🕐22.09.11 - 09:54 Uhr

ANNOUNCEMENT: VILLAGE ANNOUNCES A PRODUCTION DISRUPTION AT CONS MURCH



Press Announcement 22 September 2011
Village announces a production disruption at Cons Murch
Village today announced that it started a process to dismiss employees, who are members of the National Union of Mineworkers ("NUM"), that partook in an unprotected strike action in the form of a go-slow campaign at its Cons Murch mine in Limpopo.

The go-slow action over the last two weeks has negatively impacted production from the underground operations at Cons Murch with daily production achieved at around a third of normal production levels.

The dispute arose in relation to certain historic overtime payments claimed by the employees resulting from their employment at Cons Murch, pre Village ownership and involvement.


In an attempt to normalise the labour situation and to avoid drastic action, a further and final ultimatum was issued to our employees to normalise production levels by Wednesday 21st September 2011.

It is anticipated that there will be no production from Cons Murch for at least a two week period and that antimony and gold production for the December 2011 quarter could be some 500 tons and 25kg respectively, lower than that forecast for the September quarter.

The lower production will not significantly impact on the forecast production for the September quarter.

Although the lower production will have a materially negative impact on the Cons Murch results for the December quarter, it will not materially impact the results of Village for the December quarter.


Notes to editors
Located in Gravelotte,, which is 50 km from Phalaborwa, Cons Murch is an Antimony and Gold producing mine.

The mine has 3 operational shafts and employs about 950 employees.

The National Union of Mineworkers (NUM) represents mainly the semi- skilled category of the work force, with Solidarity representing most of Category A employees (miners, artisans etc). About 840 workers (NUM members) are to be affected in the dismissal process.
Contacts:
Village CEO | Bernard Swanepoel | | 083 303 9922 Vestor | Media and Investor Relations | Louise Brugman | | 011 787 3015 | 083 504 1186
Logo_sharper02 media & investor relations
louise brugman managing director T: +27 (0) 11 787 3015 C: +27 (0) 83 504 1186 E: www.vestor.co.za
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