Striking Aurora workers to get pay Tuesday

Monday March 29, 2010

Zondwa Mandela, Aurora MD

Under fire, cash strapped gold miner Aurora Empowerment Systems confirmed it has received interim funding to service its short-term financial obligations, but refused to divulge the source of the finance.

Zondwa Mandela, Aurora MD, said the company would by Tuesday be in a position to pay February salaries.

Workers at Aurora’s East Rand operations, More than 2 000 strong, went on strike earlier this month, claiming that wages had not been paid for February and March.

Mandela stressed that workers pay, housing and nutrition was the company's first priority with regard to the newly-secured funding.

"Given this priority, it is clear that the company is experiencing short-term cash flow problems," he said.

He added that other debts would also be considered on a case-by-case basis.

Aurora said last week that restructuring of mining operations in the Springs area, where the Grootvlei mine is located, would result in the "temporary" losses of 1 440 jobs. Mandela said that the immediate funding-injection would not alter its plans in this regard.

However, he said that as it secured additional finance it would seek to re-employ workers as its operations ramped-up production.

related story: Union wants DMR to intervene in Aurora retrenchments