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No compensation for families of Lily Mine collapse yet, creditors meet

Business rescue practice Sturns says creditors are expected to meet to vote on a plan for Vantage Gold's Barbrook mine.

Sink hole at the Lily Mine in Barberton. Picture: Vantage Goldfield

JOHANNESBURG - Business rescue practice Sturns says creditors are expected to meet on Wednesday to vote on a plan for Vantage Gold's Barbrook mine.

About 130 Lily Mine workers were moved to Barbrook when operations were suspended there after three workers were trapped after a ground collapsed last year.

Barbrook was placed under business rescue last December after announcing that it lost revenue of more than R20 million due to a lack of gold production.

The CEO of Vantage Goldfields, Mike McChesney, assured government officials and the community of Low's Creek earlier this week that the families of those affected by the Lily Mine incident will be compensated as soon as funds are available.

The company has committed to paying the families of Solomon Nyerende, Pretty Nkambule and Yvonne Mnisi R200,000 while miners who survived will get R50,000.

Business rescue practitioner Rob Devereux says they cannot commit to a date of when the families and miners will be paid out.

“I undertook, in my business rescue plan, to pay the families the R200,000 each plus R50,000 to each miner who was trapped. It’s very difficult to commit to a date.”

Last week community members disrupted a provincial African National Congress lekgotla meeting in Mpumalanga, requesting that the ruling party intervene in the situation.

(Edited by Shimoney Regter)