Keysha keen on Lonmin partnership

[miningmx.com] — THE HolGoun Group, whose subsidiary Keysha Investments was awarded a prospecting right over a portion of Lonmin’s Marikana operations, said on Friday it would seek talks with Lonmin on how the firms could mine the property together.

This came after the Director General of the Department of Mineral Resources, Thibedi Ramontja, had rejected Lonmin’s appeal against the granting of the prospecting right to Keysha over the property for minerals related to PGM’s.

HolGoun CEO and Keysha chairperson Vanessa Gounden said on Thursday the group has subsequently submitted a mining right for the related minerals.

“It’s not impossible for holders of different mineral rights to work together on one property, it happens everywhere.’ HolGoun’s Head of Business Development, Anastasia Maimonis told Miningmx on Friday. “We’ve always said this would require a working relationship with Lonmin.’

Maimonis said Keysha has completed a full works programme and feasibility study in preparation for the mining right application.

HolGoun is chaired by Sivi Gounden, a former DG of public enterprises, who also served on Lonmin’s board until October 2009.

The dispute between Keysha and Lonmin came to the fore in August 2010 when Lonmin was instructed by the Department of Mineral Resources to refrain from selling nickel, chrome, or any other minerals other than PGMs.

Lonmin produces all of these metals as by-products to its main business of PGM production. The ban was subsequently lifted. Lonmin’s head of investor relations Tanya Chikanza said on Friday the ban has not been reinstated.

“It is business as usual,” she said.

In response to the dismissal of the appeal, Lonmin said on Friday the “decision is procedurally and substantively incorrect, and will take all necessary future measures to protect its rights, including taking the matter to court for review’.

CEO Ian Farmer wasn’t immediately available to comment, but said on a previous occasion Lonmin’s financial exposure was minimal.

“They would only be entitled to the profit made on revenue from sales of associated minerals from the area subject to their prospecting right after we have deducted the operating costs,’ he told Miningmx in August 2010. “That sales revenue totalled only $11m in 2009.’

Maimonis said HolGoun was prepared for a protracted legal battle. “We had suffered a lot of reputational damage, but we’re confident we did everything strictly in terms of the law.’

The issue of mineral rights on related minerals was one of the “ambiguities’ identified by Mines Minister Susan Shabangu when she announced the current revision of the Mineral and Petroleum Resources Development Act in September 2010.

She said in December the amendment process won’t be concluded by parliament before the end of 2012.