[miningmx.com] — CENTRAL Rand Gold was granted a stay of execution on Monday as the Minister of Mineral Resources, Susan Shabangu, agreed to temporarily reverse a decision on the cancellation of the company’s mining right.
The decision formed part of court proceedings initiated by CRG, after Shabangu and her department withdrew the company’s mining right in September for not giving effect to its social and labour plans. The North Gauteng High Court is yet to decide whether it would set aside the ministerial order for good, with the department of mineral resources and Shabangu indicating they would oppose CRG’s application.
“The effect of the order means that mining operations can immediately be resumed as an interim arrangement while Central Rand Gold.pursues final relief in the High Court to review and set aside the Minister’s decision,’ read a company statement.
CRG said it was now waiting on a record of proceedings which resulted in Shabangu’s decision to cancel the mining right, as well as the reasons therefore.
The company has proven to be one of the biggest disappointments ever to have listed on the JSE and its current price of below 10c/share compares with an all-time high north of R20 in 2007. However, it said earlier this month that, following a review of its operations, it was still able to be a profitable low-cost producer if it was given the chance.
Also, its continued survival is central to the department of water affairs’ plan to deal with acid mine drainage in the Central Basin.
CRG had concluded a deal with the Trans Caledon Tunnel Authority, the state’s appointed project managers on acid mine drainage, to utilise CRG’s pumps to de-water and maintain the Central Basin.
CRG’s LSE-listed shares were up 15.8% to 0.44 pence. Its JSE-listed shares were up 1c to 7c.
