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Johannesburg, Dec 22 (I-Net Bridge) - Central Rand Gold [JSE:CRD], the gold
prospecting and mining company, on Thursday confirmed that the decision
to cancel its mining right has been set aside.
The company said a consent order setting aside the Minister of Mineral Resources' administrative decision to cancel the mining right held by its subsidiary Ferreira Estate and Investment Company (FEIC) was obtained in the High Court of South Africa.
"The granting of the order concludes FEIC's legal challenge to the decision," Central Rand Gold said in a statement to the JSE.
The conclusion of the challenge comes exactly three months after the company was first informed of the minister's decision to set aside its mining right.
In late September Central Rand Gold was forced to halt operations after it was told that the mining right was cancelled based on the violation of two conditions related to the mining work programme and social labour plan.
Central Rand Gold had warned in early September that its social labour plan was being scrutinised by the ministry.
It said the plan under question was based on its original 2008 operational plans submission, which had envisaged a considerably larger resource base and operation.
The company made requests to the Department of Mineral Resources to review its social labour requirement commitments so that they reflected the operational reality of a reduced short-term resource base more closely.
Last month the company said it expected its production to average 1,000 ounces per month for the remainder of the year.
At 12:40 shares in Central Rand Gold had gained 33.3% to trade at 20 cents on the JSE.
Month to date the stock has added 233.3% or 14 cents.
The company said a consent order setting aside the Minister of Mineral Resources' administrative decision to cancel the mining right held by its subsidiary Ferreira Estate and Investment Company (FEIC) was obtained in the High Court of South Africa.
"The granting of the order concludes FEIC's legal challenge to the decision," Central Rand Gold said in a statement to the JSE.
The conclusion of the challenge comes exactly three months after the company was first informed of the minister's decision to set aside its mining right.
In late September Central Rand Gold was forced to halt operations after it was told that the mining right was cancelled based on the violation of two conditions related to the mining work programme and social labour plan.
Central Rand Gold had warned in early September that its social labour plan was being scrutinised by the ministry.
It said the plan under question was based on its original 2008 operational plans submission, which had envisaged a considerably larger resource base and operation.
The company made requests to the Department of Mineral Resources to review its social labour requirement commitments so that they reflected the operational reality of a reduced short-term resource base more closely.
Last month the company said it expected its production to average 1,000 ounces per month for the remainder of the year.
At 12:40 shares in Central Rand Gold had gained 33.3% to trade at 20 cents on the JSE.
Month to date the stock has added 233.3% or 14 cents.
