[miningmx.com] – AQUILA Resources’ hopes of accelerating a mining permit application for manganese in South Africa’s Northern Province may be frustrated as a government-owned company seeks to investigate its own rights to the property.
The Pan African Mineral Development Company (PAMDC), in which the South African government has a stake, submitted a prospecting permit application last year over part of the 147.8 million tonne (mt) Gravenhage prospect that Aquila Resources has explored, and wants to mine.
The Department of Mineral Resources (DMR) called for an internal investigation into the fact PAMDC had been awarded overlapping prospecting rights to the property, but only after first indicating PAMDC had legitimately applied to prospect the area – a development that led to Aquila deciding to litigate the matter.
However, the PAMDC has since hired its own legal counsel and wants to study its rights in a separate review, potentially holding back the progress of the DMR’s investigation. The matter is pressing for Aquila Resources which said it had submitted its mining application three years ago.
“The issue is that we need to apply for use of rail facilities through the province from Transnet Freight Rail. There are other companies competing for access to the rail line that already have mining permits in place,” said Martin Stulpner, commercial director of Aquila Resources.
Julia Ferraz-Cardoso, a director at law firm ENS, which has been retained by PAMDC, confirmed that her client would defend the appeal. “We have told the DMR that we would defend the appeal and that we will launch a cross-appeal,” she told Miningmx.
Aquila, which is led by Australian entrepreneur, Tony Poli, is considering investing up to $480m in South Africa of which $180m would be on the proposed 1.5 million tonne/year (mtpa) Avontuur manganese mine of which the Gravenhage deposit is a part.
Aquila said a further $215m to $300m is being proposed for investment on Thabazimbi, an iron ore prospect containing an estimated 37.1mt in measured resources. Some R450m has been invested in exploration activities by Aquila Resources since 2006.
Said Stulpner: “The DMR has been cooperative and we’re hopeful that our appeal won’t be delayed. We hope all parties stick to their undertakings but the matter has been taken out of the hands of the DMR a bit”.
A market source believed the PAMDC was involved in delaying tactics. “That’s the way we see it,” he said. “Aquila is hoping to bring the matter to a close especially since such a lot of investment turns on this,” he said.
PAMDC was formerly the National Railways of Zimbabwe (ZIZA) and before 1980, Rhodesia Railways. In the colonial era, ZIZA operated rail routes through southern and northern Rhodesia or Zimbabwe and Zambia respectively. That’s why ZIZA’s shareholders consist today of these southern Africa governments.
PAMDC was created in 2007 as a new joint venture company aimed at taking over the diamondiferous concessions in South Africa. At the time, the Zimbabwean government appointed two of its cabinet members to PAMDC’s board, and there were even plans to list it on the JSE.
