Central Rand Gold in hot water

Central Rand Gold, the gold prospecting and mining company, is in hot water with shareholdspecification of a crushing machineers for not disclosing the threat of a non-compliance notice issued by the Department of Mineral Resources.

The risk facing the company became clear at the weekend when the Sunday Times cited DMR spokesman Bheki Khumalo as saying that the South African gold producer might be forced to close its mine near Soweto as early as this week. On Monday morning the company admitted receiving the notice from the DMR early in August informing it that the department was considering re-evaluating its mining right as a result of certain elements of “non-compliance” with social labour plan requirements of its new order mining right. It said it was awaiting feedback from the DMR after it had submitted a full response. CRG said the social labour plan under question was based on...