidence3. Human rights violations4. Solidarity’s position and actions5. Support from the Portfolio Committee6. Conclusion

Aurora’s Offer and Track Record

Aurora’s Bid – 14 Oct 2009

Aurora’s Bid – Oct 2009Black empowered companyR605 million offer for Grootvlei and OrkneyWell capitalized and funds for expansionWill recruit experienced management teamNo retrenchments Employee incentive scheme - PWCCommunity trust and healthcare servicesHousing scheme – basic human rightEducation bursaries for childrenEnvironmental and conservation trust

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Situation in October 20095300 employees Two fully functional mines 7 Operational shafts at Grootvlei6 Operational shafts at OrkneyBrand new state of the art Ndlovu shaftInherited a productive and experienced mining team - from top to bottom

Oct 2009 – 68kg Nov 2009 – 99.6kg Dec 2009 – 134.09kg Jan 2010 – 79.25kgFeb 2010 - 88.92kg mid March 2010 - 34.7kg

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Reality Sets In

Breached obligations of ITCMA from day one31 Jan 2010 – late and partial salary payment1 Apr 2010 – care and maintenance and lay-offsStatutory deductions not transferred:

UIF (not registered)PAYE (SARS not registered)Union subscriptionPension/Provident Fund (fraud)Garnishee orders

RMA / WCA – no death disability coverOwed service providers millions of Rands

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Aurora Empowerment Systems

Aurora’s website:Because the Aurora directors regard their integrity and high ethical standards as priceless assets, Aurora has adopted a code of ethics and conduct. This code outlines our commitment to society, the authorities, our clients and our employees.

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Masters of False Hope• 26 March 2010 – Letter from Sheshile

Ngubane: “Aurora obtained required funding and is fully capitalized and all arrear salaries will be paid on 30 March 2010”

• 9 April 2010 – Aurora press statement: “All arrear salaries will be paid on the same day”

• 15 April 2010 – Aurora press statement: “Outstanding salaries paid”

• 29 April 2010 – Aurora press conference: “Finally received required funding and will restore relationship with unions”

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Masters of False Hope

• 17 May 2010 – Letter from Thulani Ngubani: “All arrear salaries will be paid on 20 May 2010”

• 6 June 2010 – Interview with Khulubuse Zuma: “Everything will be sorted out within 3 months”

• 9th of June 2010 – Letter from Michael Hulley: “Arrear salaries to be paid on 21 June 2010 and insurance will be in place by 16 June 2010”

• 24 August 2010 – Aurora press statement: “Employees will be paid”

• 16 Nov 2010 – Eye Witness News: “Ready to pay all outstanding salaries”

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Aurora a Preferred Bidder?Destroyed 5300 jobsPlaced 42 000 people in povertyNone of the shafts are operational anymoreVarious shafts are totally destroyed, or floodedPolluted the wetlandsWater pumps at Grootvlei 3 Shaft removedOwe employees in excess of R12 millionLong list of creditors Massive impact on local economiesEffects reputation of mining industry13

Evidence

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6 Shaft Headgear

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Business Day – 10/11/2010• Enver Motala: “We did not grant

them permission to sell or remove any of the mine assets”

• Thulani Ngubani: “I am unaware of the removal of any property of the site and I have not seen anything like that”

• Frasy Namanyane - NUM: “Aurora told me they received a mandate from the liquidators to sell scrap”

• SAPS investigation19

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Daggafontein

• Ndlovu shaft – built 2008 at a cost of R40m

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400 Meters dow

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Human Tragedy and Views of the Miners

Marius Ferreira

Died: 29 /03/ 2011 SUICIDE

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Elphus Mabunda

“I wish that we can go back to apartheid, because I was much better off then, than under Aurora”

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Solidarity’s Actions

Solidarity’s Actions

Joined forces with the NUMCorrespondence to various departmentsLiquidation application against Aurora UIF actionInvestigation in the total liquidation processKeep the human rights violation in the public domain

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Portfolio Committee Support

Defend our Bill of Rights: 10. Right to human dignity13. Slavery, servitude and forced labour23. Labour relations24. Environment27. Healthcare, food, water and social security

MIGDETT progress – Transformation, Competitiveness and SustainabilityWater crisisNegative impact on foreign investment in mining44

Media Coverage

• As this picture in Sowetan said:

Foreign Media

• By Donna Bryson - Associated Press• 4:59 p.m., Wednesday, December 1, 2010

Foreign Media

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• South Africa's mining industry continues to slide• Australian Broadcasting Corporation• Broadcast: 07/03/2011• Reporter: Ginny Stein• “Investor confidence in South Africa's mining capabilities

is continuing to wane as the country faces an uphill battle to revive the industry.

• Typical of the problems, a mining company called Aurora, owned by relatives of President Jacob Zuma and former President Nelson Mandela, that's not paying its bills. The ABC's Africa correspondent Ginny Stein reports…………………………………..

Conclusion

Way Forward Political intervention and support to remove Aurora Empowerment SystemsPolitical support for an investigation into any form of unethical conduct Political pressure to be applied on all relevant state departments to address people issues The Department of Mineral Resources inspectors need to advise if the mine is still safe and in a condition to be sold as a mineThe pumping station at Shaft 3 needs to be restored immediately

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