S. African mine executive suspended over Indonesian gold mine transaction irregularity

Roger Kebble, the deputy chairman and executive director of South African gold miner Durban Roodepoort Deep Ltd. (DRD), said late Monday he was in talks with his lawyers and directors over reports that he has been suspended from his position as executive director, Dow Jones reported Tuesday.

In a statement, Kebble said he had received a letter from Mark Wellesley-Wood, DRD's chairman, "purporting to suspend me from my executive position at Durban Roodepoort Deep because of the current investigation into the acquisition of the Rawas mine by the company.

"I am at present consulting my fellow directors and legal advisers on this matter, and will respond fully in due course," Kebble said.

The suspension relates to Kebble's role in a transaction to buy the Rawas gold project in Indonesia, which ceased operation in March 2000.

DRD Chairman Mark Wellesley-Wood issued a statement earlier Monday saying that when Kebble was DRD chairman in 1999 it had issued 8.25 million shares to various creditors of Laverton Gold and its subsidiary, BT Barisan Tropical Mining. The creditors comprised Consolidated African Mines, or CAM, at which Kebble is chairman, as well as Continental Gold Fields NL.

DRD said the allotment and issuance of the shares was invalid.

Companies within the CAM group and other CAM-related companies received 3.4 million of the shares in question, and the shareholders of Laverton included Weston Investments Ltd., which is also a subsidiary of CAM, Wellesley-Wood said.

The suspension means Kebble will cease all executive functions, although he will remain as an ordinary director and will be free to carry out these duties. (*)