HomeNewsBan on Lonmin associated mineral sales cancelled

Ban on Lonmin associated mineral sales cancelled

Lonmin CEO Ian
Johannesburg, South Africa — MININGREVIEW.COM — 12 August 2010 – The Department of Mineral Affairs (DMR) has cancelled the ban on sales of associated minerals by Lonmin Plc “’ the world’s third- largest platinum producer.

Lonmin CEO Ian Farmer told Miningmx that the group’s financial and operating position was “back to normal” bar the on-going dispute with Keysha Investments, which he said now had to go through a lengthy process involving a series of legal hurdles.

The DMR has also granted all the Section 102 applications by Lonmin for rights over associated minerals, except for the ground over which Keysha has been granted a prospecting licence.

Farmer commented, “We don’t think Keysha has a case and, in the unlikely event that they do eventually win, Lonmin’s financial exposure is minimal.

“They would only be entitled to the profit made on revenue from sales of associated minerals from the area subject to their prospecting right, after we have deducted the operating costs. That sales revenue totalled only US$11million (R80 million) in 2009.”

While everything now appears back on an even keel Farmer said there remained a “fundamental difference of opinion” between Lonmin and the DMR over the terms of conversion of the group’s old order mining rights in 2006.