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Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011
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www.drdgold.com Relevant subsidiary structure: West Wits 1 DRDGOLD West Wits Holdings West Wits Mining
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www.drdgold.com Relevant subsidiary structure: ERPM 2 DRDGOLD DRDSA ERPM
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www.drdgold.com Western Basin 3 1995 – 1999: West Wits mines the area under two tributary agreements. The rock it extracts contributes approximately 0,5% to the total underground excavation 2006:West Wits agrees with Mintails to establish a business trust to seek a self-sustainable solution for AMD in the region 2007:The trust structure is replaced by a S21 company, Western Utilities Corporation (WUC) pursuant to a DWAF directive with a structure agreed to by DWAF 2007-2011:DRDGOLD contributes R23 980 204 in direct and indirect water treatment & research costs; DRDGOLD dedicates the commercial upside of a rock dump (R42m in value) at WW to a special purpose trust for future costs
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www.drdgold.com CENTRAL BASIN: ERPM 4 2004-2008 ERPM incurs R41m direct net expenditure for pumping and treating Central Basin water 2008: ERPM stops pumping in terms of a Section 54 work stoppage order issued by the DMR, and its pump-station floods 2009: ERPM commits shaft infrastructure and its HDS plant to WUC (R300m-R400m in value) and agrees to a guaranteed water off-take agreement with WUC post regional implementation. Currently:ERPM continues to fund shaft and plant holding costs (Eskom, security, etc) at R280 000 per month pending implementation of solution.
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www.drdgold.com Current initiatives Research project with leading academic institution assessing viability of alternative water treatment technology using ERPM ice plant Alignment with TCTA assisting with execution of DWA mandate Maintenance of reserve power allocation & infrastructure to ensure adequate power for submersible pumps, plant and shaft R7.8 million expended from Oct 2008 to present 5
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www.drdgold.com Conclusion DRDGOLD supports the WUC proposal it is a full discharge of the terms of 2005 directive it provides the only self-sustaining, “zero-cost-to-taxpayer” solution it is the only proposal that will survive mine closures 6
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Western Basin and Central Basin involvement Niël Pretorius, CEO June 2011
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