CENTRAL Rand Gold, the gold prospecting and mining company, is in hot water with shareholders for not disclosing the threat of a noncompliance notice issued by the Department of Mineral Resources.

The risk facing the company became clear when the Sunday Times cited DMR spokesperson Bheki Khumalo as saying the South African gold producer might be forced to close its mine near Soweto as early as this week.

Yesterday morning the company admitted receiving the notice from the DMR early last month informing it that the department was considering re-evaluating its mining right as a result of certain elements of "noncompliance" with social labour plan requirements of its new order mining right.

It said it was waiting for feedback from the DMR after it had submitted a full response.

CRG said the social labour plan under question was based on its original 2008 operational plans submission, which had envisaged a considerably larger resource base and operation.

A request had been made to the DMR to review the company's social labour requirement commitments so that they reflected the operational reality of a reduced short-term resource base.

The reduction in the company's resource base is as result of a number of factors, including acid mine drainage, which is threatening the company's mining activities in the Witwatersrand basin.

According to CRG a presentation was made by the company to the DMR on August 24, outlining how the company is rectifying noncompliance issues.

CRG is waiting for an official response from the DMR and continues to evaluate its submission and will inform shareholders accordingly .