Lonmin is now set to receive approval to sell non-pgm base metals gleaned from its operations in South Africa, it has been confirmed.

Last week, the company revealed that it had been instructed by the government to stop sales of 'by-product' metals, such as copper, nickel and chrome, in the country.

The Department of Mineral Resources (DMR) has revealed that the rights to the associated minerals will be granted in due course, as an application was only made at the end of 2009.

However, the body also expressed its surprise at the exclusion of an area over which black economic empowerment firm Keysha Investments 200 has received prospecting rights.

"Decisions for Lonmin's applications for the inclusion of associated minerals as part of its converted mining rights are imminent," said the DMR.

"(The DMR) is puzzled by the fact that Lonmin chose not to apply for the inclusion of these minerals earlier. It only sought to do so once the Keysha application process was well underway."

Lonmin had been outraged at apparently being given the sales ban in a letter from the DLR, responding with strongly-worded statements and the threat of legal action.

But with the DMR now set to confirm all the company's Section 102 applications, the world's third-largest platinum producer has adopted a conciliatory tone.

"Lonmin would like to thank the DMR for its cooperation in expediting the approval of these Section 102 applications," read a statement.

"The disputed prospecting right granted to Keysha covers a small area of Lonmin property where only UG2 is currently mined."

Lonmin also revealed that sales of associated minerals from the Keysha area reached $11 million in 2009, rather than the previously stated figure of $80 million.

Holgoun, the parent company of Keysha, has complained about Lonmin's "onerous and impractical" conditions as it tries to implement a court order in relation to minerals mined in its area.

"A court order is currently in operation, in terms of which Lonmin has to account for its disposal of the minerals awarded to Keysha under its prospecting right," said the DMR.

Lonmin confirmed last month that its pgm production in concentrate increased by 10.9 per cent in the third quarter.

Sources:



S.Africa says Lonmin base metals rights 'imminent' (11/08/10)



Conciliatory Lonmin thanks South Africa's DMR for ‘clarification' (11/08/10)



Lonmin settles South Africa dispute (11/08/10) 

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