The world's third largest miner of platinum has been given new rights by the South African government that will allow it to continue its current operations for the next 30 years.

It has been announced that the South African government has converted the old-order mining right of Lonmin's Marikana operation into a new-order mining right, entitling the company to mine the designated property for the next 30 years.

Lonmin's operations at Marikana account for around 95 per cent of the company's annual production and chief executive Brad Mills believes the move will help to ensure that Lonmin continues to remain a successful business.

Mr Mills explained that the conversion removes a “fundamental uncertainty” which had existed around the company's operations.

Speaking to Mining Weekly, he added: “It gives us great confidence in our current and future capital commitments to South Africa."

Lonmin is aiming to produce as much as 1.3 million ounces of platinum annually by 2010, with its production currently standing at just over 900,000 ounces per year.

Ÿ Adfero Ltd