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Lily Mine: Canadian company fails to pay $2,5m to resume operations

The Lily Mine is already over three months in arrears and has not been unable to pay its workers.

FILE: Miners at Lily Mine in Barberton Mpumalanga. Picture: Kgothatso Mogale/EWN.

JOHANNESBURG - Lily Mine has confirmed a Canadian company, AfroCan Resources Gold, has failed to meet a deadline to pay $2.5 million which would have seen operations at the mine resume.

The Barberton operation was placed under business rescue, putting 900 jobs on the line after a shaft collapse in February.

The Lily Mine is already over three months in arrears and has not been unable to pay its workers since the end of March.

Meanwhile, three workers remain trapped underground after the container they were in plunged into a massive hole caused by rock fall in early February.

Solidarity's Gideon du Plessis says workers are frustrated and vulnerable because they haven't received any income for over three months now.

"The workers are in absolute crisis, with a few of them already been sequestrated."

Lily Mine management says it's angry and disappointed following the latest developments with its rescue plan, saying many livelihoods have been affected.

At the same time, it's still unclear when operations to rescue three workers who are still trapped underground at the mine will resume.