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Lonmin: South Africa Government Stops Non-Platinum Metal Sales
Aug 6, 2010 10:36CST
Source:SMM

LONDON, Aug. 5 -- Lonmin PLC (LMI.LN) said Thursday that on Aug. 4 it received a letter from the Department of Mineral Resources of the Government of South Africa, or DMR, which contained an order to refrain from selling Nickel, Copper, Chrome and any other minerals other than Platinum Group Metals, or PGM, with immediate effect, notwithstanding the natural occurrence of these minerals in the PGM reefs and seams.

MAIN FACTS:

-Lonmin will contest this matter vigorously and will be seeking an urgent court ruling to overturn this order.

-These minerals contributed $80 million to Lonmin's turnover in the 2009 financial year.

-The previous legal framework gave miners the right to dispose of associated minerals for their own benefit, while the 2002 Mineral and Petroleum Resources Development Act, under which Lonmin converted its mining rights in October 2006, is silent on this matter.

-Lonmin will spare no effort in resolving this situation.

-Meanwhile, its mining and processing operations will continue as normal.

-Shares closed Thursday at 1647.0 pence.

 

copper Cu
nickel Ni

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