Aquarius Platinum South Africa (AQPSA) has rescinded its mining contract with Moolman Mining following advice given over a misrepresentation made by Moolman.

Confirming the decision, AQPSA's parent company Aquarius Platinum said that the misrepresentation had left the firm with no choice but to pull out of the previously arranged Marikana mining contract.

Acting on independent advice and audit information published in a KMPG report, AQPSA is now looking to claim damages of around R1 billion from Moolman.

However, officials for the company have stressed that business will continue as normal and that the operational impact of the decision would be limited so as not to cause any resulting financial difficulties.

A new contractor will be bought in to replace Moolman, according to AQPSA, with talks to appoint a replacement for the Marikana mine expected to be held as soon as possible.

Analysts have predicted that the mine will see an improvement in its financial year results compared to the significant losses of last year, thanks to more efficient operating and lowered costs.


Ÿ Adfero Ltd