[miningmx.com] – IVANHOE Mines has suspended a retrenchment process at its Platreef project in South Africa’s Northern Province after it received a mining right from the country’s Department of Mineral Resources (DMR).
Ivanoe Mines said on October 22 that it had no choice but to cut the jobs of about 325 people at the project, which is proposed will cost $1.6bn to build, after waiting more than four months for a mining permit.
Bloomberg News cited a letter from the DMR to Ivanhoe in a report on October 30 in which the South African government criticised the Canadian firm’s social and labour plans for the community near the mine.
The DMR described Ivanhoe’s plans to have the building of the mine benefit local communities as “sketchy” and that they “did not offer much” – a position that had delayed granting of a mining permit to Ivanhoe.
Today, however, in an announcement that had the backing of South African mines minister, Ngoako Ramatlhodi, as well as Robert Friedland, president of Ivanhoe Mines, the Platreef project was expected to attract foreign capital and benefit communities.
“The final regulatory approval of the Platreef Project’s mining right is significant not only for the development of the project itself but it also signals the South African government’s determination to grow our country’s economy,” said Ramatlhodi.
“The mining right, or licence, authorises Ivanhoe to mine and process platinum-group metals, nickel, copper, gold, silver, cobalt, iron, vanadium and chrome,” said Ivanhoe Mines in the announcement.
Friedland said that the mining right, which has been dated November 4, will enable the “… immediate resumption of preparations for continued construction at the Platreef site”.
According to a preliminary economic assessment of the Platreef project, it is estimated it would mine eight million tonnes a year producing 785,000 ounces of platinum, palladium, rhodium and gold a year, said Ivanhoe Mines.
