* South Africa’s DMR rules in favour of Keysha
* Lonmin may seek judicial review and compensation
LONDON Jan 12 (Reuters) – South Africa’s Department
of Mineral Resources (DMR) has thrown out an appeal by platinum
miner Lonmin over prospecting rights on part of its
mining area.
The DMR awarded rights for base metals minerals on part of
Lonmin’s area to Keysha Investments, which is linked to a former
Lonmin director, in May 2009. Lonmin appealed that decision.
“Lonmin is confident of its legal position and, given its
view that this decision is procedurally and substantively
incorrect, will take all necessary future measures to protect
its rights, including taking the matter to court for review,”
the company said in a statement.
The DMR declined to comment on the Lonmin case.
A source familiar with the situation described the area in
question as one of Lonmin’s “minor assets”, adding revenue
generated by the associated minerals on the disputed area
totalled $11 million in 2009.
That compares with Lonmin’s group revenue of $1.9 billion in
the 12 months to last September 30.
Lonmin may seek compensation from the DMR and its former
director. It said in November it may lodge compensation claims
on the basis of expropriation and breach of duties respectively.
Continued…
