Nov. 9 (Bloomberg) -- DRDGold Ltd., a South African producer of the precious metal, said it plans to apply to the High Court of South Africa for a judicial management order in a bid to save its Blyvooruitzicht mine from liquidation. Its stock declined the most in almost 13 months.

“In addition to the 75 million rand ($10.1 million) we have committed to saving Blyvoor over the past three months, we will provide the judicial manager with whatever assistance he or she may require to obtain additional ‘rescue finance’ from appropriate institutions,” said Chief Executive Officer Niel Pretorius in a statement today.

DRD owns 74 percent of Blyvoor, one of the company’s two mining operations in South Africa. The mine, which opened in 1937, is making monthly losses of 27 million rand, according to DRD, after being hurt by strike action, electricity price hikes, rockfalls and fluctuations in the value of the rand.

A court-appointed judicial manager may give some creditors temporary preference over others and agree compromises with creditors “without the risk of committing an act of insolvency,” which may expose the mine to liquidation. Pretorius said

Blyvoor may remain under judicial management until it has regained access to the mine’s No. 5 shaft, DRD said. The shaft produces about half of the mine’s quarterly output of 30,000 ounces. Shares in DRD fell 55 cents, or 11 percent, to 4.30 rand in Johannesburg, the biggest decline since Oct. 24, 2008.

To contact the reporter on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net

Last Updated: November 9, 2009 13:26 EST