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Lonmin gets green light

Aug 11 2010 20:11

Company Data

Lonmin P L C [JSE : LON]

Last traded R95.65
Change R-1.36
% Change -1.40%
Cumulative volume 2.90m
Market cap R19.38bn

Last Updated: 25/05/2012 at 19:32. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - The Lonmin [JSE:LON] mining group was on Wednesday granted rights to sell the byproducts of its platinum mining operations.

It received a letter from the department of minerals resources confirming it could resume selling copper, nickel, chrome and other minerals, the company said in a statement.

"The DMR has further confirmed that all of Lonmin's Section 102 applications have been approved, thereby clarifying Lonmin's right to mine and dispose of associated minerals at all its properties other than the small area which is subject to the prospecting right issued to Keysha Investments 220 (Pty) Ltd, a Holgoun group company."

The department said on Tuesday it gave the prospecting rights for the byproducts of Lonmin's platinum operation to Keysha after Lonmin in December last year withdrew its application for the rights to sell them.

Wednesday's letter rescinded an instruction from the department, dated August 3, requiring Lonmin to refrain from selling nickel, copper, chrome and any other minerals, except for platinum group metals.

Keysha is part of the Holgoun group, owned by former public enterprises director general Dr Sivi Gounden and his wife Vanessa.

Gounden was a director at Lonmin until October last year.

Lonmin said the disputed prospecting right covered a small area of its property. Sales from the byproducts of its operation amounted to approximately $11m (currently about R80.1m) in 2009.

Lonmin said it appealed against both Keysha's application for the prospecting rights in March last year and against the department's awarding of the rights to the company.

"Lonmin remains entitled to mine and dispose of the associated minerals mined from this area," the statement read.

- Sapa

 
 
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