11th Oct 2012 14:35
RNS RELEASE
11 October 2012
Final amendment of Mining Right and settlement with Keysha
Further to the announcements made on 13 January 2012 and 11 August 2010, Lonmin Plc ("Lonmin") announces that it and the Department of Mineral Resources have today executed a notarial amendment of one of its existing mining rights on Middelkraal in respect of a small portion of its mining area, such that this now explicitly permits Lonmin to exploit and dispose of the associated minerals necessarily extracted as part of its core business of mining platinum group metals ("PGMs").
This confirms that Lonmin now holds new order mining rights for PGMs and associated minerals for wholly owned assets across its entire primary mining area at Marikana, in the North-West Province of South Africa, which accounts for substantially all of its current production. Lonmin is therefore entitled to retain the full economic benefit of all associated minerals extracted from the Middelkraal area.
To enable this amendment to be granted, Keysha Investments 220 (Pty) Ltd ("Keysha") has abandoned the prospecting right for associated minerals and metals that was granted to it over this part of Lonmin's mining area and has irrevocably withdrawn an application for a mining right made over the same area.
Lonmin has agreed to compensate Holgoun Investment Holdings (Proprietary) Limited, Keysha's parent company, for relinquishing the disputed prospecting right and its costs including those incurred in carrying out prospecting activities over the area, with an amount of approximately $4.0 million.
- ENDS -
ENQUIRIES
Investors / Analysts: | |
Lonmin | |
Tanya Chikanza (Head of Investor Relations) | +27 11 218 8300 |
Ruli Diseko (Investor Relations Manager) | +27 11 218 8300 |
Media: | |
Cardew Group | |
James Clark / Emma Crawshaw Sue Vey | +44 (0)20 7930 0777 +27 (0) 72 644 9777 |
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Brunswick- Johannesburg | +27 (0) 11 502 7400 |
Cecilia de Almeida Felicity Hudson Tshepo Mophiring | +27 (0)83 325 9169 +27 (0)71 680 0234 +27 (0)82 887 4124 |
Notes to editors
About Lonmin:
Lonmin is one of the world's largest primary producers of Platinum Group Metals (PGMs). These metals are critical to many industrial applications, especially catalytic converters for internal combustion engine emissions, as well as their widespread use in jewellery.
Our operations, consisting of eleven shafts and inclines, are situated in the Bushveld Complex in South Africa, a country which hosts nearly 80% of global PGM resources. We have been granted a New Order Mining Licence by the South African government for our core operations, which runs to 2037 and is renewable to 2067. We have resources of 175 million troy ounces of platinum, palladium, rhodium and gold and 43 million ounces of reserves.
We create value for our shareholders through mining, refining and marketing PGMs and have a vertically integrated operational structure - from mine to market. Our Mining operations extract ore from which our Process Division produces refined PGMs for delivery to our customers. Underpinning our operations, our Shared Services functions provide high quality levels of support and infrastructure across the operations.
For further information please visit our website: http://www.lonmin.com
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