Sept 18 (Reuters) – Great Basin Gold Ltd said its
South African unit Southgold Exploration filed for creditor
protection a week after it suspended operations at its Burnstone
mine.
Great Basin suspended production at the mine in the
Witwatersrand Goldfields last week due to its inability to
continue funding operations at the mine.
The mine, which started production in February last year,
was producing about 5,000-6,000 tons of ore per day.
The company is trying to negotiate a debtor-in-possession
working capital loan with certain lenders to pursue an orderly
shutdown of the mine.
During the process of negotiation for financing, Great Basin
plans to restructure or sell Southgold’s assets.
South African miners have been grappling with union
militancy, demand for higher wages and proposed higher mining
taxes.
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